Bitcoin ATMs and speed of transactions - which transactions are quick and why

Bitcoin has introduced the world to decentralized digital currency with its groundbreaking blockchain technology. However, the speed of Bitcoin transactions can vary. Understanding the factors that affect this speed is important for Bitcoin ATMs users and investors. So let's start with specifics - by sorting which cryptocurrencies have quick and which have slow transactions at Bitcoin ATMs:

Speed of transactions at Bitcoin ATMs:

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Quick, up to 2 minutes: USDT on trc20, as well as TRX, DASH, ETH on Arbitrum and Optimism
Longer,up to an hour: BTC, ETH, USDT on ERC20, USDC on ERC20

The above breakdown doesn't just apply to transactions on Bitcoin ATMs. After all, it's not Bitcoin ATMs that are causing the delay here - the wait time has to do with the blockchain technology and has deeper technological reasons. For example, USDT on trc20 is fast, but less secure than on ERC20.

Ethereum (ERC20)

• Proof of Work (PoW): Ethereum uses PoW (and is transitioning to Proof of Stake with Ethereum 2.0), which means that miners compete in solving complex mathematical problems to add a new block to the blockchain. This process is resource-intensive and time-consuming, leading to slower transactions. It makes the network more secure, though!
• Longer Block Time: The average block time on Ethereum is about 13-15 seconds, which can lead to longer transaction confirmation times, especially during network congestion.
• High Overload: Ethereum often experiences high network congestion due to its popularity and the wide range of decentralized applications (dApps) running on it. This overload can cause delays and higher gas fees, which slows down transactions.

Tron (TRC20)

• Delegated Proof of Stake (DPoS): Tron uses DPoS, where a smaller number of nodes (called Super Representatives) are selected to validate transactions. This results in faster time to consensus and faster confirmation of blocks. However, the lack of a system like Ethereum's makes it weaker, less secure, and not fully aligned with Satohi's vision for Bitcoin. Who cares if it is fast, if it is kind of like traditional fiat currency with all its downfalls?
• ‍Shorter Block Time: Block time for Tron is about 3 seconds, allowing for much faster transaction confirmations and higher throughput.‍
• Lower Overload: Tron typically experiences less overload compared to Ethereum, leading to faster and cheaper transactions.
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Deeper reasons related to the speed of transactions in Bitcoin ATMs

We have already answered the question of which cryptocurrencies at Bitcoin ATMs are fast and why. For those interested, let's now introduce the topic in more depth:

Quick transactions at Bitcoin ATMs(up to 2 minutes):

1. USDT on TRC20:
   • Tron Network: Uses Delegated Proof of Stake (DPoS), which allows for quick confirmation of transactions, usually within seconds to a minute.
2. TRX:
   • Tron network: Like the USDT on TRC20, TRX uses the same high-speed DPoS infrastructure.
3. DASH:
   • InstantSend: Dash offers an InstantSend feature that allows for instant confirmation of transactions, making transactions very fast.
4. ETH on Arbitrum and Optimism:
   • Layer 2 Solutions: Arbitrum and Optimism are Layer 2 solutions for Ethereum that significantly increase transaction speeds, reducing latency and costs associated with transactions on the Ethereum core network.

Longer Transactions at Bitcoin ATMs (up to an hour):

1. BTC:
   • Bitcoin network: Uses Proof of Work (PoW), which involves longer transaction confirmation times, typically 10 minutes to an hour depending on network congestion.
2. ETH (main network):
   • Proof of Work / Proof of Stake: Although Ethereum is moving to Proof of Stake (Ethereum 2.0), transactions on the main network can still take several minutes to several tens of minutes during congestion.
3. USDT at ERC20:
   • Ethereum network: Like ETH, USDT on ERC20 uses the Ethereum core network, which involves longer transaction confirmation times, especially during congestion.
4. USDC on ERC20:
   • Ethereum network: USDC on ERC20 also uses the Ethereum core network, which means that transaction confirmation times are similar to ETH and USDT on ERC20.

Summary

• Quick trades: USDT on TRC20, TRX, DASH, ETH on Arbitrum and Optimism. These trades usually last from a few seconds to a maximum of a few minutes.
• Longer trades: BTC, ETH, USDT on ERC20, USDC on ERC20. These transactions can take from a few minutes to an hour, depending on network load.

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Key Factors Influencing the Speed of Transactions in the Bitcoin ATMs

Network jam

Network congestion is one of the main factors affecting Bitcoin transaction speeds. When the number of transactions waiting for confirmation increases, the network becomes congested, resulting in longer processing times. Periods of high demand, such as spikes in Bitcoin trading or significant events in the cryptocurrency space, exacerbate this congestion, leading to delays and higher transaction fees.

Challenges of Scalability

Bitcoin's scalability has been a controversial issue since its inception. The network's original design limits its ability to process multiple transactions simultaneously. This limitation becomes apparent during periods of high transaction volume, further slowing transaction speeds. Proposed solutions, such as the Lightning Network, aim to solve these scalability challenges by facilitating faster and cheaper off-chain transactions.

Block Size Restrictions

Block size limitation is another critical factor affecting transaction speed. Currently, Bitcoin blocks have a maximum size of 1 megabyte (MB), which limits the number of transactions that can be included in each block. As demand for Bitcoin transactions grows, this limited block size creates a bottleneck, delaying transaction confirmations. Attempts to increase the block size have encountered considerable debate in the Bitcoin community, reflecting the complexity of reaching consensus on protocol changes.

Network latency

Network latency, which is the time it takes to send data from the sender to the receiver and back, also affects the speed of Bitcoin transactions. Although Bitcoin transactions propagate relatively quickly across the network, latency can introduce delays, especially for transactions that require multiple confirmations for security reasons. Improving network infrastructure and protocols can help reduce latency and improve transaction speeds.

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Comparison of the fee for miners in the Bitcoin ATMs

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Applications

Understanding the factors affecting bitcoin transaction speeds is essential for anyone involved in the cryptocurrency space. Network congestion, scalability challenges, block size limitations and network latency play a significant role in determining how fast transactions are processed. Solving these problems requires a combination of technological innovation, community consensus and infrastructure improvements. As Bitcoin continues to evolve, efforts to improve transaction speeds will remain a key priority for developers and the broad cryptocurrency community.

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