Are you a crypto enthusiast? Wondering which cryptocurrencies have high transaction speeds? This article talks about Blockchain’s transaction speed, and also details top cryptocurrencies with high transaction speeds.
Table of Contents
- Blockchain: Underlying Technology Behind Cryptocurrency and Why does its Transaction Speed Matter?
- Top 5 Cryptocurrencies and Their Transaction Speeds
- Concluding Lines
Blockchain: Underlying Technology Behind Cryptocurrency and Why does its Transaction Speed Matter?
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.
Transaction speed is one of the prime factors in Blockchains. 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 are transacting has high network congestion, huge volume, and increased transaction fees.
Top 5 CryptocurrenciesThat Have 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 has a goal of being better, faster, more scalable, and providing greater and more advanced services, Blockchain Developers and technocrats believe that it is a rival of Ethereum.
EOS can process 2800 transactions per second with an average confirmation time of 0.5 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 can conduct up to 10,000 transactions per second.
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 and 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 its potential, it is believed that by the year 2023, this digital currency will be one of the most widely used cryptocurrencies and might reach as high as $437 USD by the end of 2023.
NEO can process 1000 transactions per second with an average confirmation time of 15 Seconds.
Bitcoin might not have a very 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 13 March 2021, BTC witnessed an all-time high of $61,556.59. 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.
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 why 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 the cryptocurrencies.