Bits Per Second (BPS) measures the rate of data transmission in a network. In the context of cryptocurrencies, it refers to the speed at which transactions are processed and confirmed on the blockchain. A higher BPS indicates that more transactions can be processed within a given timeframe.

This metric helps evaluate the efficiency and scalability of a cryptocurrency network. For example, Bitcoin typically processes around 7 transactions per second, while Ethereum can handle roughly 15. Networks like Solana and others aim for significantly higher rates. BPS can impact user experience and adoption.

A low BPS may lead to longer transaction times and higher fees, especially during peak demand periods. Conversely, higher BPS rates generally enhance user satisfaction and encourage more widespread use.

Understanding BPS can be crucial for investors and users looking to assess the performance and potential of various cryptocurrencies. As blockchain technology evolves, improvements in transaction throughput are essential for meeting growing demand.