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4 Cryptocurrencies That Process Transactions Much Faster Than Shiba Inu

4 Cryptocurrencies That Process Transactions Much Faster Than Shiba Inu
Written by publisher team

With the current banking infrastructure, it can take up to a week for cross-border payments to be validated and settled. It’s what consumers and businesses have been accustomed to for decades, but it doesn’t have to be the norm moving forward.

The advent of blockchain technology provides a means to transfer funds, contracts, and files from point A to B in a much shorter time frame and at much lower costs. Most importantly, blockchain technology can democratize finance by opening doors for those who currently lack access to basic financial services.

Ideally, the best blockchain projects and networks are the ones that investors should reward. But it doesn’t always work that way.

Shiba Inu-themed coins have inspired major gains in the crypto space this year. Image source: Getty Images.

Shiba Inu rises, but lacks real-world appeal

Since its debut in August 2020, the meme coin Shiba Inu (CRYPTO: gray hair) Historic gains have caught fire. As of late evening on November 13, 2021, SHIB tokens had gained around 10,600,000%. In other words, if you had invested $10 in SHIB on day one, you would be a millionaire today.

For Shiba Inu, there was no shortage of stimuli. For example, there has been a fairly steady stream of crypto exchanges accepting SHIB for listing. More listings means better liquidity for the token, a bigger community, and more awareness.

Tesla Motors CEO Elon Musk is another catalyst for Shiba Inu. The richest person in the world adopted a Japanese dog Shiba Inu in June, and named him Floki. Anytime Musk tweets about his dog or posts a meme containing a Shiba Inu, investors take it as a hint to them to accumulate SHIB coins (or other Shiba Inu-inspired coins).

But what Shiba Inu doesn’t do particularly well is process transactions efficiently. As an ERC-20 token based on a file Ethereum The blockchain, Shiba Inu is hostage to the popularity of the Ethereum network, which comes with high transaction fees and settlement delays.

These cryptocurrencies process transactions significantly faster than Shiba Inu

The truth is that there are a number of other cryptocurrencies that offer very fast processing and settlement, compared to Shiba Inu. Here are four blockchain projects with real-world appeal and long-term potential.

The XRP token is set in silver over a circle representing the blockchain.

Image source: Getty Images.

XRP: 3-5 seconds

It can be said that the most famous of these four cryptocurrencies is lightning fast XRP (CRYPTO: XRP), the original currency of the digital payment platform RippleNet. According to Ripple, which oversees RippleNet, the average cross-border XRP transaction can materialize and settle in about three to five seconds. This definitely beats the one-week waiting time with existing infrastructure, or the potential lag associated with Ethereum during peak usage periods.

The key to XRP’s efficiency can be found in its consensus mechanism. Instead of relying on Proof of Work, XRP relies on Unique Node Lists, or UNLs. According to XRP Ledger, the distributed ledger database that RippleNet operates on, UNLs are lists of validators that participants believe they will not defraud.

XRP has had quite a few high profile partnerships over the past couple of years. This includes working with Santander Bank In a cross-border payment service known as One Pay FX, in addition to working with it previously MoneyGram International For quick cross-border payments.

Silver-tone Stellar Lumen symbol with rocket ship logo.

Image source: Getty Images.

Excellent: 4-5 seconds

Another blockchain project very similar to XRP is excellent (CRYPTO: XLM). Stellar focuses on speeding up the processing and settlement of cross-border payments, and demands settlement of transactions in its ledger on average from four to five seconds.

Aside from the exceptionally fast processing times, the real lure of Stellar may be its transaction fees. The cost of completing a transaction on a Stellar network typically runs at 0.00001 Lumen (XLM, network protocol symbol). Based on the current price of XLM at $0.3729, the average transaction cost is approximately $0.0000037. It will take about 269,000 transactions for a subscriber to collect the equivalent of $1 in fees.

Although Stellar does not have a resume of partnering with XRP, its network was used by dozens of major banks in the South Pacific four years ago.

A person holds a glowing golden padlock surrounded by grid works representing blockchain nodes.

Image source: Getty Images.

Nano: less than one second

For transaction speed to “blink and you’ll miss it”, really consider an off-the-radar cryptocurrency nano (CRYPTO: nano). Nano describes itself as “the fastest decentralized currency in existence, with an average transaction time of less than one second.”

What makes Nano so fast is its blockchain-lattice. Instead of using a single blockchain, each user has their own blockchain which they can add to. This means not having to compete with other users for blocks and, presumably, the ability to rapidly scale the nano-block network. The key point here is that the block network ensures that no slowdown occurs in the network while it is scaling.

And if you think Stellar transaction fees are low, you’ll love Nano. Incorporating open representative voting, which allows authorized representatives to vote on the validity of individual blocks on the network, helps ensure that transactions are free. Yes, Transactions without fees!

A digital map of the world, partially populated with binary code and blockchain nodes.

Image source: Getty Images.

Algorand: Approx. 4.4 seconds

A fourth cryptocurrency project with ultra-fast processing speeds is a relative newcomer Algorand (encode: something). Data taken directly from the Algorand website on November 13 showed a 4.41-second block end, making it one of the fastest validating and settlement decentralized blockchains on the planet.

A notable differentiation factor with Algorand is its consensus mechanism. Instead of relying on the traditional Proof of Stake model, Algorand employs what it refers to as pure Proof of Stake, or PPoS. With PPoS, users are randomly and secretly chosen to propose blocks and vote on block proposals. According to Algorand, the only way to boost users’ chances of choice is to increase their share. Since large holders have no incentive to reduce the purchasing power of their stake, PPoS is a seemingly ideal way to ensure that no malicious actors are negatively impacting the fast-paced and highly decentralized blockchain network.

Although expectations are that Algorand’s blockchain will be used to host an ecosystem of smart, contract-backed decentralized applications, it is hard to ignore the payment potential of a scalable network that will never break.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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