The speeding up of transactions will allow more transactions to be processed in a smaller time frame. It will also add more convenience to the overall exchange and crypto traders will no longer have to waste long periods of time waiting for their transactions to go through.
One of the world’s top cryptocurrency exchanges, Binance, has announced that they have reduced the number of steps that are needed to confirm a transaction on the exchange. The reduction of steps applies to transactions that are done both to and from the exchange and this will increase the speed at which transactions are completed on the exchange. The faster processing of deposits and withdrawals will make the services offered by Binance stronger and much more appealing to crypto traders and investors.
The reduction in steps to confirm transactions will apply to two of its most popular disgusting assets for now and it is expected that the exchange will speed up transactions for other digital assets in the future. The reduction of steps applied to a transaction will apply to Bitcoin and Ether. Bitcoin transactions will now only require one block for confirmation, down from the previous two blocks that were required for the leading cryptocurrencies. This effectively halves the time needed for a transaction in Bitcoin to be confirmed. Bitcoin trading will become smoother on the exchange and it might encourage more traders to buy Bitcoin (BTC).
Ether transactions have also seen a major reduction in the number of blocks needed to complete a transaction. All ERC 20 tokens which have been distributed on the Ethereum blockchain will now require 12 block confirmations for the transaction to be completed. Prior to the changes announced by Binance, Ether needed 30 block confirmations for a transaction. Traders who buy Ethereum (ETH) can expect to experience a new level of convenience when they trade in the cryptocurrency on Binance.
A block confirmation occurs when a block of transactions is added to the blockchain of a particular crypto. The time it takes for a block to be added varies from crypto to crypto because of the differences between each blockchain’s rules and difficulty adjustments. For example, a block on Bitcoin takes about 10 minutes to be added while a block on Ethereum takes around 15 seconds.
The speed at which a block is added is also dependent on the traffic on the blockchain at the time the block is being added. If the blockchain is not being used much, transactions will be added to a block much quicker than they would when the blockchain is being used by a lot of individuals. The choices made by miners will also affect the speed of transactions. Miners are likely to pick transactions that will make them the most money. If there are a lot of pending transactions on a blockchain, the transactions with less benefits for miners will take longer to be processed.