It’s certain everyone at one point or the other has wondered how some cryptocurrencies can zip through transactions at lightning speed while others lag behind. It’s a high-octane race to see which digital contenders can process transactions faster than a cheetah on roller skates!
In this blog post, we will explore ten blockchains that can process transactions faster than you say ‘crypto’. However, before that, let’s talk briefly about the concepts of Blockchain Transactions and Transactions Per Second.
Blockchain Transactions
Transactions in the blockchain is the transfer of value, typically in the form of cryptocurrency, from one individual to another.
Different blockchains have varying capabilities in handling transactions. For instance, Ethereum and similar virtual machines can run programs, while Bitcoin is primarily designed for payments.
Every transaction must be verified for authenticity by the blockchain network before it is added to a block. Once validated, the transactions become part of a unique block on the blockchain, each block having its own hash and referencing the previous block’s hash. This ensures the security and integrity of the blockchain’s transactions history.
Now that we have a grasp of the concept of Blockchain Transaction, let’s delve into Transaction Per Second(TPS).
Transactions Per Second (TPS)
Transactions Per Second (TPS) refers to the measurement of the number of transactions a blockchain network can process within one second. It is a crucial metric that reflects the network’s scalability and efficiency.
Transactions speed play an important role in any blockchain platform. This is because it directly impacts the usability and accessibility of the network. With slow transactions speed, users may encounter delays and high fees, ultimately limiting the scalability and adoption of blockchain technology. Nobody wants that! Higher transactions speed allow for faster confirmation and settlement of transactions. This leads to improved user experience and enhanced trust in the technology.
Furthermore, one thing that’s essential for blockchain’s mass adoption is scalability.
A high TPS enables this i.e.
it allows the network to accommodate a larger number of users and handle a substantial transaction load, making it more appealing for various applications.
That being said, here are the 10 trailblazing blockchain networks that have mastered the art of lightning-fast transactions in no particular order.
1. Stellar Lumens
Stellar was established in 2014 by visionaries Jed McCaleb and Joyce Kim. Jed McCaleb was the former founder of Ripple. He brought Stellar into existence in 2014 as a platform centered around its native token, Lumen (XLM). Since then, this decentralized, open-source blockchain platform has set out on a mission to facilitate fast, secure, and cost-effective cross-border transactions.
At its core, Stellar aims to bridge the gap between people regardless of their location or financial standing. To achieve this, the platform has engineered a swift and efficient payment system that enables near-instantaneous cross-border transactions. Now, it boasts of an impressive processing speed of up to 1,000 transactions per second.
The result is a financial ecosystem that empowers individuals globally, providing opportunities for economic growth and prosperity.
Also, transactions verification within the Stellar network relies on Unique Node Lists.
Thanks to a transaction settlement time ranging from 3 to 5 seconds, the Stellar network demonstrates an impressive processing capability, handling anywhere between 1,000 to 5,000 transactions per second.
During a meetup in Singapore in 2017, Lindsay Lin, the Program Manager at Lightyear, mentioned a reference to 1000 transactions per second (tps).
As reported by forestsuggest.com, Stellar outperformed Ethereum and similar platforms in transactions processing speed, taking the lead in transactions per second in the year 2021.
2. Ripple (XRP)
Did you know that unlike many other cryptocurrencies, Ripple doesn’t require mining for new coins?. All 100 billion XRP tokens were created at the inception of the blockchain, making it a pre-mined cryptocurrency. Only 40% of the entire volume is currently being traded on exchanges presently and Ripple Labs manages the remaining 60% itself. This unique feature sets it apart from traditional mining-based cryptocurrencies like Bitcoin and Ethereum.
Read More: Types of Web3 Wallets
In 2021, Ripple achieved a remarkable milestone, processing over 25 transactions per second and facilitating more than 2.2 million daily transactions. Launched in 2012 under the name Opencoin by 3 computer engineers with high interest in Bitcoin, Ripple (XRP) functions as a digital payment protocol, enabling cost-effective and nearly instantaneous international transactions.
A prominent feature of this blockchain network is its remarkable transactions speed. Transactions are settled on the XRP Ledger within 3-5 seconds, as indicated on the official Ripple website. Now, the blockchain network can process up to 1,500 to 2,000 transactions per second.
This exceptional transactions speed is attributed to its distinctive consensus algorithm which was purposely crafted to validate transactions instantly. Ripple Labs did a great job of setting itself apart by implementing its distinctive consensus algorithm called the Ripple Protocol Consensus Algorithm (RPCA). This is a far cry from the conventional blockchain networks that utilizes proof-of-work or proof-of-stake algorithms.
In comparison to other cryptocurrencies such as Bitcoin and Ethereum, Ripple’s swiftness stands out as a notable advantage.
