Are you a crypto enthusiast? Wondering which cryptocurrencies have high transaction speed or which is the fastest cryptocurrency? Then you have landed on the right page. This article talks about Blockchain’s transaction speed, fastest crypto transfer and also details top cryptocurrencies with high transaction speeds and why cryptocurrency transaction speed is essential?
Table of Contents
- Blockchain: Underlying Technology Behind Cryptocurrency
- Why does its Transaction Speed Matter?
- Top Cryptocurrencies and their Transaction Speeds
Blockchain: Underlying Technology Behind Cryptocurrency
In most simple words, Blockchain is a peer-to-peer, decentralized distributed ledger technology that maintains transactional history in a transparent yet secured and immutable manner.
Since its advent, technology has taken the world to the next level. From its use case in the finance domain, today technology has its footprints in almost all industries such as supply chain, art and music, healthcare, logistics, and many others.
Technology came into existence due to the inadequacies that everyone faces in the current financial system, such as long waiting times associated with validating transactions and payments and high transaction speed.
Why does its Transaction Speed Matter?
Transaction speed is one of the prime factors in Blockchains. Cryptocurrency having higher transaction speed results in the most efficient cryptocurrency. This means the higher the transaction speed of the Blockchains, the better its ability is to transfer data from one party to the other and confirm transactions. Here it is important to note that its transaction speed depends upon several factors such as block time, block size, transaction fees, and network traffic.
Crypto transaction speed can take a hit if the blockchain you transact has high network congestion, huge volume, and increased transaction fees.
Cryptocurrency with high transaction speed is crucial, and to maintain the speed, some specific factors must be considered.
The following are the multiple parameters that contribute to calculating the transaction speed of any cryptocurrency:
- Network Load- if the network load is more, it affects the transaction speed of the cryptocurrency.
- Transaction Complexity- if the transaction is a bit complicated, it affects the transaction speed.
- How frequently is a Block mined?
All these factors, when controlled, the transaction speed is decreased. Also, Experts believe that in near future, transactions will happen immediately without taking any time.
Top Cryptocurrencies That Have High Transaction Speed
There are several cryptocurrencies, out of which bitcoin is the most famous and expensive of all. However, the transaction speed of bitcoin is relatively slow. There are some of the cryptocurrencies which are considered to be the most efficient cryptocurrency because of their high transaction speed.
In this section, let’s explore some of the top-ranked cryptocurrencies with their high transaction speeds.
Released in 2012, introduced by Chris Larsen and Jed Mc Caleb, Ripple(XRP) is considered to be the best digital asset for global payments. According to its official website, it aims to provide a better payment experience and enable more significant economic opportunities all around the globe. It is a digital payment protocol that operates on an open-source, decentralized, P2P network, allowing seamless money transfer.
This cryptocurrency is known as one of the fastest and secure blockchains as XRP can process 1500 transactions per second with an average ledger settlement (approval time) of 3-5 seconds.
It is a Blockchain-based decentralized platform that enables the execution of decentralized applications (dApps).
Designed to support large-scale applications, it is a cryptocurrency that aims to build a decentralized blockchain to process seamless and free transactions. Instead, it rewards the entities that run the network with new EOS, completely substituting inflation for transaction fees. Since EOS claims to beer faster, more scalable, and provides greater and more advanced services, Blockchain Developers and technocrats believe it is a rival of Ethereum.
EOS can process about 4000 transactions per second with an average confirmation time of 0.5 seconds or 500 milliseconds.
Neo is an open-source blockchain-based platform founded in 2014 by Da HongFei and Erik Zhang. It is a platform that supports its own cryptocurrency. It enables the development and management of digital assets and smart contracts with the eventual aim of building a distributed network-based smart economy system. Considering the platform’s scalability and potential, it is believed that by 2023, this digital currency will be one of the most widely used cryptocurrencies and might reach as high as $437 by the end of 2023.
NEO can process 1000 transactions per second with an average confirmation time of 15 Seconds.
Cardano is an open-source, decentralized public blockchain platform with having proof of stake consensus system. It is in direct competition with Ethereum providing peer-to-peer transactional networks. Its token ADA is currently holding rank three among all the cryptocurrencies as per the market capitalization. It was launched in 2015 by Charles Hoskinson, who is the co-founder of Ethereum. It creates a network having more security and transparency while making transactions. Recently we have observed a tremendous hike in the rates of Cardano and Cryptocurrency experts who believe that it can reach up to $5.00 by the end of 2021.
ADA can process about 1 million transactions per second (TSP).
