When Bitcoin was introduced as the world’s first-ever cryptocurrency, it offered some benefits that no banking beneficiary could provide. These included full anonymity, fast processing times, and the ability to transfer large sums of money. New cryptocurrencies eventually came in and evolved the whole industry by providing efficiency, low processing fees, near-instantaneous transactions, and a beneficial ecosystem for users.
Even today, Bitcoin takes almost 40 minutes to process a single transaction which can also vary depending on the network traffic. That is why most users prefer cryptocurrencies with the fastest transfer speeds.
Factors that impact transfer speed
There are a couple of factors that impact the transfer speeds of cryptocurrencies.
Number of Transactions
The number of transactions a blockchain or a cryptocurrency can execute within a second. For instance, Bitcoin can only execute seven transactions per second whereas its revolutionary version, Bitcoin Cash, can execute 200 transactions per second.
Validity Time
Another important factor is the finality and validity time for a transaction. Whenever a transaction is executed on a crypto blockchain, it is verified by other users or miners on the network. If a blockchain requires more miners to validate the transaction, the overall transfer time increases.
For faster transfer speeds, a crypto should support a greater number of executed trades per second and have a lower validity time. So, which cryptocurrencies are the fastest? Take a look below:
Cosmos (ATOM)
Cosmos can execute 10,000 transactions every second, with a verification time of only a few seconds. When executing a transaction with Cosmos blockchain, the funds will be transferred almost instantly. The asset is built on a proof-of-stake consensus method which not only allows the transactions to be faster but also rewards participants.
Ripple (XRP)
Ripple was designed to make global payments easier, faster, and safer than ever. Its protocol runs on an open-source, peer-to-peer, and decentralized network, allowing users to make payments efficiently.
Ripple can process up to 1,500 transactions every second, with an approval time of only 3-5 seconds. With its almost-instant ledger settlement and excellent efficiency, Ripple allows users to instantly transfer funds to anyone in the world.
Algorand (ALGO)
Algorand is a relatively new cryptocurrency launched in 2019. The crypto asset was designed to solve three problems: transaction time, security/anonymity, and decentralization. At its launch, ALGO initially only supported 1,200 transactions per second. After the network upgrade, ALGO can now execute 6,000 transactions per second. Every transaction executed on the network is usually processed in approximately 0.75 minutes, including the verification time. With the proof-of-stake consensus, you can be a part of the ALGO ecosystem, earn, and enjoy quick transactions.
Tron (TRX)
Most cryptocurrencies are designed to make payments secure, anonymous and faster. Tron was designed with a unique concept. Launched in 2017 as a direct challenge to the media industry, the token aimed to eliminate the corporate middlemen between content creators and consumers.
Today, Tron is used to host media applications with the capability of processing 2,000 transactions per second. An average transaction executed on the Tron network is processed in a minute, providing an easy pathway for the users, and especially content creators, to transfer funds between them.
Avalanche (AVAX)
Avalanche is considered a tough competitor for Ethereum, which is only second to Bitcoin in terms of market cap and popularity. It is a blockchain platform that prioritizes faster transaction speeds, decentralized applications, and scalability. As Avalanche supports smart contracts, anyone can build dApps on its network and scale the projects with complete privacy and decentralization, and open-source code.
The Avalanche network supports 4,500 transactions per second. Avalanche developers claim that transactions on the AVAX network can be completed within a few seconds, but it can actually take up to a minute in most scenarios.
Flow (FLOW)
Flow is another direct Ethereum competitor. It enables fast and low-cost transactions. Very high transactions fees are one of the main concerns for Ethereum mainnet users. With Flow, you can process your transaction for as low as 0.000001 FLOW or approximately $0.000049.
Flow blockchain claims it can execute 100 transactions per second, with the possibility of increasing the magnitude in the near future. On average, a transaction executed on Flow blockchain can be processed in a minute, which may vary depending on factors like network congestion.
Tether USD (USDT) TRC-20
USDT is one of the most popular stablecoins in the crypto world backed by an actual asset. It is backed by US dollars, and every USDT coin is pegged by US dollars in physical reserves. As the value of USDT does not appreciate or depreciate, its role is to hedge against market volatility and provide liquidity.
USDT also supports bridging over other networks and can be used with the Ethereum network and several others. When used with the TRC-20 network, which is Tron’s blockchain, the transaction becomes cheaper and faster. A USDT transaction executed on the TRC-20 network usually only takes two minutes to be completed.
Polkadot (DOT)
The Polkadot blockchain was built not only to entertain value transfer, but data transfer too. Its developers wanted to create a system where information could be transferred between blockchains without a third party involved. The Polkadot network is also used to create decentralized applications, as the network allows cross-chain transfers.
The network supports 1,000 transactions per second, which is way more efficient than Bitcoin or Ethereum. A transaction initiated on the Polkadot network is usually finalized within two minutes, making it a fast and efficient payment solution.
Tezos (XTZ)
Tezos is a decentralized ledger or blockchain network mainly used for decentralized applications, decentralized finance, and NFT projects. Users holding the native token of Tezos, XTZ, can earn staking rewards and be part of the governing party of the ecosystem. Tezos is set to reach new milestones in transaction speed with upcoming updates to the network.
As per official reports, Tezos will be able to perform 1,000 transactions per second. You will be able to process your transaction in around three minutes if there are no affecting circumstances.
Cardano (ADA)
Cardano is one of the early crypto projects to be designed with a proof-of-stake consensus mechanism instead of the traditional proof-of-work consensus mechanism. The crypto asset was launched in 2017 with the aim of being an alternative to Ethereum. Aside from being efficient, Cardano is also faster and cheaper to use than Ethereum.
Cardano can handle around 250 transaction requests every second, but its developers aim to significantly boost transfer speeds and make the project more scalable and sustainable. A Cardano transaction is normally completed along with the block validity in about 10 minutes. The time may vary depending on what sort of platform is being used and the network traffic.
Conclusion
Cryptocurrencies like Bitcoin and Ethereum might be at the top of the charts, but they are not really reliable in terms of speed and efficiency. New cryptocurrencies are now relying on the proof-of-work consensus mechanism, which automatically reduces the validity time and makes the whole network faster. So, if you want to transfer funds to someone almost instantly, pick any of the assets mentioned above. But make sure to go with decentralized exchanges for transferring the funds. Centralized exchanges usually require an additional number of confirmations to process the transaction, thus slowing down the process.
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