How to send faster crypto transfers
Cryptocurrency has taken the world by storm in recent years, with people from all walks of life investing in digital assets. The technology underlying cryptocurrency, blockchain, is also being implemented in other industries such as supply chain management and healthcare.
However, one of the biggest criticisms many people have of Bitcoin, the world’s largest cryptocurrency, is its slow transaction speed. Bitcoin can take 40 to 90 minutes to fully process end-to-end. This can be frustrating for users, especially when they are in a brick-and-mortar store with strict payment rules or trying to make time-sensitive payments.
Fortunately, there are a few things you can do to speed up your crypto transfers. In this article, we will share with you some tips on how to send faster cryptocurrency transactions.
How to send cryptocurrency
If you are send cryptocurrency like Bitcoin from one wallet to another, the process is pretty straightforward.
You must first know the recipient’s Bitcoin address. If you are dealing with any other type of cryptocurrency, you need to know the correct wallet address for that as well.
Once you have this information, simply go to the Wallet app and copy the address into the Send To field. Then select the amount of cryptocurrency you want to send and press confirm.
The process will then start and you simply have to wait for the transaction to be processed. Depending on the cryptocurrency you are using and network conditions, this can take anywhere from a few minutes to an hour. Bitcoin’s transaction time usually takes the longest.
How to send faster crypto transfers
The slow speed of Bitcoin transactions is a problem that all crypto traders must be prepared for when dealing with this digital asset.
But is it really inevitable?
It turns out that there are a few solutions that can help you send crypto to your recipients faster. Here are those options.
1) Use the Bitcoin Lightning Network
One way to make Bitcoin transactions faster is to use the Bitcoin Lightning Network. The Lightning Network is a second-layer solution built on top of the Bitcoin network.
Lightning Network enables two participating nodes to create a direct channel between each other. These nodes can then perform an unlimited number of transactions between each other without having to wait for blockchain confirmations.
The Lightning Network also reduces the security challenges that come with off-chain solutions. This is because all transactions performed on the Lightning Network are still performed on the mainnet Bitcoin blockchain.
So how does this make crypto payments faster? Well, the Lightning Network has a highly scalable system. This means that the network can handle a large number of transactions and process them in just milliseconds. Energy costs are also greatly reduced as the network does not require PoW confirmations.
It’s a great concept in theory. However, there are drawbacks. First, this network charges fees to open and close a payment channel. There is also a low routing fee that goes to the validation nodes. This can push miners away as they are not incentivized enough to validate these transactions.
The Lightning Network is also vulnerable to malicious attacks. That said, if these issues are resolved, the Bitcoin Lightning Network could be a potent tool to solve Bitcoin’s slow transaction speeds.
2) Use other cryptocurrencies
While little can be done to speed up original Bitcoin transactions, you can always use other cryptocurrencies that offer faster transaction speeds.
Here are some of the altcoins you can use for faster crypto payments.
Ethereum (ETH)
In terms of transaction speeds, Ethereum is one of the best alternatives to Bitcoin. Ethereum only takes 5 minutes to process a transaction, which is 10 times faster than Bitcoin.
Cardano (ADA)
Cardano is one Proof-of-Stake altcoin which focuses on delivering fast transaction speeds. ADA transactions take slightly longer than Ethereum, but it is still much faster than Bitcoin. Cardano transactions take around 10 minutes to be confirmed.
Ripple (XRP)
XRP is the fastest crypto to send payments with compared to any other cryptocurrency. It is quite cheap too with minimal fees.
A single XRP transaction is instantaneous, leaving little or no room for delay. This is because of the consensus protocol that does not require mining.
Why is Bitcoin slow in the first place?
Bitcoin is slow by intentional design. To make this clear, it is important to note that Bitcoin blockchain confirmations are secured using a Proof-of-Work (PoW) mechanism.
In this system, when someone wants to make a transaction, Bitcoin network validators will have to calculate a complex mathematical problem through a pre-selected series of nodes. Once the answer is resolved and a consensus between the nodes is reached, the transaction is recorded on the blockchain and a new block is created.
This procedure is necessary for several reasons. First, it helps maintain the privacy and personal information of the person making the transaction. One of crypto’s main appeals is its decentralized nature, which allows users to remain anonymous, so this is a good thing for users.
The PoW algorithm also prevents unwanted tampering with the data and blocks fraudulent activities. This eliminates the risk of vulnerability in the blockchain.
Although PoW algorithms are secure and useful in themselves, they have their drawbacks. For example, long downtimes.
This downtime can also be further compounded by the fact that Bitcoin’s mempool is often overloaded. The mempool is essentially a storage area for all unconfirmed transactions.
When too many people make Bitcoin transactions at the same time, the longer it takes for a transaction to be officially confirmed. This can cause delays of up to one hour and thirty minutes at most.
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