Solana was developed and launched by Anatoly Yakovenko in 2017. It is a blockchain technology utilized for facilitating decentralized applications (Dapp). Also, it addresses the scalability issues and introduces the Proof of history consensus algorithm. It is also known to be the most efficient cryptocurrency. Solana Hybrid’s protocol focuses on reducing the transaction time of the network. It decreases the validation time of both smart contracts execution and transactions.
SOL claims to process 50,000 transactions per second with an average confirmation time of around 5 minutes.
An open-source financial network, helping financial firms connect to blockchain technology. It is a decentralized protocol offering low-cost digital money transactions. Jed McCaleb and Joyce Kim initially developed it on July 31, 2014.
Steller is one of the fastest cryptocurrencies, with an average confirmation transaction confirmation time of 3-5 seconds.
Tron was developed in 2017 by a Singaporean organization called Tron foundation. It is a blockchain-based decentralized platform primarily used for hosting entertainment applications. It has its currency token TRX, which has a high transaction speed. Also, there is no transaction fee charged to the users. Also, it is capable of sending and receiving millions of dollars worldwide.
TRX is capable of processing 2000 transactions per second.
Cosmos is an internet of blockchains, decentralized network with Proof of Stake consensus algorithm. It offers customizability and interoperability, which makes Cosmos different from other currencies. Cosmos allows data exchange between different blockchains. The purpose of creating this internet of blockchains is to resolve the scalability issue.
Cosmos (ATOM) can process 10,000 transactions per second with an average confirmation time of 2-3 Seconds.
Proposed in late 2013 by Vitalik, it is an open-source, blockchain-based distributed computing platform featuring smart contract functionality. Ether, launched in 2015, is presently the second-largest digital currency by market cap after bitcoin. It allows entities to send ETH without any intermediary service like a bank, thus protecting users’ wallet, ETHs, and their transactions.
ETH can process 20 transactions per second with an average confirmation time of 5 minutes. However, Ethereum Classic (ETC) takes two weeks to confirm around 80,640 transactions. Ethereum 2.0 will have shard chains, due to which it claims to conduct up to 24,000 transactions.
Bitcoin might not have a significantly higher transaction speed than others, but we definitely cannot leave it out of the list. It is the first-ever cryptocurrency that is known for its popularity. Despite several cryptocurrencies, this digital currency still remains the leading digital crypto-asset introduced by the presumed pseudonymous Satoshi Nakamoto. The infrastructure built around BTC has shown immense maturity over recent years, making it easier and far safer to invest than ever before. On 14 April 2021, BTC witnessed an all-time high of $64,863.10. Cryptocurrency Experts believe that BTC will hit $100,000 by the end of December 2021.
If we talk about the Bitcoin network, the average confirmation time for a BTC payment is approximately 10 minutes, and it can process a maximum of 7 transactions per second.
Waves is the blockchain platform that is used to create decentralized applications (DApps) and smart contracts. It was launched in June 2016 as an initial coin offering ICO. The purpose of this blockchain platform is to improve some issues which occurred in the first blockchain platforms. The improvement included increased speed, user-friendliness, and utility.
Waves offer throughput of 100 TPS with an approximate confirmation time of 2-10 seconds.
Algarantd is an open-source, decentralized blockchain-based cryptocurrency platform offering secure and scalable networks. It enables smart contracts and works on proof of stake consensus algorithms. It was launched in June 2019 by MIT professor and computer scientist Silvio Micali. The purpose of creating Algorand is to focus on financially driven networks having instant transaction facilities.
Algorand throughput of 1000 TPS with approximately a confirmation time of 45 seconds.
It is an umbrella platform that supports decentralized finance (DeFi) applications, trading, financial assets, and other services. It allows the launch or trade of any type of digital assets which will be utilized to create DApps. Also, The AVA developers claim that Avalanche is the first smart contract network that offers a final transaction in just one second.
Avalanche offers a throughput of 5000 TPS with an average confirmation time of 1-2 sec.
It is an open-source distributed ledger that offers great speed as compared to other blockchains. It was specially designed for the internet of things (IoT) platform. Also, it offers transactions without any fees at high speed.
IOTA offers a throughput of 1500 TPS with an approximately a confirmation time of 1-5 minutes.
As discussed above, you must be aware of several cryptocurrencies offering the fastest crypto transfer feature. Due to its high transaction speed, transparency, immutability, security, and privacy, Blockchain is shaping the internet and the entire world through its enormous potential. But the issue related to Blockchain’s scalability is the prime reason this technology hasn’t become mainstream yet. Whenever debate about blockchain scalability heats up, technical specifications like transaction speed always come up. The day technology will resolve scalability and transaction speed issues; Blockchain will become mainstream adoption, and so will the cryptocurrencies. Yet many cryptocurrencies have the fastest transaction speed, which we have discussed above in this article.