Transactions per second: the fastest crypto-currencies
Home Bitcoin transactions per second: the fastest crypto-currencies
With the increasing number of users, the question of scalability is not far. How many users can a network tolerate up to it slowly? The speed of the transaction is especially in the case of crypto-currencies, which can be used as a digital means of payment is an important criterion. We throw currencies, therefore, a look at the most important Crypto and transaction speed.
A large part of the crypto-currencies is used as a digital means of payment. In order to survive in fight against other payment methods such as PayPal or credit cards, must be the network a very powerful. The relevance of the speed has to buy the editorial Board of the financial portal kreditkarte.net in her guide “crypto-currencies” as follows: “when it comes to the use of cryptocoins as digital payment systems in real life, or even between machines in the “Internet of Things” (IOT), is a high transaction speed is important.” The transaction speed is influenced by the actual time of the confirmation and of the network capacity.
Scalability and speed
Already at the beginning of the development of the Bitcoin this Problem can be seen. Since the Blockchain is immutable, a straightforward solution is not possible. Therefore, Bitcoin is also still only able to do seven transactions per second.
The ugly Face of the poor scalability has been shown to no later than the end of 2018. As the courses and the number of participants, the maximum levels reached, after did the wait times and transaction fees to you.
The Transaction Rate of Bitcoin, which is published, for example, in the case of blockchain.com shows that, in General, between two and six transactions per second are carried out. Remedy the Lightning Network, which continues to grow rapidly should also help. For comparison: VISA leads to a capacity of 56,000 transactions per second, but only about 2,000 by; at peak times, there are 4,000.
Theoretical values are only possible under ideal conditions
You have to note that TPS, confirmation of time and scalability, in General, could be for the long-awaited Mass adoption is important, but not the only criteria. In the case of the newer crypto-currencies, the majority claimed to 50,000 transactions per second and more. This is, however, as in the case of VISA also only a theoretical value. The actual performance is to be measured in the – especially since the new crypto-currencies are in a very early stage of development.
For analytical purposes the test networks used, the ideal conditions in terms of the latency of time to create. In the real operation in the real-time traffic, it is different. It is more sensible therefore, to analyze the actual, average transaction speeds. The following Overview shows the most popular cryptocurrencies and their transactions per second.
|Crypto-currency||Theoretical TPS||Estimated TPS|
Table: transaction speeds in the case of crypto-currencies
Ethereum scales, despite the large number of miners is not particularly good. A Change is a Proof with the transition from Proof-of-Work (PoW) to-expect-of-Stake (PoS). XRP the crypto-currency, with most transactions can be carried out in a second, however, is. In the case of Ripple, it is not a Blockchain, and especially not a decentralized technology. Stellar is built on the Ripple Protocol and can keep up in terms of TPS.
IOTA is also no Blockchain, is because of its Tangle-technology is still very interesting. The theoretical TPS 800, but not the end. IOTA is supposed to be even more scalable – even allegedly “infinite”. The current transactions, however, are still not ready. The confirmation of payment usually takes two to three minutes, and the average of 45 transactions per second do not meet the requirements of a wide-networked Internet of Things.
Litecoin creates more TPS than Bitcoin, but is limited to 56 TPS also significantly. Integration into the Lightning Network, but can enable like the big brother here, too, much higher Numbers. DASH currently can only process around 28 transactions per second and needed for the confirmation about 15 minutes.
Until crypto-currencies as a digital means of payment that can replace established solutions, it will take some time. The transactions per second, PayPal can already be surpassed by many Coins. Until the VISA is obsolete, but need to be created for further technological requirements. This will affect the mass adaption, and application areas (key word: Internet of Things) is relevant.
Post image: Up Bitcoins changed owners, it may take depending on the current number of users a little longer. Image source: geralt / Pixabay