Bringing Some Zoom to Blockchains Transactions

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If decentralized finance is to ever gain mass adoption and pick up where credit cards leave off, the blockchains that process financial transactions will have to be at least as fast as the credit card companies. In 2018, Nelson reported that there were 1.01 billion credit card transactions every day. That’s roughly 11,690 transactions per second. Are there any blockchains processing transactions that quickly?

Forex Suggest conducted a study to compare various blockchains with each other and with the leading credit card companies. Visa is estimated to handle about 1,700 transactions per second while Mastercard claims to handle 5,000 per second. What about cryptocurrencies?

The Leading Blockchains Per Transaction Speed

According to Forex Suggest, Stellar, with its cryptocurrency called Lumens (XLM) is the fastest blockchain with 83.26 transactions per second. That’s a far cry from Visa’s 1,700 transactions per second.

Ripple can process 25.71 XRP transactions per second.

Ethereum, the largest smart contract platform by volume, can process 14.78 transactions per second while Bitcoin can process a mere 2.58 transactions per second. Litecoin falls into fifth with a 1.55 transactions-per-second blockchain speed.

The fastest stablecoin is USDC with a transaction speed of .58 transactions per second. Tether can process up to 201 transactions per day, far behind USDCs 50,336.

Rounding out the top 10 blockchains by transaction speed are Cardano, Dogecoin, Monero, and Dash. 

The study was conducted in 2021.

The Leading Blockchains Per Transaction Time

Forex Suggest went one step further and categorized each blockchain studied by transaction time. Categories included Near Instant, 1 Minute and Under, 5 Minutes and Under, and Over 5 Minutes.

The blockchains that fall into the Near Instant category include Cosmos, EOS, ICON, Kava, Nano, Oxygen, Raydium, Ripple, Serum, Solana, Stellar, and Terra.

Terra’s stablecoin UST recently pushed past Binance USD to become the third largest stablecoin by market cap. As of April 19, 2022, Terra Luna is the eighth-ranked cryptocurrency by market cap and UST is 13th. Solana is seventh. Ripple’s XRP is sixth. The highest from the above list not in the top 10 is Cosmos, ranked 22nd by market cap.

Included in the 1 Minute and Under category are Algorand, Avalanche, Flow, Tron, and Energy Web Token.

Algorand’s transaction time is 27 seconds per transaction while Avalanche’s, Flow’s, and Tron’s each are registered at 60 seconds per transaction. Energy Web Token registered at 69 seconds per transaction.

Of that list, Avalanche has the highest market cap, falling in at No. 10 in the listings at slightly more than $21 billion. By contrast, Ripple’s market cap is $37 billion and some change. 

Sixty-seven coins landed in the 5 Minutes and Under category. The top three include Kusama, Polkadot, and Tether’s TRC-20 token (TRON blockchain) at 120 seconds per transaction each. Of the three, Tether has the highest market cap at $82.8 billion and sits at third in the rankings. Polkadot, ranked 12th, has a market cap of $18.3 billion. Kusama is way down the list with a market cap of $1.4 billion.

The next five blockchains each can process transactions in 240 seconds. These are Bifrost, Karura, Moonbeam, Moonriver, and Shiden.

The rest of the blockchains in that category process transactions at 300 seconds each. These include 0x, Aave, Basic Attention Token, Chainlink, Dash, Decentraland, Ethereum, Polygon, Rarible, Tether’s ERC-20 protocol (Ethereum blockchain), The Sandbox, USDC, and Yearn Finance.

Sixteen cryptocurrencies fall into the Over 5 Minutes category including Cardano, Waves, Tezos, Litecoin, Monero, Bitcoin, Dogecoin, Tether’s OMNI protocol, Lisk, Bitcoin Cash, and Ethereum Classic. 

Cardano and Waves lead the group with a transaction speed of 600 seconds each. Cardano is ninth in the listings with a $32 billion market cap. Tezos’ transaction speed falls in at 900 seconds.

Litecoin, with a market cap of $7.9 billion, and Monero, with a market cap of $4.6 billion, each can process transactions at 1,800 seconds. Bitcoin, Dogecoin, and Tether’s OMNI protocol token can process transactions at 2,400 seconds each. Bitcoin Cash’s transaction speed is 9,000 seconds while Ethereum Classic is 561,600 seconds.

Judging by this data, we’re a long way from overtaking credit card transaction speeds, but early adopters tend to look at benefits other than speed. With continued development, some of the fastest blockchains may someday overtake credit card transaction speeds. Even if they don’t, blockchain transactions tend to be more secure.

NOTE: Forex Suggest gathered its data from Statista.

 

 

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