Interest in cryptocurrency has a strong focus on one area: price. How much is it? Will the price go up? Should you invest in cryptocurrency? But this ignores another important aspect of cryptocurrency.
How fast are transactions completed? Also, how many transactions can the network handle? Oh, and is it scalable?
Questions on the lips of cryptocurrency users, not just speculative investors, relate to the underlying technology, and not just the price.
What is the fastest cryptocurrency network?
Cryptocurrency capacity and transaction speed are really important. What for? Well, if cryptocurrencies are to compete directly with payment services, the speed and volume of transactions should at least start to match their competitors.
Fastest Fiat Networks Fastest и scalable. The Visa network processes a couple of thousand transactions every second every day, with the ability to scale up to 24 transactions per second (tps).
High bandwidth The amount of transactions per second is not just another number. High bandwidth allows the network to keep transaction prices low because it has sufficient resources to process more transactions per unit of time.
— #FinancialFreedom – Mastering Your Money (@MoneyMasterX) December 9, 2019
How about Bitcoin? Bitcoin is idle, processing about six transactions per second ... Given the technological frustration of buying and storing Bitcoin and then waiting for an hour for a transaction to be confirmed, you can see why Bitcoin is far from the level required for currency transactions.
This does not mean that it cannot be used in this way. There are only a few quicker options available.
However, the downside is that some of the supposedly fastest cryptocurrency networks have never experienced the necessary power to test their claims of transaction speed superiority. Estimating the speed of transactions using a private blockchain testnet That's good, but how does the network hold up under real-world use?
1.EOS
1,5 with per transaction | Theoretical network capacity 50000 t / s | Very Low transaction fee
EOS is a blockchain protocol that emulates an operating system. The protocol aims to support industrial-scale decentralized applications and solve the scalability issues faced by other blockchains such as Ethereum and Bitcoin.
EOS is incredibly fast transaction times and low transaction fees. Moreover, the main goal of EOS is to eliminate transaction fees from its blockchain, providing a super-fast free smart contract platform for large industrial organizations.
2. Futurepia
Theoretical capability 300 000 t / s | Extremely low transaction fee
Futurepia is a blockchain specifically designed for extremely high volume traffic. Dubbed "EOS Killer", Futurpia's mainnet is targeting social media DApps through a combination of fast transaction processing and very low transaction fees.
The Futurepia blockchain uses an innovative DDPoS consensus algorithm that solves many of the scalability and usability problems of transaction processing found in other blockchains. The attractive 300 t / s figure comes from the Futurepia test network but has not yet been replicated on the Futurepia network.
3. Steem
3 with per transaction | Theoretical network bandwidth 10 000 t / s | No transaction fee
Steem is a cryptocurrency that powers the social media platform, Steemit. Users post original content on the platform and receive Steem tokens in exchange for their contributions. Users also earn Steem rewards for commenting on content, creating a cryptosystem based on original user-generated content.
Steemit itself is a real blockchain built using a technology known as graphene. Graphene is an open source modular blockchain that allows the development of applications with very specific features. The theoretical throughput of a graphene transaction is 100 t/s.
4. XRP
4 with per transaction | Theoretical power 50000 t / s | Very low transaction fee
XRP is the cryptocurrency of the Ripple payment network ... Ripple's goal is to reduce cross-border problems of international payments, banking and remittances through a distributed ledger. Ripple uses an "interledger protocol" that allows parties to settle their accounts across different systems using the Ripple token, XRP.
Ripple and XRP are not without controversy. Depending on who you ask, you will hear that XRP is not a real cryptocurrency. This is because XRP is pre-mined by Ripple Labs. Ripple Labs then distributes the token as they see fit. XRP is not decentralized in this. In addition, it uses very few nodes to negotiate transactions, which contributes to the removal of the network and protocol from other cryptocurrencies.
However, it remains a popular choice because of its fast transaction times, the potential for scaling, and the demonstrative increase in network capacity while maintaining transaction costs and processing time.
5.Stellar
5 with per transaction | Theoretical network capacity 10 000 t / s | Extremely low transaction fee
Stellar is a decentralized “platform that connects banks, payment systems and people.” Thus, Stellar is a blockchain protocol that allows people to quickly and cost-effectively move money from one place to another.
For a while Stellar has offered a very similar feature set to XRP. This is because Stellar is a hard fork of the XRP protocol. The Stellar developers have taken Ripple Labs in a different direction, focusing mainly on closing security holes in the XRP platform. At the same time, the Stellar developers have taken the open source platform, unlike Ripple.
The switch to open source has certainly increased the popularity of Stellar and its Lumens currency, along with a changing approach to sequentially releasing more Lumens into the ecosystem (while Ripple labs strictly control how much and when more XRP releases to users).
Due to its high transaction speed, Stellar is one of the cryptocurrencies you can use in brick and mortar stores
6.Nano
5 with per transaction | Theoretical power 7000 t / s | No transaction fee
Nano, formerly known as RaiBlocks, pays great attention to solving the scalability problem faced by the Bitcoin and Ethereum blockchains.
Instead of using a single massive blockchain with multiple inputs, Nano uses what is known as a block-grid architecture. In blockchain terms, the block lattice architecture means that each account uses its own blockchain, which greatly speeds up the transaction process. Individual account blockchains can be updated at any time before being aligned with the Nano's main blockchain.
The Nano block architecture allows the cryptocurrency to expand. In addition, enhancements to the underlying technology should increase Nano's theoretical network transaction throughput by 7000 tons per second - all without a transaction fee.
7. NEM
3-5 with per transaction | Theoretical network bandwidth 4000 + tps | Low transaction fee
NEM is a popular smart asset blockchain. Built with scalability in mind, the NEM blockchain can process up to 4000 transactions per second. The platform is also very welcoming to new developers to create DApps, especially those with no development experience.
NEM failed in January 2018 when 500 million tokens were stolen from the Coincheck exchange. As a result of the hack, which is one of the largest for cryptocurrency hackers, the price of NEM has dropped by more than 20%.
Are Bitcoin and Ethereum Fast Cryptocurrencies?
The cryptocurrencies listed here represent some of the fastest cryptocurrency transaction processing networks. It is not comprehensive; I am sure readers will quickly recommend ICON, Ardor, Spectrecoin, NEO and other crypto platforms with fast transaction and scalable transaction processing.
You've probably noticed that the main players, Bitcoin and Ethereum, are nowhere to be seen. Bitcoin and Ethereum cannot compete with the alternative cryptocurrencies on this list.
Indeed, in many cases, ultra-fast cryptocurrencies and blockchains are specifically designed to challenge the dominance of established platforms, whether it is transaction speed, volume of network transactions or transaction costs.