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How Transaction Speed Affects the Crypto World

GDP, Forex, and Commodities Relationships - Vintage Value InvestingInvesting in value stocks has always been one of the favorite ways to build extra wealth for many people. In recent times, however, crypto currencies have taken over. Since 2017, the value of all crypto currencies rose from less than 18 billion dollars to a high 836 billion dollars. This huge growth rate is estimated to be about 5,000% in just a span of 14 months.

One of the factors considered by customers when carrying out transaction is speed. Cryptocurrencies have proved to be fast means of completing transactions, and so, many shortcomings experienced in our recent financial system have made people to consider crypto currencies as the best and surest means of transaction.

The existence of cryptocurrencies was as a result of the blockchain technology. Blockchain technology addresses the issue of inadequacies present in the current financial system. It also deals with the issue of the time taken to complete transactions. In today’s financial system, it takes longer time to complete transaction. Cryptocurrencies make transactions fast. There are variations in cryptocurrency transaction speed all the time often due to network conditions. Below is an overview of time taken to complete a transaction by different cryptocurrency networks.

Visa

Visa can adapt and upgrade its payment processing mechanism which has led to its transaction rate of 24,000 per second.

Litecoin

Litecoin has an average speed of 30 minutes and maximum capacity as 56 transactions per second. The cost of transaction is very low, much lower than Bitcoin and Ethereum. When transactions are made, they are verified instantly.

Bitcoin

Bitcoin’s transaction speed on average is 78 minutes; it’s limited to 7 transactions per second through an artificial block size. Its popularity is one of the major reasons why it takes a longer time to process transactions. Bitcoin’s transaction fees keeps on rising as it gains wider adoption.

Augur

It is one of the fastest processing transactions. The use of Augur makes payment faster and automated, its transaction speed on average is 6 minutes. Payments are reliable, safe and secure.

Iota

This is also a very fast processing transaction, much faster than Augur. The average speed of transaction is 3 minutes. It has no limitations regarding transaction fees and scaling. Two previous transactions have to be confirmed to transmit the current transaction.

Dash

Dash completes 48 transactions per second. It processes transactions quicker and at a lower cost. It is part of the burgeoning privacy-coin movement. Privacy of coin ensures the privacy and anonymity of both the sender and receiver of the funds. This is done in order to conceal the identity of the people involved in the transaction.  The transaction speed on average is 15 minutes, and has a 28 per second limitation, and it was built to enable faster transfers.

Ripple

Ripple is more than six times faster than PayPal at 1,500 transactions per second. Its transaction speed on average is 4 seconds. For the past few weeks, its daily transactions on its networks have increased from 160,000 to over 1,000,000. It has the same XRP channel payment’s scalability level with VISA.

Ethereum

Ethereum processes a mere 20 transactions per second and its transaction speed on average is 6 minutes. It is said to be the fastest cryptocurrency in the world as regarding block generation time.  According to Some earlier tests, the maximum capacity was shown to have reached 25 transactions per second; there is also an improvement in scalability.

Bitcoin cash

Transaction speed on average is 60 minutes. The total transaction per second is 60 seconds. Its vulnerability to a double spend attack has led to high numbers on deposits. It has got issues in aspects of security and consistency, which has led to long delays in transactions. Its block size limit is 8MB.

Bitshares

Transaction speed on average is 2 seconds. It utilizes the graphene technology. You could earn by referral and get part of the transactions costs. To match and process transactions, it utilizes Business Logic Processor.

POSSIBLE WAYS IN SPEEDING UP YOUR TRANSACTIONS IN THE CRYPTOWORLD

1. Create new transactions

This is an effective way to speed up your transactions in the crypto world, though this could be costly. When there is an overload on the blockchain, your funds can be sent out the second time with a better miner’s fee, and then sending it to the preceding block will be possible. When successive transactions are sent, it reflects in the subsequent block, because the fee is for both transactions. When this method is used, a technical error might surface.

2. Utilize a faster cryptocurrency

It is necessary to always go for a smarter and faster cryptocurrency. The type of cryptocurrency you opt for depends on the kind of transaction you do. If you are always receiving and transferring coins, it is advisable to go for one that has a much faster network. For instance Augur is one of the fastest crypto that can be opted for.

3. Increase the fee through your wallet

A coin wallet helps to recommend an ideal fee; you also have the option of choosing a higher level fee which can help to speed up transaction.

4. Set up your gas

The gas limit and gas price can be increased. This can help speed up transactions especially if you are mining Ethereum. It is necessary to ensure that the gas limit set is not too high as your transaction could be disqualified.

5. Use a transaction booster

Mining pools bring together miners so that they can complete blockchains faster. They also invited bitcoin traders to pay higher fees and have their transactions verified faster. They place orders booked immediately while delaying transactions for regular traders.