Bitcoin and blockchain technology may give us some insight into the future of payment processing but it sure has a long way to go.
VISA handles on average around 2,000 transactions per second (tps) and peaks around 4,000 tps during high shopping periods. This is just a fraction of their capacity, which is said to be around 56,000 transactions per second.
Paypal, in contrast, handled around 10 millions transactions per day or 115 transactions per second according to data from late 2014.
If we set the benchmark for cryptocurrencies at 4,000 transactions per second, where do we stand as of right now? And what kind of speed will Bitcoin or any other cryptocurrency need to handle even 10 percent of the economic transactions done worldwide?
Today, the Bitcoin network is restricted to a sustain rate of around 7 transactions per second or a little over 600,000 transactions per day. To put this in perspective, Bitcoin could only handle roughly 5 percent of the transactions that Paypal handles everyday!
And what about Altcoins? Is Bitcoin Cash much better at this?
When the fork happened on August 1, 2017, Bitcoin Cash was unleashed and touted as a huge improvement over the current Bitcoin algorithm. As for the transactions per second, Bitcoin Cash is capable of handling around 60 transactions per second. This is a huge improvement but we found one coin that can handle more than 20 times the transactions per second of Bitcoin!
A coin called Denarius [DNR] has been under the radar lately. According to their website and whitepaper, Denarius uses a new “proof of work” algorithm called Tribus – a combination of 3 popular NIST5 algorithms that were created to resist the ability to be calculated by an ASIC (application specific integrated circuit). It also features super fast transactions with a 30 second block times!
The Tribus algorithm helps create an environment where GPU miners can prevail and easily see profitability. This differs from most mining hashes, including Bitcoin, where the prevalence of ASICs has lead to a situation where only those significantly invested in hardware are able to gain any kind of reasonable reward for mining.
So how fast is Denarius? Denarius is able to handle about 147 transactions per second! Over 20 times faster than Bitcoin and twice as fast as Bitcoin Cash. Denarius sets the standard higher for transaction speeds on a blockchain. You can find more information about Denarius at https://denarius.io
Disclaimer: This is a sponsored press release and does not necessarily reflect the opinions of any The Merkle employees. This is not investment or trading advice, always do your own independent research.