In recent years, cryptocurrency has taken the globe by storm, with people from all walks of life investing in digital assets. Blockchain technology, which underpins cryptocurrencies, is now being used in other areas such as supply chain management and healthcare.
However, one of the most common criticisms of Bitcoin, the world’s largest cryptocurrency, is its poor transaction speed. Bitcoin can take between 40 and 90 minutes to fully process from start to finish. This might be aggravating for consumers, particularly if they are in a physical establishment with tight payment policies or are attempting to make a time-sensitive purchase.
Sending Cryptocurrency
The process of sending cryptocurrency, such as Bitcoin, from one wallet to another is relatively simple.
You must first know your recipient’s Bitcoin address. If you’re working with another form of cryptocurrency, you’ll also need to know the correct wallet address.
Once you’ve gathered this information, open your wallet app and paste the address into the “Send To” space. Then, enter the amount of Bitcoin you wish to transfer and press the confirm button.
The procedure will then begin, and you will just have to wait for the transaction to be completed. This might take anything from a few minutes to an hour, depending on the coin you’re using and the network circumstances. Bitcoin transactions typically take the longest.
How to Send Crypto Transfers Faster
The poor speed of Bitcoin transactions is a problem that all cryptocurrency traders must be aware of when dealing with this digital asset.
Is it, however, genuinely unavoidable?
It turns out that there are a few workarounds that might help you send cryptocurrency to your recipients more quickly. Here are a few choices.
1. Use Bitcoin Lightning Network
Using the Bitcoin Lightning Network is one approach to speed up Bitcoin transactions. On top of the Bitcoin network, the Lightning Network is a second-layer solution.
The Lightning Network enables two participating nodes to establish a direct connection between themselves. These nodes can then perform a limitless number of transactions without waiting for blockchain confirmations.
The Lightning Network also reduces the security risks associated with off-chain solutions. This is because all Lightning Network transactions are still processed on the mainnet Bitcoin blockchain.
So, how does this speed up crypto payments? The Lightning Network, on the other hand, has a very scalable structure. This indicates that the network can process a huge number of transactions in milliseconds. Because the network does not require PoW confirmations, energy costs are also considerably reduced.
In principle, it’s a fantastic idea. However, there are some drawbacks. To begin with, this network charges fees to initiate and terminate a payment channel. There is also a little routing cost that goes to verifying nodes. This may drive miners away because they are not sufficiently rewarded for validating these transactions.
2. Using other cryptocurrencies
While there is nothing that can be done to speed up initial Bitcoin transactions, alternative cryptocurrencies that offer higher transaction speeds can always be used.
Here are several cryptocurrencies you may use to make quicker crypto payments.
Ethereum: When it comes to transaction speeds, Ethereum is one of the finest Bitcoin alternatives. A transaction in Ethereum takes only 5 minutes to process, which is 10 times quicker than Bitcoin.
Cardano (ADA): Cardano is a Proof-of-Stake cryptocurrency that prioritizes transaction speed. ADA transactions take a little slower than Ethereum transactions, although they are still far faster than Bitcoin transactions. Cardano transactions are confirmed in about 10 minutes.
Ripple (XRP):
When compared to other cryptocurrencies, XRP is the fastest to transfer payments with. It’s also reasonably priced, with only a few costs.
A single XRP transaction is immediate, therefore delays are minimal. This is due to its consensus process, which does not need mining.
Why is Bitcoin transaction slow?
Bitcoin is deliberately designed to be slow. To clarify, Bitcoin blockchain confirmations are protected through the use of a Proof-of-Work (PoW) process.
When a transaction is requested in this approach, Bitcoin network validators must solve a challenging arithmetic problem through a predetermined succession of nodes. When the solution is found and the nodes achieve consensus, the transaction is recorded on the blockchain, and a new block is formed.
This technique is required for several reasons. For one thing, it protects the privacy and personal information of the individual doing the transaction.
One of the key advantages of cryptocurrency is its decentralized structure, which allows users to stay anonymous, which is beneficial to users. The PoW method also prevents unauthorized data manipulation and prevents fraudulent actions. This reduces the possibility of blockchain vulnerability.
Although PoW algorithms are safe and effective in and of themselves, they do have drawbacks. Long downtimes are a prime example.
This delay can be exacerbated further by the fact that Bitcoin’s mempool is frequently busy. The mempool serves as a repository for all unconfirmed transactions.
When too many people make Bitcoin transactions at the same time, it takes longer for a transaction to be formally confirmed. This can result in delays of up to an hour and thirty minutes.