Transaction speeds vary depending on the cryptocurrency.
In this quick post you’ll the basics about blockchain transaction speed. Also, take a look at the chart of top cryptocurrencies with the quickest transaction time.
Top Cryptocurrencies with the Fastest Transaction Speed
When it comes to day trading, transaction speed is crucial. The quickness with which money is moved from one address to another is shown by the transaction speed.
Because there are so many cryptocurrencies, it’s difficult for a person to understand them all. Different currencies are sent at different speeds, making matters worse.
Learn what affects transaction speed and which coins have the quickest transactions.
What Is Blockchain Technology?
Let us have a look at how the entire system works to understand how a transaction is carried out in the blockchain and what it depends on. So, let us begin with the basics: the blockchain.
The blockchain is a distributed ledger technology that operates in a decentralized manner.
The blockchain was developed for the financial sector to register transactions in cryptocurrency, but it is now being used in a variety of industries.
Blockchain funds transfers were supposed to be faster, less expensive, and more convenient than bank transfers.
What Is Transaction Speed and Why Does It Matter?
One of the most significant features of any blockchain is its transaction speed.
The greater a blockchain`s transaction speed, the more effectively it may transmit data and confirm transactions on the network.
Depending on a number of elements, including:
- Slow transactions are most likely caused by the network congestion, which may be defined as a higher level of traffic on the networks.
- The transmission of a large amount of data slows down the transaction speed.
- Transaction costs might also have an impact on the transaction speed.
Which Cryptocurrencies Have the Fastest Transaction Speed?
Now it’s time to look at cryptocurrencies with the shortest transaction time.
While there are several new crypto projects that claim to be able to handle up to a million transactions per second, we’d like to highlight those that have been around for a while and have already proven their worth in the long run.
1.Ripple
Ripple was founded in 2012. The project’s goal was to provide banks and other financial institutions with a more efficient, cheaper, and safer way to move money.
Ripple is a cryptocurrency that has a rapidly quick transaction speed due to the use of xCurrent. The Ripple blockchain handles around 1,500 transactions per second, with a transaction approval time of 3 – 5 seconds on average.
2.EOS
EOS is a blockchain-based decentralized platform. It’s used for the creation and execution of DeFi (decentralized apps). Its blockchain was created to support large-scale applications. It is capable of processing 2,800 transactions per second.
Some people think that the EOS project is a competitor to Ethereum because of its advantages, such as faster transactions, greater scalability, and more sophisticated services.
3.ETH
Ethereum is a blockchain-based distributed computing system. It enables smart contracts and DeFi. The Ethereum project was founded in 2013, but Ether did not exist until 2015.
Ether is the currency of the Ethereum ecosystem, which is powered by Ether. In terms of market capitalization, Ether ranks second to Bitcoin among all cryptocurrencies currently available.
The Ethereum blockchain, on average, processes around 90,000 transactions each week (nearly 10 transactions per second on average). According to reports, the Ethereum 2.0 upgrade is going to handle up to 10,000 transactions per second.
4.NEO
NEO is a blockchain-based platform that is open source. The NEO blockchain supports smart contracts and various forms of digital assets. It aims to establish a distributed smart economy system in the future.
With an average transaction settlement time of 15 seconds, the NEO blockchain can process around 1,000 transactions per second.
5.DASH
Masternodes are a type of decentralized system that allows certain nodes on the network to perform specialized tasks.
Dash was one of the first cryptocurrencies to popularize the idea. The processing speed of Dash is 56 transactions per second, with an average transaction settlement time of approximately 2 minutes.
Bitcoin (Just for a point of reference)
If you believe that Bitcoin doesn’t have the quickest transaction speed, you’re correct. However, because it is the first and biggest cryptocurrency, it’s a good reference point for us to use when comparing other coins.
The transaction speed of Bitcoin, according to some sources, is 7 transactions per second, and one transaction takes around 10 minutes to complete.
Quick recap of the cryptocurrencies with fastest transaction speeds
- EOS – 2,800 tx/second
- Ripple – 1,500 tx/second
- NEO – 1,000 tx/second
- DASH – 56 tx/second
- ETH – 10 tx/second now then 10,000 tx/second after Ethereum 2.0 is deployed
- Bitcoin – 7 tx/second