Which is the Fastest Cryptocurrency?

Cryptocurrency is now a global phenomenon that has enjoyed so much attention in virtually every sphere of human existence. From politics to banking, and even space shuttle, big corporations are now accepting digital coins as a form of payment for their products and services. With the number of digital currencies in the crypto space, there are different features that distinguish each coin from the other. One of such differences is transaction speed. These coins all try to outdo one another with their transaction speed. We shall take a look at some of the top cryptocurrencies with the fastest transaction speed!

How To Measure A Cryptocurrency’s Transaction Speed

The transaction speed of a cryptocurrency is its ability to process a transaction and store its data. In other words, it is the time it takes for a Blockchain transaction to be verified. The transaction speed is usually measured in minutes. It is important to ascertain the transaction speed of a cryptocurrency mainly because:

• It enables you to know how fast your transaction will be confirmed and recorded so it becomes irreversible. The longer the transaction time, the higher the chance of fraud;
• It enables you to know how soon you can spend your coin.

In calculating the transaction speed of a cryptocurrency, you need to know how big each block is, the average transaction time, and how frequently a new block is added to its Blockchain. You can measure a cryptocurrency’s transaction speed by multiplying the number of block verifications required by a Blockchain to confirm a transaction by the time it takes for a new block to be added to the same Blockchain.

Blockchain Trilemma

The Blockchain trilemma was proposed by Vitalik Buterin. It simply means that there are three main issues designers face when building Blockchains. These issues include security, decentralization, and scalability. Usually, one of these issues is sacrificed to accommodate the other two in the Blockchain.

Cryptocurrency speed is related to Blockchain trilemma mostly in terms of scalability because that is the ability of a Blockchain to accommodate a higher volume of transactions. This is dependent on how fast it can confirm every transaction on the Blockchain.

Transaction Verification Time Versus Actual Transaction completed

Cryptocurrency transaction verification time refers to the duration of time in which a cryptocurrency transaction is verified as a legitimate transaction. During a transaction verification time, a transaction can fail and the payment will be reversed. Sometimes, crypto transactions may fail due to several reasons such as low fees and network congestion.

On the other hand, an actual transaction completed refers to successful transactions. In order words, such transactions have been verified and recorded on the Blockchain and your payment will be processed and become irreversible.

How Much Speed Does Speed Matter When It Comes To Crypto Transactions

Speed is a very important factor in crypto transactions because it is what determines the level of adoption by crypto users. The speed of a cryptocurrency transaction makes users feel secure and it helps eliminate transaction issues like money hanging. This is what makes cryptocurrency more desirable than traditional banks.

How Can Crypto Become Faster

Every cryptocurrency has a designated number of computers connected to its network spread across the globe that is responsible for confirming transactions. A cryptocurrency transaction speed is determined by the number of transactions on the designated network. To increase the transaction speed, there must be a reduced number of transactions per second to a number the systems can handle. Another way is to reduce the number of computers connected to a network. A change in the consensus mechanism to ensure that fewer computers are needed to confirm transactions.

Future Of Digital Transactions

Digital transactions have evolved recently, especially with the increased acceptance of cryptocurrencies. With more people becoming tech-savvy and smartphone penetration is gaining ground, digital transactions will soon be the order of the day. The future of digital transactions could mean more cryptocurrency payments, voice-activated payments, and biometric payments.

For crypto transactions, it has been said that a big change is looming with more institutions accepting cryptocurrency as a means of payment. There is also the possibility that crypto will be floated on the NASDAQ which will mean more traction for digital currencies and a better alternative to conventional currencies. One major way this will be possible is with the use of stable coins. Stablecoins are quite different from mainstream cryptocurrencies because they are not subject to market fluctuations as they are backed by assets like the US Dollar or Euro. They can be used for transactions and smart contracts. Some of the popular stable coins include USD Coin, Tether, and TerraUSD.

