Cryptocurrencies have made it possible for the finance industry to carry out transactions without the need for a central authority (e.g., banks, financial institutions, etc.) while publicly uploading the transaction details. Irrespective of this transparency, the identities of all members are hidden, and they can perform transactions anonymously. All the information related to cryptocurrency transactions is stored in a distributed public ledger, otherwise called the blockchain.
The tasks of recording, renewing, and handling the blockchain are the responsibilities of members of the blockchain network, whose identifies are anonymous. These anonymous users are given rewards in order to carry out these responsibilities, thereby keeping the network updated and functioning. Although the system is maintained by people whose identities aren’t disclosed, because of the computational infeasibility of copying digital signatures and breaching the security of cryptography algorithms, making any changes to the transactions is almost impossible. Moreover, the integrity of the cryptocurrencies remains protected as long as this level of security is promised by cryptographic algorithms.
Cryptocurrencies as a new way of carrying out transactions have gained widespread popularity in recent years. However, statistical studies on cryptocurrency transaction speeds have been inadequate and mostly dedicated to Bitcoin, with no thorough comparison between other cryptocurrencies.
Transactions per second:
- Harmony (ONE): 13000
- Ripple (CCC: XRP-USD): 1,500
- PayPal: 193
- Bitcoin Cash (CCC: BCH-USD): 60
- Litecoin (CCC: LTC-USD): 56
- Dash (CCC: DASH-USD): 45
- Ethereum (CCC: ETH-USD): 20
- Bitcoin (CCC: BTC-USD): 7
Here’s what stands out about this cryptocurrency-speed data
The first thing that stands out is how far ahead Harmony (ONE) is from the rest of the lot. Launched as a major part of the initial exchange offering (IEO) on the Binance Launchpad in May 2019, Harmony (ONE) is an open, decentralized blockchain platform developed to bridge the gap between scalability and decentralization. Moreover, it intends to build an open network of nodes maintained and governed by a large community called Pangea.
The aim of this project is to provide a consensus protocol through Open Internet with 10 million transactions per second and a latency of 0.1 seconds, 0.1% fee compared to the transaction value. Harmony aims to accelerate and capacitate up to 1000 times, expanding the market to approximately 10 billion people and 100 billion devices.
It might also come surprisingly at just how quietly Bitcoin and Ethereum perform compared to their competitors. Both the cryptocurrencies process a mere 7 and 20 transactions per second, respectively. In any case, both their blockchains are being scaled significantly more than Dash and Ripple. The major fact that both Bitcoin and Ethereum are renowned is a big reason it takes longer to process and clear transactions on these networks. While it doesn’t explain slow processing times, it does help underline the big gap.
On the other hand, both Dash and Litecoin have faster transaction speeds and lower costs compared to Bitcoin and Ethereum. Dubbed as “Bitcoin-Lite,” Litecoin has the aim of considerably growing its merchant network. Just like Harmony, Litecoin could very well be one of the greatest competitions Bitcoin faces.
Harmony is not the first project to offer this kind of TPS (Transactions Per Second), but what makes Harmony more reliable than other projects (e.g., Credits, TIM Blockchain, etc.) is that they have an experienced team who had worked on Microsoft, Google, and Apple before, so future developments would definitely be on the mark. In terms of technology, 10 million TPS is possible with a blend of the right System Tools, Consensus Protocol, and Transport Network.
By the end of 2021, Harmony aims to be a top blockchain for the cross-chain financial system. Bitcoin is facing issues with slower transactions currently, but you would be able to buy a pizza from your favorite outlet a few years from now, thanks to Harmony.
Author: Arpit Sharma
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