Altcoins are increasingly gaining value due to their high transaction speeds and low fees, making international money transfers fast and cost-effective. As the demand for efficient and secure transactions grows, both investors and platform users are seeking the best-performing altcoins. Here are seven altcoins with high transaction speeds.
Solana (SOL)
Solana stands out with its impressive transaction capacity, reaching up to 65,000 transactions per second (TPS). Launched in March 2020, Solana uses innovative consensus mechanisms like Proof of History (PoH) and Proof of Stake (PoS) to achieve this success.
PoH significantly increases efficiency by allowing the network to verify the order of transactions without relying on timestamps. This makes Solana ideal for real-time applications like decentralized finance (DeFi) and blockchain-based games.
Avalanche (AVAX)
Avalanche is known as an altcoin project for its speed, cost-effectiveness, and interoperability. Using the Avalanche Consensus Protocol (ACP), it can reach approximately 4,500 TPS by creating mini-networks for parallel transactions.
Launched in September 2020, Avalanche’s low transaction fees make it a popular choice for small payments. This combination of features positions Avalanche as a top contender for users seeking fast and affordable transactions.
Algorand (ALGO)
Created in 2017 by MIT Professor Silvio Micali, Algorand offers high transaction speeds with a capacity of 6,000 TPS. Initially limited to 1,000 TPS, a platform update in June 2021 significantly increased its speed.
Algorand uses a Pure Proof of Stake (PPoS) consensus mechanism, providing instant and irreversible transaction confirmation. This makes it attractive for applications requiring real-time settlement, such as micro-payments and fast transactions.
Polygon (MATIC)
Polygon operates as a sidechain to Ethereum, reaching a capacity of 65,000 TPS. It uses a PoS consensus mechanism for fast block confirmations while leveraging Ethereum’s security.
Despite its reliance on Ethereum, Polygon’s approach makes it a scalable and secure option for developers building decentralized applications.
Cosmos (ATOM)
Cosmos features a modular architecture that allows individual blockchains in its network to achieve different transaction outputs, with some regions offering a capacity of 10,000 TPS. Its scalability is driven by the Tendermint Byzantine Fault Tolerance (BFT) consensus mechanism, which facilitates block validation.
Cosmos also uses the Inter-Blockchain Communication (IBC) protocol for seamless communication and asset transfer between regions.
Fantom (FTM)
Fantom offers a capacity of 2,500 TPS using the innovative Lachesis system, a Directed Acyclic Graph (DAG) that allows for parallel transactions.
It ensures security through Asynchronous Byzantine Fault Tolerance (aBFT), maintaining network consensus even if some validators are unavailable or malicious. This combination makes Fantom a unique and efficient blockchain network.
Helium (HNT)
Helium focuses on data transfer for Internet of Things (IoT) devices and has a capacity of 1,000 TPS. This low transaction speed is optimized for IoT needs, enabling efficient machine-to-machine communication. Helium’s focus on speed and data transfer makes it a significant player in providing robust and efficient network solutions in the IoT world.
Importance of Transaction Speed in Blockchain Networks
Transaction speed is crucial for the adoption and usability of a cryptocurrency, affecting user experience through instant fund transfers and real-time financial transactions. High transaction speeds increase efficiency, saving time and money for users and businesses. Conversely, low speeds can lead to missed opportunities and dissatisfaction.
Therefore, high transaction speeds are essential for the effective operation of decentralized applications and smart contracts, making these seven cryptocurrencies the best options for fast and efficient transactions.
