- What is TPS and how is it related to blockchain speed?
- The pursuit of high speed cryptocurrency transactions
- Which cryptocurrencies are the fastest?
- Left (LEFT)
- Ripple (XRP)
- Ethereum 2.0
- Algorand (ALGO)
- Phantom (FTM)
- Cosmos (ATOM)
- Avalanches (AVAX)
- Cardano (ADA)
- EOS.IO (EOS)
- Polygon (MATIC)
- Bitgert (BRISE)
- Does blockchain speed matter?
In this age of one-click shopping, we want everything at once. We are accustomed to almost instantaneous fulfillment of everything from digital goods to ordering physical goods over the Internet. The cryptocurrency space is no exception. Investors, developers, and general users find faster transactions more desirable as they create a more enjoyable user experience. As a result, speed is an important criterion for determining the potential of a crypto project.
In this article, we will look at the transaction per second metric, how it affects the speed of the blockchain network, as well as the 11 fastest blockchains.
What is TPS and how is it related to blockchain speed?
TPS (or Transactions Per Second) is the number of transactions that a blockchain network can complete in one second. It reflects the speed of the blockchain as it shows how scalable and fast the network is. TPS is also called throughput.
However, TPS is not the only parameter that determines the speed of the blockchain. Transaction completion time (the time it takes for the transaction to be validated) is equally important. Together, these parameters characterize the scalability of the blockchain network, that is, the ability of the network to process an increasing number of transactions.
Scalability is a hot topic in blockchain as lack of scalability is a significant stumbling block on the road to wider adoption of blockchain technology.
The pursuit of high speed cryptocurrency transactions
The main challenge for blockchain innovators is to maintain high transaction speed, decentralization and security at the same time. Ethereum co-founder Vitalik Buterin called this problem the “blockchain trilemma.”
Both the efficiency of a blockchain network and its overall optimal user experience depend on scalability. Therefore, most recent projects are looking to implement various innovative systems to increase network bandwidth and thus put scalability over decentralization and security. However, several blockchain projects have made commendable attempts to solve the blockchain trilemma.
Which cryptocurrencies are the fastest?
Blockchain developers have always struggled to consistently achieve the trio of decentralization, security, and scalability. However, scalability is the most desirable as it is the key to mass adoption of the technology. With that in mind, here are eleven blockchains with one of the highest TPS rates.
Blockchain Solarium (SOL) has been around since 2017 and is one of the fastest chains with a transaction rate of 3 TPS (theoretically up to 000). The highly scalable Solana blockchain achieves this impressive speed with a hybrid Proof of History (PoH)/Proof of Stake consensus mechanism (PoS).
Even more impressive is the block completion time in Solana − 21 to 46 seconds. The finality time describes the time it takes for a blockchain transaction to be confirmed to be immutable (i.e., it cannot be changed). Completion time is just as important as transaction throughput in determining the speed of transactions and therefore the scalability of the network. Due to its high bandwidth, Solana has low fees and even lower network congestion, making it an attractive protocol for running DApps, games and, more recently, NFTs (non-playable tokens).
Ripple (XRP), a blockchain-based alternative to cross-border payment systems such as SWIFT (Society for Worldwide Interbank Financial Telecommunication), boasts a transaction speed of 1 TPS, which can conceivably be increased to 500 TPS.
Designed to rival the transaction speeds of traditional cross-border payment systems, Ripple charges $0,0003 per transaction (compared to $15-$20 per SWIFT transaction) and takes 3 to 5 seconds to complete, improving overall network efficiency. XRP relies on a network of trusted nodes that requires 80% consensus before a transaction can be processed and confirmed. This unique method called into question its decentralization.
However, thanks to its high speed and low fees, Ripple is already accepted by many banks in the world to facilitate international money transfers and transfers.
Ethereum 2.0 (also known as Serenity), when it finally launches, should be one of the fastest cryptocurrencies in the world with a TPS of 100, much more than the current 000-12 TPS. Ethereum 15 is currently under development and is predicted to be launched in early 2.0.