3. TRON
TRON is another blockchain platform known for its impressive transactions speed. It was founded by Justin Sun, a well-known entrepreneur and protégé of Jack Ma, the founder of Alibaba Group. Justin. Also known as Tronix, TRX serves as the native cryptocurrency of the Tron blockchain.
On 28th February, TRON Community tweeted that TRON [TRX] outpaced other major cryptocurrencies like Ethereum [ETH], Bitcoin [BTC], and Ripple [XRP] in terms of TPS (transactions per second). At that moment, TRON’s TPS had reached an impressive 88.20.
The Tron platform was specifically designed to support decentralized applications (DApps), enable smart contract execution, and promote the widespread use of decentralized finance.
The Tron blockchain was definitely built with scalability in mind because how do you explain the performance rate? Also, the network utilizes a delegated Proof of Stake PoS consensus mechanism and side chains to handle a high volume of transactions. This significantly expedites and reduces the expenses associated with the validation process. In comparison to Ethereum’s capacity of handling 25 transactions per second (TPS), Tron’s blockchain achieves an impressive 2000 tps processing speed.
4. EOS.IO
EOS blockchain network is a platform with an open-source nature that empowers third-party developers to build and operate decentralized applications, commonly referred to as dApps. In 2018, EOS launched as a Blockchain platform by Block.one with the primary goal of providing a rapid and flexible framework for decentralized applications (dApps).
Also, EOS.IO stands out as one of the fastest blockchains because of its transactions reaching finality in just 2-3 seconds. As one of the most scalable Blockchain platforms in existence, this powerhouse blockchain can process thousands of transactions per second (TPS) and is capable of handling high-speed transactions like no other!
In comparison to the Bitcoin blockchain, which can handle around 4 TPS, and Ethereum’s approximate 15 TPS, the EOS network boasts an impressive capacity of processing up to 4,000-7,000 TPS. This remarkable speed allows developers to release dApps more swiftly. Also, it ensures that front-end app users do not face prolonged waiting times to confirm message delivery or payment processing.
This lightning transaction speed this network possesses is made possible by EOS’s utilization of a delegated proof-of-stake (DPoS) consensus
In this system, validators, known as witnesses, collaborate to reach a consensus on the next validator responsible for verifying transactions. The voting power of each witness is proportional to their stake, ensuring a streamlined and efficient process.
5. Cardano
Named after Gerolamo Cardano, an Italian polymath and mathematician and considered a global blockchain initiative, Cardano (ADA) stands out as the first peer-reviewed and academically-developed blockchain, backed by a team of experts in the field. The team comprises engineers, academics, and even an Ethereum co-founder, Charles Hokinson. This diverse group made a distinctive choice in 2015—to construct a native blockchain from the ground up.
One of the platform’s primary strengths lies in its exceptional transactions speed. It has the capability to process over 1,000 transactions per second (TPS). During the initial testing of the Cardano chain in 2017, it demonstrated the capability to process up to 257 transactions per second (TPS) and thus, marked for greatness. Now, the current speed surpasses Bitcoin’s transaction capabilities and is on par with other high-speed Blockchain platforms like EOS.
To achieve this remarkable transaction speed, Cardano employs a unique consensus algorithm called Ouroboros. This algorithm utilizes a Proof-of-Stake (PoS) approach and this is what enables the faster transactions processing and higher transactions throughput. Additionally, Cardano has implemented other enhancements to further boost its transactions speed, such as the Hydra Layer 2 scaling solution. This innovation enables multiple transactions to occur simultaneously, thereby increasing transaction throughput even more.
Rumor has it at one point that Cardano would soon start processing 1 million transactions per second. However, the developer has dismissed those rumors.
6. Solana
Solana, developed by Solana Labs, a technology company based in San Francisco in 2020, is a high-performance blockchain network designed for decentralized applications and digital assets. This blockchain platform is specifically aimed at addressing the scalability challenges faced by other blockchain networks.
What sets Solana apart is its combination of two innovative techniques: Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms.
With PoH, each transaction on the Solana blockchain is timestamped using a cryptographic clock, significantly reducing transaction validation time. On the other hand, PoS involves validators, or “stakers,” who verify and add transactions to the blockchain. The fusion of these two methods enable it to process transactions at an impressive speed of 3,000-65,000 TPS (with theoretical capacity reaching up to 710,000 TPS).
This exceptional transactions speed, combined with its focus on security and cost-effectiveness, makes Solana one of the fastest blockchain networks available. Also, it is an excellent choice for various decentralized applications, including DeFi platforms, gaming, and content delivery.
Solana’s architecture also plays a vital role in achieving its transaction speed as it is designed to be highly parallelizable. This means multiple transactions can be processed simultaneously, leading to enhanced throughput and scalability.
