In the past year, cryptocurrencies increased their capitalization from 17 to 830 billion dollars. Besides, their price continues to grow every day. To date, there are more than 1.5 thousand cryptocurrencies, and their approach to the blockchain technology is becoming more and more complex. Respectively, and it is becoming more and more difficult to understand this. Blockchain is a decentralized digital database, on which cryptocurrency is based. It is used to record all transactions performed in the system.
Among other things, the effectiveness of the project depends on the speed of transactions in the system (i.e. the number of operations per second). The study considering all the connecting factors has not yet been conducted. But the speed of operations is quite an important indicator for potential investors.
For many, it may be an opening that two market-leading cryptocurrencies have low transaction rates. Bitcoin network processes only about eight payments per second, while Ethereum – about twenty. In comparison with the leading payment systems that process more than twenty thousand operations per second, it’s very little.
But there are also such cryptocurrencies that may represent competition. Three cryptocurrencies, which will be discussed, are capable of processing over 1.5 thousand transactions per second under heavy load.
Ripple is a payment network and a cryptocurrency (XRP), which confidently wins the market. In fact, it is one of the leaders among the ten largest cryptocurrencies. Ripple cooperates with quite serious companies, such as American Express, Banco Santander, and MoneyGram International. The latter is even going to embed XRP tokens into its system. Thus, in contrast to the standard transfer, it will be possible to make payments instantly and with a smaller commission.
Cryptocurrency XEM from the platform ‘NEM’ is designed to solve the problem of blockchain integration for corporate networks. Indeed, for many serious industries, this process was unavailable due to the high cost and considerable work. Blockchain NEM easily adapts to various tasks.
This cryptocurrency has a partnership agreement with a company from Malaysia called ‘Digital Economy Corporation’. However, it seems that the list of its partners will grow over time. After all, the technical achievements of this company seem quite promising.
Perhaps very soon there will be cryptocurrencies with higher potential; however, so far, Nano is the deserved leader (it was previously called RaiBlocks). This cryptocurrency uses a rather unique structure. So-called ‘block lattice architecture’, which allows you having a personal blockchain for each account. The uniqueness is also in the fact that you can almost instantly make changes to the blockchain without confirming the entire network.
However, there are some disadvantages. Due to the use of consensus algorithm ‘Proof-of-Stake’, transfer of funds represents two different transactions. Money is withdrawn from one account and transferred to another. A little inconvenient, but it is worth considering that transactions are extremely fast and cost-effective.
The company Nano (RaiBlocks) ensures that the large financial companies around the world have worked with NANO coins (before changing the name, the coin was called XRB) as with a conventional currency. The potential of this cryptocurrency is also evident in countries where banking structures are poorly developed.
Three cryptocurrencies reviewed in this article offer quite a high speed. Famous cryptocurrencies like Bitcoin don’t have this. But is it worth investing in them? This question is serious enough and requires a rational approach.
Despite the fact that these cryptocurrencies could increase the speed of transactions in their system, blockchain is still developing. Bitcoin managed to significantly raise the level of this technology, but so far no one has managed to implement it in full force. Blockchain is certainly an innovative technology, which is already significantly affecting our world. And in the future, the use of blockchain will only expand, which will offer many new opportunities.