Here Are Some of The Fastest Cryptocurrencies In The Crypto Space

Bitcoin – Bitcoin is the first and most popular cryptocurrency but not the fastest. It is the largest cryptocurrency in terms of market cap and the most valuable cryptocurrency in the crypto space. Bitcoin transaction speed is about 3 to 7 transactions per second with a confirmation time of about 15 minutes. The duration for actual transaction finality is between 30 to 60 minutes. Bitcoin is the most popular cryptocurrency that is available in almost every crypto exchange platform like Coinbase, Binance, Kraken, and eToro.

Ripple – Ripple was a cryptocurrency that was created to serve mainly institutions. It is one of the top ten cryptocurrencies. Ripple is capable of 1,500 transactions within 3 to 5 seconds. This is one of the fastest transaction times in the crypto space.

Cardano – Cardano is quite similar to Ethereum with its peer-to-peer transaction networks. It is the third-largest cryptocurrency in terms of market capitalization. Cardano is capable of processing over 250 transactions per second with a transaction finality time of 10 minutes.

Ethereum – Ethereum is one of the earliest cryptocurrencies to be created and is one of the most popular cryptocurrencies. Ethereum can process up to 20 transactions per second with a confirmation time of 5 minutes. Ethereum has an actual transaction finality time of 25 minutes. Ethereum’s transaction speed is one of the fastest in the crypto space.

Solana – Solana is one of the fastest cryptocurrencies in the crypto space at the moment. It is more than just a cryptocurrency as you can build apps on its Blockchain. It is oftentimes accused of sacrificing speed for security. Sold a is capable of processing 50,000 transactions per second.

Stellar Lumens – This is an open network that allows you to move and store your money. Stellar can process 1,000 transactions per second with a transaction finality time of 4 seconds.

Litecoin – Litecoin which was created in 2011 is the second cryptocurrency to ever exist. The transaction speed of Litecoin is 56 transactions per second with a transaction finality confirmation time of 30 minutes. Litecoin circulation is four times more than Bitcoin and its transaction speed is 4 times faster than that of Bitcoin.

Bitcoin Cash – Bitcoin cash was launched in 2017 as a fork of Bitcoin to facilitate smaller and faster payments. It has the capacity to process 300 transactions per second with a transaction finality time ranging from 60 to 180 minutes.

Fastest Blockchain Available

Some of the cryptocurrencies mentioned above are Blockchains technologies that have the same transaction time. Below is a list of other Blockchains with fast transaction time.

1. EOS – The EOS Blockchain is a decentralized operating system that is used to develop, run and host business applications and DApps. The system architecture is known as EOS.IO and its cryptocurrency is also known as EOS. It supports secure access and permissions, authentication, hosting, usage management, data, and communication between DApps and the internet. EOS can process up to 2,800 transactions per second and a confirmation time of 0.5 seconds.
2. NEO – This is an open-source Blockchain with its cryptocurrency and smart contract platform. NEO can process up to 1000 transactions per second with a confirmation time of under 15 seconds. This has earned it the nickname of Chinese Ethereum because of its speed and use cases.
3. ICON – This is a Blockchain technology that allows independent Blockchains to interact with each other. The ICON network has a decentralized exchange platform. ICON can process up to 9,000 transactions per second with a transaction time of 20 minutes.
4. ONTology – ONTology is regarded as a high-performance open-source Blockchain that specializes in decentralized identity and data. ONTology has the capacity to process 5,300 transactions per second with a transaction time of 10 minutes.
5. TRON – This is also a decentralized Blockchain technology with a smart contract functionality, proof of sake principles, and a cryptocurrency known as Tronix. TRON can process 2,000 transactions per second with a transaction finality time of 5 minutes.

Our Conclusion

Cryptocurrency transaction volume and time vary from each other, depending on the Blockchain technology. Apart from the market value of each cryptocurrency, transaction volume and time is another distinguishing factor between the numerous cryptocurrencies that are in the crypto space. A cryptocurrency is deemed fast if it has both a high transaction per second and a low verification finality time. Therefore, it is important to research the transaction speed of any desired cryptocurrency to avoid any issues. Various cryptocurrencies are actively trying to shorten their transaction speed to attract more users. The implication of this is that the future is bright for crypto transactions.

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