The current goal is to make Ethereum faster, cheaper and cleaner. Ethereum will move from the proof-of-work (PoW) consensus on which it is currently built to a highly scalable proof-of-stake (PoS). Ethereum 2.0 also aims to bypass scalability, decentralization and security issues through the use of sharding. In short, Eth2 is predicted to bring important changes to the current Ethereum ecosystem, making it more scalable, secure, and resilient.
Blockchain Algorand is a secure and scalable network built to support a variety of applications. Launched in 2019, Algorand is known for its high throughput, averaging 1 TPS with a declared potential power of 3 TPS. The block completion time is also impressive: transaction verification is completed in about 5 seconds.
Algorand uses a pure proof-of-stake (PPoS) consensus mechanism, randomly selecting and rewarding miners who confirm transactions to ensure a fair environment. This mechanism allows Algorand to achieve decentralization while maintaining high TPS speed.
Algorand has the bandwidth and scalability needed to support a wide range of use cases on a global scale. Many DApp and DeFi developers are turning to this network to avoid the high fees and congestion of Ethereum.
Fantom is one of the fastest networks on this list. In addition to speed TPS at 25, the protocol has a block completion time of about 1 second. For perspective, compare this time with 21-46 seconds for Solana and 60 seconds for Ethereum.
The Smart Chain-enabled Fantom Network uses Directed Acyclic Graph (DAG), a distributed ledger technology consisting of a computer network that executes transactions in parallel. To confirm transactions, each computer in the DAG "gossips" about its transactions to random neighboring computers, which repeat similar actions, instantly propagating the transaction throughout the network. This system is responsible for the high throughput of the Fantom network and virtually unlimited scalability.
Fantom also uses Ethereum virtual machine (EVM), which makes it compatible with Ethereum. As a result, it will be easy for Ethereum developers to deploy DApps on the Fantom network. With its lightning-fast speed and multiple developer-focused incentive programs, Fantom certainly has bright prospects as a DApps platform.
Network Cosmos (ATOM), designed with a focus on personalization and interoperability, has an enviable reputation as the blockchain internet. She can handle more 10 transactions per second and has an average completion time 2-3 seconds.
Cosmos implements consensus (PoS) and relies on a robust technology stack consisting of:
- Tendermint: A consensus mechanism that allows developers to build a scalable, fast, and secure blockchain network.
- Inter-Blockchain Communication Protocol (IBC): A system that connects disparate blockchains.
- Cosmos SDK: A popular framework for building DApps on top of the Tendermint blockchain.
Due to its high scalability, interoperability, and ability to create smart contracts, Cosmos has become popular with developers building powerful cross-chain DApps. Among the most popular are Anchor, chainweaver, Klever and Flare.
Avalanche Network, one of the fastest blockchains, supports smart contracts and has an impressive performance of 4 TPS.
4 TPS, and the block completion time is 500-1 seconds.
Avalanche's unique approach to solving the blockchain trilemma is to use a PoS mechanism and a unique system of three blockchains within its ecosystem. Each blockchain is focused on a specific purpose. Exchange Chain is an exchange blockchain that allows you to trade assets; Contacts Chain allows developers to create decentralized applications; The Platform Chain keeps track of the validators that manage the Avalanche subnets.
Thanks to its high throughput and low fees, Avalanche's goal of creating a simple and single global marketplace for frictionless asset trading has largely succeeded. Therefore, the multi-chain project is predicted to become the leading blockchain for financial services in the economy. web 3.0.
The transaction speed is 250 TPS, and the completion time is 5-10 minutes. Cardano's transaction speed may not be on par with some of the others on this list, but it is on par in terms of security and community engagement. Cardano (ADA) is an open source decentralized blockchain built for smart contracts applications such as DeFi applications, games, cryptocurrency tokens, and more.
Cardano uses Ouroboros, a unique, power-efficient PoS consensus. The network randomly selects validators in proportion to their stakes in order to be able to create new blocks. The Cardano chain consists of two layers - the Cardano Compute Layer (CSL) and the Cardano Compute Layer (CCL) - to provide scalability.
