In this age of one-click shopping, we want everything now. We’ve become used to virtually instant fulfilment for everything, ranging from digital goods to ordering physical items online. The crypto space is no exception. Investors, developers and ordinary users find faster transaction times more desirable because they create a more satisfying user experience. As a result, speed is an essential benchmark for determining the potential of a crypto project.
This article will look at the transaction per second metric, how it affects the speed of a blockchain network.
What Is TPS and How Is It Related to Blockchain Speed?
TPS (or transactions per second) refers to the number of transactions a blockchain network can carry out in one second. It represents a blockchain’s speed, because it shows how scalable and fast the network is. TPS is also referred to as throughput rate.
However, TPS isn’t the only parameter that determines a blockchain’s speed. Transaction finality time (the time it takes to confirm a transaction as immutable) is just as important. Together, these parameters describe a blockchain network’s scalability, which is the network’s ability to handle an increasing number of transactions.
Scalability is a hot topic in blockchain because insufficient scalability is a significant stumbling block on the way to broader adoption of blockchain technology.
The Pursuit of High Crypto Transaction Speed
A primary challenge for blockchain innovators has been maintaining high transaction speed, decentralization and security simultaneously, a problem termed the “blockchain trilemma” by Ethereum co-founder Vitalik Buterin.
Both the efficiency of a blockchain network and its overall optimal user experience rely on scalability. Hence, most recent projects tend to innovate various systems to increase their network’s throughput and, therefore, put scalability ahead of decentralization and security. Still, several blockchain projects have made commendable attempts to solve the blockchain trilemma.
What Are the Fastest Cryptocurrencies?
Blockchain developers have always struggled with consistently achieving the trio of decentralization, security and scalability. However, scalability is the most coveted because it holds the key to mass adoption of the technology. That said, here are eleven blockchains with some of the highest TPS.
◾ Bitcoin (BTC)
Bitcoin. Bitcoin is the leading cryptocurrency at the top of thousands of cryptocurrencies. But, the transaction per second is 3-7 within 10 minutes of the average crypto transaction’s confirmation time.
In most cases, a Bitcoin transaction is confirmed within one hour. Most people call a transaction successful with a minimum of six confirmations. Another five blocks must be mined on top of the block that contains the transaction. On average, a new block is mined every ten minutes.
The transaction processing capacity maximum estimated using an average or median transaction size is between 3.3 and 7 transactions per second.
Why can Bitcoin only do 7 transactions per second?
The reason Bitcoin’s blockchain can only process 7-10 transactions per second is that Bitcoin blocks are only produced every 10 minutes on average, and each block can contain a limited number of transactions.
◾ Solana (SOL)
The Solana (SOL) blockchain has been around since 2017, and is one of the fastest chains, with a transaction speed of 3,000 TPS (theoretically, up to 710,000). The highly scalable Solana blockchain achieves this impressive speed using a hybrid proof-of-history (PoH)/proof-of-stake (PoS) consensus mechanism.
Even more impressive, Solana’s block finality time clocks in at 21 to 46 seconds. The finality time describes the time it takes a blockchain transaction to be confirmed as immutable (that is, it cannot be altered). Finality time is as vital as transaction throughput in determining the transaction speed and, therefore, the scalability of a network. As a result of its high throughput, Solana has low fees and even lower network congestion, making it an attractive protocol for launching DApps, games and, more recently, NFTs (non-fungible tokens).
◾ Ripple (XRP)
Ripple (XRP), a blockchain-based alternative to cross-border payment systems like SWIFT (Society for Worldwide Interbank Financial Telecommunication), boasts a transaction speed of 1,500 TPS, which can supposedly be scaled up to 50,000 TPS.
Designed to rival the transaction speed of traditional cross-border payment systems, Ripple charges $0.0003 per transaction (as opposed to $15–$20 for a SWIFT transaction), and takes 3 to 5 seconds to finalize, adding to the network’s overall efficiency. XRP relies on a network of trusted nodes that requires 80% consensus before a transaction can be processed and validated. This unique method has called into question its decentralization.
However, because of its high speed and low fees, Ripple has already been accepted globally by many banks to facilitate international money transfers and remittances.
