The security and transparency of blockchain technology make it an attractive way to power transactions across a wide range of industries. But while blockchain shines in terms of security, speed has always been one of the long-standing challenges of crypto transactions. In recent years, numerous blockchain projects have been developed specifically to fill this gap and improve blockchain transaction speed and scalability. In this post, we’ll explore the top 7 cryptocurrencies known for their high transaction speeds.
What is Crypto Transaction Speed?
The transaction speed and throughput (measured in TPS or transactions per second) are important metrics used to measure the speed and overall efficiency of a blockchain system. While everyone likes the idea of playing on a Bitcoin casino instant withdrawal, this is very difficult to achieve due to the slow transaction speed of traditional blockchain systems.
Bitcoin has a transaction speed of just 7 transactions per second, with an average transaction speed of about 10 minutes. That’s extremely slow, even compared to traditional fiat transaction methods like Visa, which can process approximately 24,000 TPS.
Transaction speed refers to the amount of time needed to process and record transactions on a blockchain network. This time is measured from the moment a transaction is initiated till it is confirmed by the crypto network.
Transaction speed depends on various factors, including the underlying architecture of the blockchain, the size of the transaction, fees associated with each transaction, and how busy the network is.
Top 7 Cryptocurrencies With High Transaction Speed
Older blockchain networks such as Bitcoin are plagued with slow transaction speeds due to the architecture of their decentralized network. However, newer blockchain networks have improved on this significantly, with many of them introduced specifically to deliver faster transaction speeds. Some of these efficient crypto networks include:
Solana (SOL)
Solana is a blockchain platform designed specifically for hosting decentralized applications (dApps) and other digital assets. The platform was launched in 2017 as an open-source project and uses SOL as its native token.
Solana is often regarded as the fastest blockchain network in the world. The platform has achieved records of up to 24 million transactions across its network in a single day, which is higher than ever recorded on any other network.
Solana uses a mix of Proof of History and Proof of Stake consensus to manage transactions. These incredibly lightweight consensus mechanisms allow the network to achieve speeds of up to 50,000 transactions per second, with an average transaction time of 2.5 seconds. Solana also offers significantly lower transaction speeds compared to other blockchain networks.
Hedera (HBAR)
Hedera is a smart contract platform that features a unique data structure known as the Hashgraph distributed consensus algorithm. This crypto network’s system of confirming transactions is often hailed for its near-perfect efficiency. Hadera reaches consensus in a much different way than blockchain does.
Instead of the consensus-building algorithms used by traditional blockchain networks, the hashgraph network uses a concept known as “gossip about gossip” and virtual voting to confirm transactions, which is inherently faster and more efficient.
This next-generation distributed ledger technology promises transaction speeds of up to 10,000 TPS, with each transaction taking an average of 3 to 5 seconds. In addition to its high transaction speed, Hedera also offers other benefits like low latency and increased stability.
Cosmos (ATOM)
Cosmos is a blockchain network launched in 2016 to solve the interoperability challenge associated with traditional blockchain networks. The goal of this project was to create a network or internet of blockchains, which would allow multiple blockchains to communicate with one another in a decentralized way while also providing a network for building high-performance, production-grade blockchain applications.
Cosmos boasts of its ability to handle up to 10,000 transactions per second, with an average speed of 45 seconds for each transaction. Cosmos verifies transactions through its Tendermint algorithm, which is a Proof-of-Stake (PoS) consensus algorithm at its core.
Neo (NEO)
Neo is a smart contract platform originally launched in 2014 but rebranded as Neo in 2017. It was created as a blockchain network for developing decentralized products and services. Neo uses a unique consensus algorithm known as the delegated Byzantine Fault Tolerance (dBFT) algorithm. This consensus system has been hailed for its efficiency and high transaction speed.
NEO also uses digital identities to enable quick and efficient verification of transactions. Using these systems, the smart contract network is able to achieve a transaction speed of 10,000 TPS with an average transaction time of 15 seconds for each transaction.
Avalanche (AVAX)
Avalanche is part of a new generation of blockchain systems that emphasize speed, efficiency, and eco-friendliness. The platform was launched in 2020 and operates on a unique consensus mechanism known as the Avalanche Consensus Protocol (ACP). This protocol operates by creating subnetworks that allow parallel processing of transactions.
To boost transaction speed, Avalanche uses a layered blockchain architecture. The consensus layer, which handles the validation of transactions, is completely separated from the execution layer, which processes the transactions. Consequently, Avalanche can handle up to 5,000 transactions per second with an average transaction time of 1 to 2 seconds.
EOS (EOS)
Entrepreneurial Operating System (EOS) is a decentralized blockchain platform that runs on a delegated proof of stake (DPoS) consensus mechanism, designed to deliver fast transaction speed and high throughput.
With the DPoS system, only a few elected nodes act as transaction validators or block producers instead of the entire community, which makes transactions faster and more efficient. The EOS is designed to handle up to 4,000 transactions in one second, with an average transaction speed of 1.5 seconds.
Algorand (ALGO)
Algorand is a decentralized platform that uses a pure proof-of-stake consensus mechanism to validate transactions. When the platform launched in 2017, it could process up to 1,000 transactions per second, with an average speed of 45 seconds per transaction.
While this was already higher than traditional blockchain platforms like Bitcoin and Ethereum, Algorand released an update in 2021 that made it even faster. The blockchain is now capable of executing up to 6000 TPS, with less than a 3-second confirmation time for each transaction.
Due to its speed, security, and scalability, Algorand is the preferred blockchain for many businesses, organizations, and even government bodies looking to adopt blockchain technology for their operations.