Speed of Crypto Transactions – Why it is Important, and Industries Needing Speedy Payments

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Cryptocurrencies have revolutionized the way that money matters are dealt with, and grown to the point where tens of millions of people are using these currencies. When Bitcoin and fledgling cryptocurrencies were launched there were nowhere near as many places where they could be used, but in the modern age, there are many options.

Speed is one of the top reasons for the growth, as people value having the fastest way to move funds around, and companies also want the most quick and convenient method. How come crypto tends to be so much faster and what are some of the use cases for these speedy transactions?

The Casino Industry Embraces Speedy Transactions

Casinos and the wider gambling industry are some of the first that have embraced the full convenience and speed of cryptocurrencies.

When people want to play a casino game they may need to make a deposit first and the speed with which they do this impacts how quickly they can play the game. When a consumer decides to play at an online casino with crypto they can be confident that the transactions will be very fast and they can get on with the gaming.

Some estimates say that the majority of cryptocurrency transactions now involve gambling in some way, with a lot of casinos launching with crypto as the main transaction method. Crypto games in casinos may even have a different set of mechanics and a new way to play, with unique crypto games not found at other casinos.

Speed is one of many reasons why crypto makes sense with casinos, and the growth in these businesses has been impressive, people are also looking at the other benefits of using crypto. Cutting out the middle man leads to both speed and fewer things that can potentially go wrong. Additionally, many people value the fact that they can play with more anonymity, as using a bank card or similar method means that people rely on a bank to approve the transaction, which requires more information to verify the transaction. They are not restricted in the same way that traditional transactions are in terms of checks and verification.

Casinos have led the way in terms of cryptocurrencies and using them for transactions, but this has also spread to the wider gaming industry.

What Makes Transactions Quicker?

Speed is obviously a unique selling point for the cryptocurrency industry, so what is driving this speed?

Decentralized payment methods and the way that the funds and transactions are processed from a crypto wallet make all the difference.

The speed of traditional transactions for flat currencies is held up by intermediates, with these types of transactions involving a lot of different parties performing their own checks. Credit cards especially have even more checks due to the way they are approved. Security is important, but decentralized methods mean that the security doesn’t take so long.

Crypto networks are distributed among different nodes on this blockchain which means that they are completed between parties and don’t need these same permissions to ensure security.

Blockchain uses nodes to independently approve and agree on the validity of a transaction. Nodes on the blockchain need to be validated in the correct order which helps to allow the transaction to go through, using something called a consensus mechanism. Consensus mechanisms include Proof-of-Work (PoW) and Proof-of-Stake (PoS). PoS is known as being the quickest of these methods.

Other Industries Valuing Speed

All industries need some sort of speed, and nobody wants to wait for transactions to go through and be verified. Instead of this, it is better if people get the money they are owed quickly, but there are some industries in which it is even more essential.

Investing and financial markets are among the industries where speed is absolutely essential. If people want to make an investment and get the most up-to-date price then they need to be able to move quickly. Financial markets move fast, and this is one of the reasons why so many people are looking for faster ways to move money, and the industry is valuing lightning-fast transactions to avoid any issues or disagreements.

All digital transactions should be fast these days, even if they require a level of verification, there is no real reason why they shouldn’t be relatively quick, but cryptocurrencies are leading the way in terms of speed and this is helping crypto to grow and become even more mainstream.

Conclusion

We see with the gaming industry among others that there is a huge demand for speedy transactions, as well as all the other benefits crypto and decentralized finance bring. Blockchain technology has already changed the way money is moved around and it seems like this trend will continue in years to come, especially within industries where time is always of the essence.