Additionally, Solana utilizes a unique mechanism called Tower BFT. This serves as an extra tool to ensure swift block confirmation times while maintaining network security and decentralization. Also, this combination of innovative techniques makes Solana a leading contender in the quest for a scalable blockchain platform.
Overall, Solana stands out as one of the fastest and most efficient blockchain networks available today. It has positioned itself to play a pivotal role in the ongoing expansion and advancement of decentralized technology.
7. Ethereum 2.0
Ethereum’s co-founder, Vitalik Buterin, was just 19 years old when he published the Ethereum whitepaper, outlining the vision for the platform.
Now, Ethereum is one of the most prominent blockchains. Also, it is in the process of transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism with Ethereum 2.0. One of the most noteworthy advancements of Ethereum 2.0 is its potential to dramatically increase the platform’s transactions speed.
While Ethereum 1.0 struggled with around 15 TPS, Ethereum 2.0 is projected to offer an astounding leap in scalability. Estimates suggest that it could ultimately process up to 100,000 TPS. This exponential boost in transactions speed is set to open new horizons for decentralized applications, decentralized finance, and various other use cases. Ultimately, fostering a more seamless and dynamic blockchain ecosystem.
8. Cosmos Hub(Atom)
In 2014, Cosmos was founded by two Software Engineers, Jae Kwon and Ethan Buchman. Their vision was to establish a decentralized network consisting of autonomous and interconnected blockchains and it was this vision that conceived the Cosmos ecosystem. This ecosystem was designed to facilitate decentralized and trustless communication and data sharing among diverse blockchains.
Additionally, this interconnectedness facilitates collaboration between blockchains, streamlining the development of decentralized applications (DApps) by developers and enhancing user accessibility.
Fueling the Cosmos network is the Tendermint consensus algorithm, masterminded by the two visionaries, Buchman and Kwon. Tendermint is renowned in the blockchain industry for its robustness, efficiency, and scalability. Also, because it is built on a Byzantine Fault Tolerance Protocol(pBFT), Tendermint core maintains its functionality even and especially when a certain proportion of network validators experience failures. Due to this choice of consensus mechanism, Cosmos can process up to 10,000 transactions per second.
- Block Finality Time: 1-2 seconds
- Low transaction fees: $0.01
- Transactions Per Second (TPS): 10,000
- Validator Nodes: 175
- Nakamoto Coefficient: 8
9. Waves
This blockchain platform is a unique and energy-efficient one that is designed for building custom digital assets and decentralised applications using blockchain. As opposed to the usual consensus mechanisms, Waves uses a consensus mechanism called Leased Proof-of-Stake (LPoS). This is a modified version of Bitcoin’s proof-of-stake algorithm that reduces the time required to validate transactions. As a result of the modification, it allows for high and impressively fast transaction speed. It can process up to 6,000 transactions per minute and 100 transactions per second.
Also, it replaces the energy-intensive Proof-of-Work (PoW) algorithm with a more efficient and environmentally friendly mechanism. This further allows the network to process transactions more quickly.
Additionally, Waves implements a sharding protocol to divide the network into smaller segments, or shards. With sharding, the overall transaction processing capacity increases, and each shard can handle a certain amount of transactions independently. This parallel processing capability significantly improves the TPS of the network.
Lastly, to enhance TPS, the platform introduced smart accounts and dApp (decentralized application) optimization. By reducing the complexity of executing smart contracts and making them more streamlined, Waves achieves faster processing times. All of these applications combined have helped to increase Waves TPS overtime.
10. NEO
Originally created under the name Antshares by Da Hongfei and Erik Zhang in 2014, it was rebranded and renamed Neo in 2017. This blockchain platform implements smart contracts. Also, it is designed to be used in building a smart economy where anyone can create and transact decentralised products and services.
Neo utilizes a unique consensus mechanism called Delegated Byzantine Fault Tolerant (dBFT). This is as opposed to the mainstream delegated Proof of Stake or Proof of Work. However, the dBFT is similar to quite a number of Proof of Stake mechanisms in more ways than one.
In 2020, the Neo St Petersburg Competence Center released a document detailing Neo3’s performance result and latest improvements. The team evaluated that the second version of dBFT, that is the dBFT 2.0 could process 1,000 transactions per second at the time. The founders then realized that with the right optimization, NEO could process a minimum of 10,000 tps. The vision was eventually actualized. Now, NEO can process up to 10,000 transactions per second and that’s with an average time of 15 seconds.
Summary
A high TPS rate allows more transactions to be executed within a given time frame. It is particularly important for financial applications, decentralized exchanges, gaming platforms, and any other use cases that require near-instantaneous transaction confirmations.
Also, the top 10 blockchains with the highest TPS each bring their own unique strengths to the table. As the blockchain ecosystem continues to evolve, we can expect even greater TPS achievements that will fuel the innovation and progress of this technology.
