New Payments-Focused Layer 1 Tempo Targets 100,000+ TPS, Contrasting Claims on Practicality

Blockchain infrastructure expert Mert Mumtaz, Co-founder and CEO of Helius, recently stated on social media that while launching a Layer 1 (L1) blockchain can be the "objectively right decision," the "idea of a payments chain does not work in practice." Mumtaz, whose company Helius provides developer tools for the Solana blockchain, argued that permissioned blockspace, often seen in payments-focused chains, is "closer to web2 than it is to actual blockchain." He added that removing permissions leads to "the exact same perf issues" as other L1s.

However, this perspective contrasts sharply with recent industry developments, notably Stripe's launch of Tempo, a new payments-focused Layer 1 blockchain. Announced today, Tempo aims to process over 100,000 transactions per second (TPS) with sub-second finality. The platform, currently in private testing with major financial institutions like Visa, Deutsche Bank, and Standard Chartered, is designed to overcome infrastructure limitations Stripe encountered with expanding stablecoin usage.

Tempo distinguishes itself by featuring fiat-denominated fees, rather than requiring blockchain-specific tokens for gas. It also supports dedicated payment lanes and opt-in privacy features, tailored specifically for real-world financial applications. Stripe incubated Tempo in partnership with crypto venture capital firm Paradigm, positioning it as an independent entity. This move follows Stripe's strategic acquisitions of stablecoin infrastructure firm Bridge and crypto wallet developer Privy.

The debate around L1 scalability and the viability of payments-specific chains remains central to blockchain development. While general-purpose L1s like Bitcoin and Ethereum face challenges with transaction throughput (around 7-30 TPS respectively, compared to traditional payment systems handling thousands), solutions like Layer 2 networks and sharding are being explored. Solana, a high-speed L1, has demonstrated peak throughputs exceeding 100,000 TPS in stress tests, though its actual operational TPS is lower.

Mert Mumtaz's critique highlights the ongoing tension between decentralization and performance in blockchain design. His assertion that "the only way to permission blockspace is by being turing incomplete (bitcoin, stellar at first) OR by permissioning blockspace" underscores the trade-offs involved. Yet, the emergence of projects like Tempo suggests a continued industry effort to build high-throughput, specialized L1s capable of handling the demands of global payment systems, potentially bridging the gap between traditional finance and blockchain technology.