All cryptocurrencies have a different transaction speed. Find out everything about blockchain transaction speed. Also, check the overview of top cryptocurrencies with the fastest transaction time.
Top Cryptocurrencies with the Fastest Transaction Speed
When you are looking for coins to day trade, transaction speed matters. The transaction speed shows how fast money is transferred from one address to another. Different coins are sent at different speeds which might be confusing for a beginner. Learn what the transaction speed depends on and which coins have the fastest transaction speed.
What Is Blockchain Technology?
To understand how a transaction is performed in the blockchain and what it depends on, let us have a look at how the entire system works. So, we start with the basics, the blockchain. The blockchain is a decentralized distributed ledger technology. While now blockchain is used in many fields, initially it was created for the financial industry to register transactions in cryptocurrency. Funds transfers in the blockchain were supposed to be faster, cheaper, and in general more convenient than bank transfers.
What Is Transaction Speed and Why Does It Matter?
Transaction speed is one of the main features of any blockchain. The higher the transaction speed is, the higher is the blockchain`s ability to transfer data (yep, it is not only about money) and confirm transactions on the network.
Transaction speed depends on several factors the main of which are:
The network congestion - a higher level of network congestion might lead to slower transactions. Huge volumes of data sent also slow down the transaction speed. Increased transaction fees negatively influence the transaction speed, too.
Which Cryptocurrencies Have the Fastest Transaction Speed?
Now, it is time to check out cryptocurrencies with fastest transaction time. While there are many new crypto projects that claim to be able to handle up to some million transactions per second, we would like to pay attention to the cryptocurrencies that have been around for a while and have already proven themselves as valuable in the long term.
Ripple was launched in 2012. The project’s aim was to provide a more efficient, cheaper, and safer solution for banks and other financial institutions to transfer funds.
Ripple is ranked among the coins with the fastest cryptocurrency transaction speed. The Ripple blockchain processes around 1,500 transactions per second, and the average time needed for a transaction approval is 3 - 5 seconds.
EOS is a blockchain-based decentralized platform. It is used for the execution of DeFi (decentralized applications). Its blockchain is designed to support large-scale apps. It is able to handle 2,800 transactions per second.
Some developers believe that the EOS project is a rival to Ethereum considering its benefits such as faster transactions, a higher scalability level, and more advanced services.
Ethereum is a blockchain-based distributed computing platform. It supports smart contracts and DeFi. The Ethereum project was launched in 2013, and only in 2015, Ether came into existence. Ether is a token that powers the Ethereum ecosystem. For now, Ether is the second-largest cryptocurrency in the world after Bitcoin.
The Ethereum blockchain normally handles around 90,000 transactions per week (nearly 10 transactions per second on average). But it is said that Ethereum 2.0 is going to handle up to 10,000 transactions per second.
NEO is an open-source blockchain-based platform. This platform is powered by its own cryptocurrency. The NEO blockchain supports smart contracts and digital assets of different types. In the future, it is aimed at creating a distributed smart economy system.
The NEO blockchain is able to handle around 1,000 transactions per second with an average transaction settlement time of 15 seconds.
Dash is one of the first cryptocurrencies that popularized the concept of masternodes. Dash can process 56 transactions per second, and its average transaction settlement time is a little bit more than 2 minutes.
Bitcoin (Just to Compare)
Well, if you think that Bitcoin does not have the fastest transaction speed, you are right. But, as the first and largest cryptocurrency, it’s perfect for us to compare other coins with it.
The approximate transaction speed of Bitcoin is 7 transactions per second, and the settlement of one transaction takes around 10 minutes.
EOS – 2,800 tx/second
Ripple – 1,500 tx/second
NEO – 1,000 tx/second
DASH – 56 tx/second
Ethereum – 10 tx/second now; 10,000 tx/second potentially for Ethereum 2.0
Bitcoin – 7 tx/second
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