There are more than 1500 different digital currencies, and to understand the differences of their approaches to blockchain technology is becoming increasingly difficult. The blockchain is a digital, distributed and decentralized database, that is the base of cryptocurrencies. It records all transactions without the involvement of any financial institutions.
Which cryptocurrencies have the fastest transactions?
Different factors should be taken into account when evaluating each project. And one of the most important is the number of transactions per second. The applicability of this indicator is rather arbitrary since there is not yet a single study comparing the blocking capacity of various crypto-currencies under the same load. In addition, the number of operations per second does not take into account the time of block generation (it also has value). Nevertheless, the speed of work is an important indicator – it is considered by investors and potential commercial partners.
Surprisingly, the two most popular cryptocurrencies work extremely slow. According to HowMuch.net, the Bitcoin network is capable of processing only seven payments per second. Ethereum is not better: in a second the network handles only 20 transactions. For comparison, Visa payment system is capable to process 24 thousand operations for the same time. Can cryptocurrencies compete? Yes, and here are three of them. Each is capable of processing more than 1.5 thousand transactions per second under conditions of high load of the network.
Ripple: 1500 operations per second
Ripple – the leader in performance among the top 10 largest cryptocurrencies. He is still far from Visa, but as a beginning, it looks promising, doing the close cooperation on the project with financial institutions.
Since November, Ripple has signed two partnership agreements with large companies. In November, together with American Express and Banco Santander, the first cross-border payments were made. Now American Express customers can make instant transfers to accounts in the British branch of Banco Santander with the help of the Ripple blockchain.
Last month there was an announcement about the partnership with the payment system MoneyGram International. MoneyGram intends to integrate Ripple tokens (XRP) into its platform. Imagine a US customer sending dollars to a recipient from Mexico. First they are converted to XRP, and then to pesos. The payment takes place almost instantly and costs much less than the usual transfer.
NEM: 4000 operations per second
Another promising in terms of the speed cryptocurrency is NEM, the so-called “smart blockchain”. According to the developers, its technology is able to handle 4 thousand transactions per second.
The uniqueness of NEM is that it is trying to solve one of the biggest modern problems: how to integrate the blockchain into existing corporate networks? For some industries, this process can be extremely expensive and time-consuming. Fortunately, the NEM unit can be customized for specific needs. This is the secret of high efficiency and speed of its network.
Unlike Ripple, focused on banks and payment systems, NEM’s target audience is companies outside the financial and monetary sectors. It offers services for authorization and notarization with the help of cryptographic signatures, allows you to use the blockchain to convert bonus points of retail buyers into the real currency, and much more. While NEM has concluded only one major partnership agreement – with the Malaysian state-owned company Digital Economy Corporation. The Cryptocurrency has to prove its worth, but the existing technical developments give some optimism.
RaiBlocks: 7,000 operations per second
Although the world of cryptocurrency is constantly changing, RaiBlocks with a high degree of confidence can be called the leader in the speed of transactions. In addition, the development of hardware solutions will increase the bandwidth.
RaiBlocks uses a blockchain architecture when each account has its own block. The advantage of this approach is that changes in the chain of accounts can be made instantly, without confirmation of the entire network, significantly increasing its throughput. But since RaiBlocks uses the model proof-of-stake, sending money is associated with two separate transactions. In the first funds are withdrawn from the account of the sender, in the second – are credited to the beneficiary’s account. This is somewhat burdensome, but the operations are quick and with minimal costs. In addition, this technology is very scalable.
The goal of RaiBlocks developers is to allow financial institutions around the world to accept XRB coins as ordinary currencies. They also believe in the potential of their project in regions with undeveloped banking infrastructure.
These virtual currencies carry out transactions very quickly, but the blockchain technology itself is still new. Investors should remember this.
Almost a decade ago, bitcoin lifted the blockchain to a new level of development, but companies still use technology extremely poor, mainly testing in small projects. In the future, the blockchain may change our world beyond recognition, but the transition to it is likely to take longer than expected.
Watch out for Ripple, NEM and RaiBlocks. These cryptocurrencies offer a unique feature, which lacks Bitcoin and Ethereum, – the high speed of operations. However, keep your emotions under control and realistically evaluate their prospects.