◾ Ethereum 2.0
Ethereum 2.0 (also known as Serenity), when it finally launches, aims to be one of the fastest cryptocurrencies around with a TPS of 100,000, a far cry from its current 12–15 TPS. Currently in development, Ethereum 2.0 is touted to finally launch in early 2023.
The ongoing objective is to make Ethereum faster, cheaper and cleaner. Ethereum will transition from the proof-of-work (PoW) consensus on which it’s currently built to the highly scalable proof-of-stake (PoS). Ethereum 2.0 is also designed to circumvent scalability, decentralization and security issues through the use of sharding. In short, Eth2 is projected to bring important changes to the present Ethereum ecosystem, making it more scalable, secure and sustainable.
◾ Algorand (ALGO)
The Algorand blockchain is a secure and scalable network built to support various applications. Launched in 2019, Algorand is known for its high throughput, clocking in at an average of 1,300 TPS, with a reported potential capacity of 3,000 TPS. The block finality time is equally impressive, with transaction validations completed in roughly 5 seconds.
Algorand adopts the pure proof-of-stake (PPoS) consensus mechanism, randomly selecting and rewarding validating miners to ensure a bias-free environment. This tweaked mechanism allows Algorand to achieve decentralization while still maintaining a fast TPS.
Algorand has the throughput capacity and scalability required to support a comprehensive range of use cases on a global scale. Many DApp and DeFi developers are turning to the network to escape the high fees and congestion of Ethereum.
◾ Fantom (FTM)
Fantom is one of the fastest networks on this list. In addition to a speedy TPS of 25,000, the protocol has a block finality time of about 1 second. For perspective, compare this time to Solana’s 21–46 seconds and Ethereum’s 60 seconds.
A smart-chain-capable network, Fantom uses the directed acyclic graph (DAG), a distributed ledger technology made up of a computer network that executes transactions in parallel. To validate transactions, each computer in a DAG ”gossips” about its transactions to random neighboring computers, who repeat a similar action, spreading the transaction instantly across the entire network. This system is responsible for the Fantom network’s high throughput and nearly indefinite scalability.
Fantom also uses the Ethereum virtual machine (EVM), which makes it compatible with Ethereum. As a result, Ethereum developers will find it easy to deploy DApps to the Fantom network. Due to its blazing-fast speed and several incentive programs targeted at developers, Fantom certainly has brilliant prospects as a go-to platform for DApps.
◾ Cosmos (ATOM)
Designed with a focus on customization and interoperability, Cosmos Network (ATOM) has the enviable reputation of being the Internet of Blockchains. It can handle over 10,000 transactions per second and has an average finality time of 2–3 seconds.
Cosmos implements a (PoS) consensus and relies on a robust technology stack, consisting of:
Tendermint: A consensus engine that enables developers to build a scalable, fast and secure blockchain network
Inter-Blockchain Communication Protocol (IBC): A system that connects disparate blockchains
Cosmos SDK: A popular framework for building DApps on top of Tendermint-based blockchain
Highly scalable, interoperable and smart contract capable, Cosmos has become popularwith developers who build powerful cross-chain DApps. Some of the more popular ones include Anchor, Chainweaver, Klever and Flare.
◾ Avalanche (AVAX)
Avalanche Network, one of the fastest blockchains, is smart contract capable and weighs in at an impressive
4,500 TPS, with a block finality time of 1–2 seconds.
Avalanche’s unique approach to solving the blockchain trilemma involves using a PoS mechanism and a unique three-blockchain system within its ecosystem. Each blockchain focuses on a particular purpose. The Exchange Chain is the exchange blockchain that allows assets to be traded; the Contacts Chain enables developers to build decentralized apps; and the Platform Chain tracks validators, who manage Avalanche subnets.
Leveraging its high throughput and low fees, Avalanche’s aim of creating a straightforward and unified global market to trade assets frictionlessly has been largely successful. Therefore, it’s projected the multi-chain project will be the leading blockchain for financial services in the web 3.0 economy.
◾ Cardano (ADA)
With a transaction speed of 250 TPS that’s matched by a finality time of 5–10 minutes, Cardano’s transaction speed may not be on par with some others on this list, but it holds its own in terms of security and community involvement. Cardano (ADA) is an open-source, decentralized blockchain created for smart contract applications, such as DeFi apps, games, crypto tokens, and more.