The Cardano ecosystem hosts a wide range of DeFi and NFT applications, including SundaeSwap, a decentralized exchange, and MELD, a trustless lending protocol.
Cardano is currently developing a layer XNUMX solution that will increase throughput to approximately
1 TPS and reduce completion time to less than one second. This upgrade, when implemented, will place Cardano among the most scalable blockchains.
EOS is a blockchain-based network optimized as a platform for DApps. Therefore, it has a high throughput in 4 TPS, which allows you to serve a huge volume of transactions. But it can get better: EOS transactions are completed in 2-3 seconds, making EOS.IO one of the fastest blockchains.
To achieve Formula 1-like speed, EOS uses delegated proof-of-stake (DPoS) consensus, which involves verifiers (called witnesses) reaching consensus on the next verifier to verify a transaction. The power of each witness's vote is proportional to his stake. However, this unique voting system has led to accusations of centralization, as multiple block producers hold the majority of votes.
With high scalability, low latency, and senseless transactions, the EOS chain will be the future platform for initiatives Web 3.0. It offers fertile space for a growing network of DApps and services such as pEOS, Upland, EOS Dynasty, Scatter and Newdex.
Polygon (MATIC) is a blockchain that aims to scale the Ethereum network by supporting many scaling solutions, including second layer solutions and sidechain. It boasts high throughput in 7 TPS (theoretically up to 65) and a completion time of 000-2 seconds. Polygon provides security support for other blockchains and links the various chains to its ecosystem while handling the connection between participating Polygon chains and Ethereum chains. Polygon offers a platform for running Ethereum DApps on a linked blockchain system while maintaining the network security of Ethereum and other first-tier chain benefits.
With its ultra-fast speeds and low fees, Polygon is attracting developers who are annoyed by the high gas fees and low bandwidth of Ethereum. An increasing number of well-known gaming platforms, decentralized exchanges, and DeFi applications are using the Polygon network.
Bitgert was launched on February 14, 2022, making it the newest project on this list and arguably the fastest. Bitgert handles colossal 100 transactions per second and block completion time is 000 seconds. Combined with this incredible speed, transaction fees on Bitgert are negligible, averaging $0,00000001.
Bitgert is built on top of the Binance Smart Chain (BSC) protocol and uses the Proof of Authority (PoA) consensus used in BSC. The high throughput achieved by Bitgert is due to this consensus mechanism, which allows validators to stake not on coins, but on their reputation.
Without a doubt, Bitgert is the next big thing in the crypto industry. The project is on its way to
exponential growth thanks to near-zero gas fees and lightning-fast transactions. Since its recent launch, it has already hosted numerous NFT, DeFi, metaverse, and DApp projects.
Does blockchain speed matter?
Speed is paramount in an era of instant gratification and short attention spans, especially in financial transactions. However, recent developments in the cryptocurrency space have shown that decentralization and security are equally vital.
An example is the series of failures that the Solana network encountered.
The last of these occurred on May 1, 2022. Solana network validators were unable to create new blocks for more than four hours, and applications on the Solana blockchain went offline. How did it happen?
With a throughput of 50 TPS and an average cost of $000 per transaction, NFT and DeFi developers have flocked to the Solana blockchain. The network saw a lot of traffic caused by bots trying to trade NFTs, which in turn overloaded the nodes of the network. The cause of one of the previous failures was also cited as a "bug". These incidents demonstrated the negative consequences of the trade-off solution adopted in the network, when security and stability are sacrificed in exchange for speed.
Another incident that took place on the EOSIO network also highlights the difficulties of the blockchain trilemma. EOS has frozen seven accounts on suspicion of possible theft. However, this action was met with heavy criticism as the decision was made by only 21 elected block producers, casting doubt on the decentralization of the network.
While transaction speed is important, security and decentralization are just as important. After all, it is on them that the development of blockchain technology is primarily based.
Transaction speed is an important metric for the widespread use and adoption of blockchain technology. The blockchains listed above have demonstrated significant scalability, which is an important requirement for the blockchains of the future. However, the blockchain that will rule Web 3.0 must support reasonable transaction rates without sacrificing security and decentralization.