Ripple (XRP) has a reputation for being one of the fastest cryptocurrencies, but the average Nano (NANO) transaction takes 3 seconds—7 seconds faster than XRP. What is Nano and why is it the fastest cryptocurrency on Binance, significantly faster than XRP?
Keep in mind that the developers behind it recently changed the call-sign from XRB to NANO. However, you may occasionally still see it listed as XRB.
Nano (NANO): the Lesser Known Cryptocurrency 300% Faster Than Ripple
The average Nano transaction takes 3 seconds. More specifically, it takes the network 3 seconds to confirm a transaction on a block. According to Bitcoin Kit, this makes it the fastest cryptocurrency on Binance, a cryptocurrency exchange with over 2,000 listings.
By comparison, XRP, the cryptocurrency used on the Ripple network, takes 10 seconds to verify a block and finalize a transaction according to the same source. Why can this cryptocurrency process transactions faster than XRP?
A Unique Blockchain
The blockchain on which you can exchange Nano is structured differently than others. Specifically, each person has a unique blockchain. And instead of having transactions represent the amount exchanged, they record account balances. Only the account holder can alter their account-blockchain.
This means is that in order for the network to accept it, a transaction must be recorded on two blockchains: that of the sender and that of the receiver. In this network, a block represents a single transaction.
By comparison, thousands of transactions can make up a Bitcoin block, and a Bitcoin transaction is not processed until at least one subsequent block has been created. This means that a Bitcoin transaction can take hours, while a these transactions takes seconds.
How It Compares to XRP
Both these cryptocurrencies are a lot faster than Bitcoin. Remember that XRP and Ripple are not the same: though Ripple Labs designed XRP, the cryptocurrency, it runs independently of Ripple, the software company. In other words, Ripple, the company, uses XRP, the cryptocurrency, to facilitate transactions between different fiats, meaning government-back currencies, often for banks and credit card companies. However, one can invest in XRP, independently of this process, on a cryptocurrency exchange.
The Ripple (XRP) blockchain functions based on consensus. Instead of Proof-of-Work or Proof-of-Stake, nodes vote on transactions. If an address initiates two transactions simultaneously, the nodes will decide which was first in order to prevent double spending. This is when someone spends the same cryptocurrency twice; it’s a common type of cryptocurrency theft.
According to Ripple’s own estimates, an XRP transaction takes 4 seconds.
Nano (NANO) Transactions Are Faster than Ripple’s (XRP)
Do XRP transactions take 4 or 10 seconds? In short, it depends on the exchange. A Ripple transaction can theoretically take a mere 4 seconds, but that does not mean that the average one is 4 seconds.
According to Bitcoin Kit, XRP transactions on Binance take 10 seconds. At 3 seconds, NANO transactions are the fastest on Binance. The second and third fastest are Stellar Lumens (XLM) and ICON (ICX) at 5 and 6 seconds, respectively.
Calculating Transaction Speed Time
How do you calculate transaction speed time? Transaction speeds depend on a lot of variables and are subject to change. Additionally, cryptocurrencies structure transactions differently, depending on the type of blockchain. This affects speed.
Cryptocurrencies and exchanges can require different numbers of confirmations. For example, a Bitcoin transaction confirmation occurs when a transaction is 6 blocks deep. In other words, it’s too deep within the blockchain for someone to attack and reverse it.
Specifically, Poloniex requires 12 confirmations for Ripple (XRP) transactions. As as a result, an XRP deposit takes 2 minutes on average, or 10 seconds per transaction confirmation. On Kucoin, Nano deposits take 36 seconds because the exchange also requires 12 confirmations.
Keep in mind that these cryptocurrencies are not always listed together. So specifically, Nano is 7 seconds faster than Ripple when depositing into Binance. In this case, both cryptocurrencies require only one confirmation.
Nano (NANO): The Fastest Cryptocurrency on Binance
Nano (NANO), which is in the top 40 cryptocurrencies based on market cap, is the fastest cryptocurrency on one of the biggest cryptocurrency exchanges. Specifically, depositing it into Binance takes 3 seconds. By comparison, an XRP deposit takes 10 seconds. This means that Nano is over 300% faster than Ripple.
What does this mean for cryptocurrency? For one, it demonstrates that blockchains can have different structures, which promotes different usages. And the speed of these transactions demonstrates that cryptocurrency can be an effective means of exchange, not just an investment.
However, the question remains: Will there be one standard for cryptocurrency transactions? And, if so, will it be an up-and-coming cryptocurrency like NANO or XRP, using Ripple’s xRapid, a new protocol for international transactions?