Cardano uses Ouroboros, its unique, energy-efficient PoS consensus. The network randomly selects validators in proportion to their stakes for the chance to produce new blocks. The Cardano chain consists of two layers, Cardano Settlement Layer (CSL) and Cardano Computing Layer (CCL), to facilitate scalability.
The Cardano ecosystem hosts a wide range of DeFi and NFT applications, including SundaeSwap, a decentralized exchange, and MELD, a trustless lending protocol.
Currently, Cardano is developing a Layer 2 solution that will increase its throughput to about
1,000 TPS and reduce finality time to less than one second. This upgrade, when implemented, will place Cardano on a par with the most scalable blockchains.
◾ EOS.IO (EOS)
EOS is a blockchain-based network optimized as a platform for DApps. Consequently, it offers a high throughput of 4,000 TPS to accommodate a tremendous volume of transactions. It gets better, though: EOS transactions take 2–3 seconds to reach finality, making EOS.IO one of the fastest blockchains.
To achieve this Formula 1-like speed, EOS uses a delegated proof-of-stake (DPoS) consensus, which entails validators (called witnesses) reaching a consensus on the next validator to verify a transaction. Each witness’s vote’s strength is proportional to their stake. However, this unique voting system has led to allegations of centralization, since a few block producers hold most of the voting power.
With high scalability, low latency and feeless transactions, the EOS chain is set to become the future platform for enabling web 3.0 initiatives. It offers a fertile space for a growing network of DApps and services such as pEOS, Upland, EOS Dynasty, Scatter and Newdex.
◾ Polygon (MATIC)
Polygon (MATIC) is a blockchain that seeks to scale the Ethereum network by supporting multiple scaling solutions, including Layer 2 and sidechain solutions. It boasts a high throughput of 7,000 TPS (theoretically, up to 65,000) and a finality time of 2–3 seconds, Polygon provides security support for other blockchains and links various chains to its ecosystem, while handling the communication between participating Polygon chains and Ethereum chains. Polygon offers a platform for Ethereum DApps to run on a system of connected blockchains, while maintaining Ethereum’s network security and other benefits of a Layer 1 chain.
With its super-fast speed and low fees, Polygon has attracted developers stung by Ethereum’s high gas fees and low throughput. A growing number of high-profile gaming platforms, decentralized exchanges and DeFi applications have adopted the Polygon Network.
◾ Bitgert (BRISE)
Bitgert launched on February 14, 2022, making it the newest project on this list andpossibly the fastest. Bitgert handles a whopping 100,000 transactions per second, with a block finality time of 2 seconds. Coupled with this incredible speed, transaction fees on Bitgert are negligible, averaging $0.00000001.
Bitgert is built on the Binance Smart Chain (BSC) protocol and adopts a proof-of-authority (PoA) consensus used by BSC. The high throughput achieved by Bitgert is due to this consensus mechanism, which allows validators to stake their reputation instead of coins.
Without a doubt, Bitgert is the next big thing in the crypto industry. The project is on track for
exponential growth, due to its near-zero gas fees and lightning-fast transactions. Since its recent launch, it’s already been hosting many projects in the NFT, DeFi, metaverse and DApp spaces.
Does Blockchain Speed Actually Matter?
Speed is paramount in an age of instant gratification and short attention span, especially in financial transactions. However, recent events in the crypto space have shown that decentralization and security are equally vital.
One case in point is the series of outages encountered by the Solana network, with the most
Recent one occurring on May 1, 2022. Solana’s network validators couldn’t create new blocks for over four hours, and applications on the Solana blockchain went offline. How did this happen?
With a throughput of 50,000 TPS and an average cost of $0.00025 per transaction, NFT and DeFi developers have been rushing to the Solana blockchain. The network experienced voluminous traffic, due to bots attempting to trade NFTs, which in turn overwhelmed the network’s nodes. And a “bug” was also cited as the cause of one of the earlier outages. These incidents specifically exposed the adverse impact of the network’s trade-off, sacrificing security and stability in exchange for speed.
Another incident, this one with the EOSIO network, also highlights the predicaments of the blockchain trilemma. EOS froze seven accounts on suspicion of possible theft. However, this action was met with stout criticism, since the decision was made by only 21 elected block producers, calling into question the network’s decentralization.
While transaction speed is important, security and decentralization are just as crucial. After all, they are the basis for the development of blockchain technology in the first place.
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