I recently read a blog post by a web development company that said: “Blockchain is slow and usesless.”
Well.. I had to say something.
Yes, there is a lot of talk about Crypto, Bitcoin and cryptocurrency in general lately.
And one of the main negative talking points is this: Crypto is slow, much slower in fact than traditional tech.
Is it really?
Ok, generally speaking, sure some projects are slower than traditional transactions, for example VISA claims it can do 1,700 transactions per second and Bitcoin can process 7 transactions per second if the user is not on Lightning network. That looks very slow, and bad, right?
But. What exactly is that traditional VISA transaction? It’s just a number in a database. It’s very simple tech compared to Blockchain.
Cryptocurrency transaction speed might be slower at the moment because of these facts.
Still being fairly young technology
Sure, transactions can take some time to process, but that is changing, rapidly. And some of the above “issues” are actually features that make it tremendously more useful than traditional financial STACK.
Let’s talk about TPS (transaction speed per second) on some more advanced and proven projects.
Algorand cryptocurrency is created to be a payments-focused network with lightning fast transactions, high level security, smart contracts and near-instant finality.
Algorand currently has the ability to process 1,000 transactions per second, and it also achieves transaction finality in 3-4 seconds. That is huge.
What exactly is (TF) Transaction Finality?
It’s the guarantee that cryptocurrency transactions cannot be change, reversed, or canceled after they are completed.
Solana is a high throughput, low latency, smart contract blockchain platform that has proven it can process 50,000 transactions per second. It’s still in development, and it has incredible investors, developers, and backing by the community.
I should also mention these projects
- Cardano 1,000 TPS
- EOS 2,000 TPS
- Stellar Lumens 1,000 and up to 5,000 TPS
- Polkadot 1,000 TPS
- Ethereum 2.0 (still in development) Expected to proces 100,000 TPS in the near future.
So calling Blockchain and Crypto slow and useless is very silly. You are making a statement without actually understanding the technology behind it and in what stage is that tech in.
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Author: Muamer Mujevic
Digital business strategist & CEO at Iconis Digital