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Psy Protocol, a fast-growing Proof-of-Useful-Work smart contract startup, has announced today the launch of its public testnet, a major milestone that positions it to achieve its mission of hosting the next generation of the decentralized internet.
Notably, the testnet launch will see Psy protocol introduce a blockchain architecture designed to deliver internet-scale throughput and Bitcoin-level security.
According to the announcements, the launch demonstrates a million-TPS capacity in internal benchmarks, enabled by client-side zero-knowledge proofs and a horizontally scalable state architecture. Notably, Psy’s architecture is unique in that it achieves virtually unlimited transactions per second (TPS) and block times that scale logarithmically with the number of users.
While the protocol has continued to break major grounds, it has received support from leading investors and partners, including Blockchain Capital, Arrington Capital, UTXO, Anagram, Draper Dragon, CoinSummer, Amber Group, Paper Ventures, Protagonist, LBank Labs, Valhalla Capital, StarkWare, Edessa Capital, and strategic mining groups F2Pool and ViaBTC Capital.
 
Speaking on the development, Aleks Larsen, General Partner at Blockchain Capital, said;
“Psy’s architecture tackles the core barrier to mainstream web3 adoption by solving the scalability and security trade-offs that have held decentralized applications back…For the first time, recognized high-concurrency models in the web2 ecosystem, from commerce to AI, can run on a fully decentralized foundation with Bitcoin-level security.”
Following its design, the protocol seeks to address blockchain’s most persistent limitations, which are the inability to support the high-concurrency applications that define modern internet usage with its state model (PARTH). This enables Psy to substantially reduce the computational burden on blockchain networks by leveraging client-side computing to validate millions of transactions in seconds.
Notably, PARTH features an architecture that enables block creation times that scale logarithmically with user count. In benchmark scenarios with one million users each submitting ten transactions, Psy processed 10 million transactions in roughly 10 seconds, demonstrating throughput exceeding one million transactions per second.
Furthermore, Psy’s technology stack makes web3 business models competitive in demanding use cases such as fully on-chain DeFi and agentic payments. With faster transaction speeds, scalable architecture, and built-in data privacy, the testnet demonstrates how Psy achieves scale without compromising the security and decentralization that made Bitcoin revolutionary.
This performance enables blockchain applications to compete directly with centralized platforms while giving users back data ownership and control — rather than leaving it in the hands of tech monopolies.
Following the launch of the Psy testnet today, the protocol will allow developers and users to experience its performance firsthand as it announces plans for its mainnet deployment later this year.
Notably, Psy functions distinctly from most high-throughput blockchains that rely on proof-of-stake consensus, as it builds on proof-of-work principles, the consensus mechanism introduced by Bitcoin.
Furthermore, Psy eliminates the traditional energy inefficiency of proof-of-work by making mining “useful work”, specifically the generation and aggregation of zero-knowledge proofs that directly secure transactions. This shifts mining from wasteful competition to collaborative value creation: instead of determining the blockchain by raw hash power, Psy advances the network by maximizing the useful work miners perform for users.
Carter Feldman, founder and CEO of Psy Protocol, commented on the new milestone, saying;
“Web3 commerce and the agentic economy never scaled because users were asked to choose between convenience and decentralization, Psy removes that false choice, giving developers the tools to build fast, secure, and scalable platforms that feel seamless even though they run fully on-chain.”