There are various factors such as block time and size, network traffic, transaction costs, etc., that are effective in measuring the speed or performance of a blockchain. The most important parameters in measuring the speed of a blockchain are:
The amount of TPS
The concept of TPS, which stands for Transactions Per Second, refers to the number of transactions that a blockchain can process per unit of time. The higher the TPS of a blockchain, the greater the capacity of that blockchain and thus the faster the network.
block time
Block time is the time it takes to mine or generate a new block in the blockchain. The shorter the block time, the higher the performance of the blockchain. Then the blockchain will be faster.
Confirmation time
Confirmation time in a blockchain refers to the time it takes for a transaction to be included in a block of the network and considered final confirmation; In fact, the confirmation time is the same period of time that lasts between the moment of requesting a transaction in the network from the source account to the moment of making the transaction in the destination account, so that it is considered irreversible. Blockchains with less confirmation time are considered faster.
Latency
In the blockchain-based world, latency in a blockchain network measures the time between the initiation of a transaction and its first confirmation. This effective parameter will be one of the factors such as the time of publication in the network, the time of publication in the block and the time of block validation by nodes. Lower latency indicates faster processing of transactions on the blockchain.
Scalability
Scalability is the most important factor that plays a role in the speed of any blockchain and refers to the ability of a blockchain to manage an increase in transaction volume without significantly reducing performance. A scalable blockchain can handle a large number of transactions while maintaining speed and efficiency.
Consensus algorithm
The consensus algorithm used in a blockchain can affect its speed; Some consensus algorithms, such as various proof-of-stake (PoS) methods, are much faster to verify blocks than proof-of-work (PoW) based methods.
Network density
The amount of network congestion or the number of pending transactions in a blockchain can affect the speed of transactions in that blockchain. Traffic and network congestion may result in slower transaction processing times.
In general, there are many criteria that can be used to compare and categorize different blockchains. Scalability and speed is one of the most important components that can be considered in the evaluation and classification of different blockchains; Especially when the performance and applicability of a blockchain is very important and has a direct relationship with the speed of that blockchain in processing and verifying transactions.
Old blockchains
Older blockchains, such as the version used in the Bitcoin protocol, often require several minutes to confirm transactions. These types of networks are often referred to as the first generation of blockchains. The primary goal of first-generation blockchains is to provide an alternative solution for disintermediated payments.
Slow blockchains
The slowest blockchain networks in the world are usually those that use a variety of proof-of-work (PoW) algorithms; Algorithms in which the time to verify and add blocks is relatively long. Blockchains such as Bitcoin and Bitcoin Cash are considered slow networks; Bitcoin Cash is a fork of the Bitcoin network, in which the block verification time, like Bitcoin, is about 10 minutes, and in some cases it can be even longer.
Relatively fast blockchains
Relatively fast blockchains with shorter transaction confirmation times use different algorithms designed for increased speed and greater synchronization capability. These types of networks, also known as second-generation blockchains, aim to be a tool for launching smart contracts and decentralized applications, in addition to providing an alternative solution for payments. Some of the relatively fast blockchains in the world are:
- Ethereum (ETH): Ethereum is an open-source blockchain that originally used the PoW algorithm, but later changed its blockchain to a faster proof-of-stake algorithm. For this reason, compared to the first generation blockchains that use PoW, the block verification time is less. Then it is more scalable.
- Binance Smart Chain: The Binance Smart Chain network is a centralized blockchain that uses a proof-of-stake algorithm. The speed of confirmation of transactions in Binance Smart China is approximately 3-5 seconds.
Blockchains under 5 minutes
Blockchains whose block formation time is less than 5 minutes are currently known as fast blockchains. Some of the most famous cryptocurrency projects whose blockchain verifies transactions in under 5 minutes are:
- Cardano (ADA): The Cardano blockchain has the power to process 250 transactions per second. This blockchain verifies transactions between 5 and 10 seconds.
- Ripple (XRP): The Ripple blockchain can process 1,500 transactions per second. The speed of creating a block in this blockchain also takes between 5 and 10 seconds.
Blockchain under 1 minute
Blockchains that confirm transactions in less than a minute are among the newest blockchains that often support many features such as smart contracts, decentralized applications, etc., and are also considered very fast; Because they have high scalability. Some of the blockchains that confirm the transaction in less than 1 minute are:
- Solana (SOL): Due to its unique technology, the Solana blockchain is currently the fastest blockchain in the world and verifies transactions in less than a second. This blockchain is also known as the most scalable blockchain in the world.
- Phantom (FTM): The speed of transaction confirmation in the Phantom blockchain is 1-2 seconds.
In general, it is important to note that the numbers and figures presented in this post are approximate, because they are averaged over different time periods; In other words, it is not possible to say exactly what the final confirmation time of each transaction is in a blockchain-based network, because this issue varies in different time frames and depending on the amount of congestion or traffic in the volume of requests.