The transaction speed of cryptocurrency

The transaction speed of cryptocurrency

Posted on: 11 Nov, 2021

Whenever we talk about cryptocurrency, the first name that pops out into our mind is Bitcoin. With so many advantages like decentralized transactions, it is yet to be adopted by everyone. But why is that? It is due to Bitcoin's lack of scalability because of slower transaction speed.

After the lunch of bitcoin, the developer has realized the issue with the microtransaction speed. Many other cryptocurrencies also claim to solve this problem as well. But how do we measure the transactions speed of the crypto transaction and what is the fastest currency at this moment?

Let us dive right in and find right out.

 

How to calculate the crypto transaction speed?

 

The transaction speed of the cryptocurrency speed at which the technology can process and store the data. There are a few factors that determine the overall speed of transitions. To measure the speed, we need to know the size of each block, the size of average transactions and how often will a new block be added to the main blockchain.

When we look at Bitcoin, we can see that each block consists of 1 megabyte of data. On the other hand, the average transaction is around 400 bytes. From that, we can easily measure that each block of bitcoin has the capability to handle around 2600 transactions. So, on average bitcoin has a transaction speed of around 5 transactions per second.

Other popular transaction methods like Mastercard and Visa have a transaction speed of around 5000 transactions per second. Bitcoin being 1000 thousand slower than visa and master cards, the scalability of bitcoin is always in question.

 

The fastest cryptocurrency

 

After seeing the scalability issues of bitcoin, many other blockchain projects have started, yet many failed. But as of today, the title of the most successful cryptocurrency in terms of speed goes to Solana (SOL).

Solana is literally built for speed. It has an astounding speed of 50,000 transactions per second. But due to these speeds, it has to let go of many security steps.

It is only time before we figure out the perfect balance between speed and security and strengthen the future of digital payment cryptocurrencies.

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