Take a moment and consider what you think of as a ‘good’ blockchain. Perhaps it is one with low transaction fees that saves you money. Perhaps it is a secure one. Perhaps it runs on an environmentally-friendly consensus that you feel good about using. One thing is very likely, which is that it is quite fast.
For years, speed has been a major factor in categorizing ‘good’ blockchains. New projects are endlessly boasting about their transactions per second (TPS) capabilities. Older projects like Ethereum and the like are constantly undertaking upgrades to make them more scalable. It is clear that the blockchain sector is obsessed with speed, but what is that?
In this article, we’ll break down the ways that the blockchain sector benefits from fast transaction speeds on various networks:
Faster Withdrawals
From a platform like a Solana Casino to even wallets, there are many places where a crypto user might opt to deposit their funds for various reasons. And at certain times, they will need to get their money out. How inconvenient would it be to wait hours or days for your funds to arrive, never being fully at ease until they do?
This is why blockchains need to be fast, as it means that their assets can be withdrawn faster. Take a look at Kane Pepi’s list of crypto casinos with the fastest withdrawals here, you’ll see that many accept tokens that are known for their fast transaction times.
Faster Transfers
One of the reasons why crypto is used is for peer-to-peer transfers, especially cross-border ones. For years, consumers struggled with traditional options like SWIFT which could often take days to settle and crypto offered an alternative. In fact, tokens like XRP have made cross-border transactions their entire business model.
But for this to work, the blockchains behind these tokens needed to be fast as well. Many of them have risen to the occasion and this has become an industry standard. Beyond the current benefit it offers consumers, fast transfers are also crucial for the survival of the industry. If crypto will be used as a currency, being able to send them quickly across borders is a must.
Faster Purchases
Still in line with cryptos being used for domestic purposes, many merchants these days accept crypto for their goods and services. This includes local enterprises and multinationals like Burger King and Microsoft. For crypto to be continuously used for this purpose, some level of speed has to be secured.
Because when you pay for something with crypto, you essentially transfer your tokens into the merchant’s wallet. And merchants will be less interested in accepting crypto if it takes much longer for them to arrive compared to traditional currency. This is why certain cryptos have been more widely accepted than others so far.
And moving into the future, the desire for fast transactions will be even more apparent as more merchants take on crypto.
More Efficient Applications
Blockchain is more than just the foundation for crypto but for many applications. From the DeFi space to GameFi to NFTs, the number of platforms, applications and projects that have been built on blockchain is almost too many to count. On these applications, users transfer assets, interact with one another, play games, store data and much more.
Just like with crypto use, these applications need a fast and strong blockchain foundation to function properly. Doing so means that not only do their users benefit in the short term but they can also go toe-to-toe with more traditional applications in the same industries. m
Greater Adoption
The end result of all these cryptos and other blockchain-based products being as fast and efficient as possible is greater adoption of blockchain as a whole. Even with all the success blockchain has seen, it is still a novel technology looking to gain acceptance in the wider world.
By showing that it is as fast or even faster than traditional assets and systems, it is more likely to see acceptance from institutions and individuals alike. A consumer might be reluctant to use a crypto instead of fiat but if the crypto has proven to be faster, there is a better chance.
Increased Customer Satisfaction
Consumers, on average, don’t like having to wait for things, especially when it comes to money. This simple fact means that fast blockchain-based transactions will lead to greater user satisfaction across the board. Whether this is from sending money to others, making a crypto trade, or anything else, getting your needs met fast simply leads to happier customers.
In turn, this means that they will more likely be loyal to the platforms, tools, and businesses that provide them with this convenience. And anything that leads to more loyalty and positive attitudes towards blockchain is only a net positive.
Conclusion
The blockchain and crypto sector has been fighting for acceptance for years now and even with the progress it has made, certain factors have kept it afloat. One of these is the speed of various blockchains that continuously try to outdo each other when it comes to which is the fastest. But this speed race benefits all aspects of blockchain use, from crypto transfers to application development.
By maintaining speed, blockchain-based products can give customers the best experience possible, compete with non-blockchain-based products, and secure a place for the technology well into the future.
