There’s no denying that the last couple of years have seen the crypto market grow exponentially, as is highlighted by the fact that the total capitalization of this fast-growing space doubled from $1 trillion to $2 trillion over the course of Q2 2021 alone. Not only that, there is enough data to suggest that this ongoing momentum is here to stay, with a recent report noting that the digital asset industry is all set to grow at a Compound Annual Growth Rate (CAGR) of 11.2% over the coming 5 years.
And while innovations like non-fungible tokens (NFTs) have hogged the bulk of the limelight when it comes to a crypto tech recently, it should be noted that with each passing day, an increasing number of people are also beginning to realize the potency offered by digital assets when it comes to facilitating one’s daily payments. This is because crypto transfers are not only cheaper but also extremely fast when compared with almost every other traditional payment gateway.
For example, while SWIFT and PayPal transfers can cost users anywhere between 3%-5% of their total sum (along with an additional conversion fee), crypto transfers are usually facilitated at just a fraction of this cost. In fact, platforms like Solana, Polkadot, Nano allow for voluminous financial transactions (worth millions of dollars, if required) to take place for less than a dollar, that too in an almost instantaneous fashion.
In its most basic sense, Nano can be thought of as a decentralized, sustainable, and secure form of digital money that seeks to address many of the inefficiencies that currently affect the global finance ecosystem. Further elaborating on the utility of the network, Naomi Jones, Communications Manager for The Nano Foundation, highlighted:
“Nano is uniquely designed to provide users with a simple peer-to-peer transfer of value, connecting them to the global economy with minimal impact. The platform provides an intuitive experience that feels like digital currency should – no fuss, no fees, no waiting. This is what an accessible and easy-to-use digital money experience should feel like.”
No list of this kind can be complete without mentioning Bitcoin, the OG cryptocurrency that has paved the way for every other P2P payment system in existence today. And even though the project features a transaction throughput rate that is comparatively quite low when compared with many of its rivals — 7 transactions per second or 600k transfers per day — in recent years, more and more people are beginning to make use of layer-2 solutions such as the Lightning Network to circumvent such issues.
It was only natural that Ethereum, the world’s second-largest crypto by total capitalization, trailed Bitcoin on our list, especially since ETH has become the preferred choice for cross-border transactions for many crypto enthusiasts over the years. And while the platform does suffer from its fair share of inadequacies at the moment (a low transaction rate of 15 TPS and relatively high gas fees), all that is set to change as the project makes its much-awaited switch to a proof-of-stake (PoS) consensus mechanism next year, potentially allowing the network to increase its throughput capacity to around the 100k tps mark.
Built for speed, Solana is a project that has gained an immense amount of mainstream traction over the course of 2021. This is because the platform comes packed with all the features necessary to make it an amazing payment ecosystem. For starters, it features a throughput rate of nearly 50,000 TPS, however, in addition to being a viable payment avenue, it is also designed to serve as a foundational base where devs can come and devise a whole host of unique dApps. That said, over the last few months, an increasing number of people have continued to highlight the fact that Solana’s speed comes at the cost of its security, an aspect that the project’s devs seem to be actively working on.
Since its very inception, Ripple’s XRP token was designed to help facilitate the workings of a massive international payment system, which over the years has grown to incorporate a number of traditional banking giants including Santander, Axis, and Yes. The project features a high throughput rate of 1500 TPS, however, the only knock on the platform is that it is relatively more centralized in comparison to all of the other projects listed above — something that goes against the foundational ethos of crypto tech.