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Transaction delay metric calculations

CoinExams
Transaction delay metric calculations
By CoinExams • Issue #1 • View online
A detailed issue regarding transaction speed (delay) metric in our utility list, featuring Nano. We got various requests to clarify how the transaction delay (speed) metric is calculated, especially from the Nano community. So here we explain how it is calculated and how you can help.

A hairy topic
Transaction speed is a very important metric, yet it is a very hairy topic in crypto because of the following:
  1. Some older coins claim a layer-2 solution should be considered despite those solutions having trust and implementation issues, e.g. the Lightning network of Bitcoin.
  2. some crypto coins claim to have finality after only one (1) block confirmation. However, independent parties claim more confirmations are needed to actually accept those transactions.
Solutions
Our solution to the 1st argument is to only consider layer-1, AKA the actual blockchain. Since even with a fully functioning layer-2 solution users will eventually need to take custody on layer-1 wallets to actually own their coins.
Our solution to the 2nd argument is to reference Binance exchange deposit full confirmation requirements. Since Binance is the largest crypto exchange and they have a huge incentive to make sure deposits are actually confirmed.
The Process
The process of calculating the transaction delay/speed metric is as follows:
  1. We look up various explorers of a given coin and try to find out the most accurate representation of its average block time. That is the time required by the coin network to create a single block.
  2. We check the number of confirmations (Blocks) required by Binance to fully accept the transactions. That is how many confirmations for the user who deposited a given crypto coin to be able to confirm ownership and have the option to withdraw those deposited funds.
  3. We multiply the average block time by the number of confirmations required.
So the simple equation for calc transaction delay is:
Transaction Delay (Speed) =
Avg. Block Time × No. of Confirmations
An example
This is an example of the process for Nano, currently one of the best crypto in terms of utility, according to CoinExams.com
We found that Nanoticker.com is the most comprehensive representation of Nano network metrics. So we use their average block time which is now around 1.2 seconds.
We then check the number of confirmations required by Binance for a Nano deposit to be fully confirmed. In this case, it turns out to be only one (1) confirmation.
So according to the time delay equation:
Transaction delay/speed for Nano would be 1.2 × 1 = 1.2 seconds
You can help
We hope this issue clarifies the transaction delay metric.
You can help us by sharing this and subscribe to our newsletter if you have not yet. More importantly, share your feedback with us about other metrics. Your feedback helps us improve and change for the better.
Also, if any of your favourite coin’s data is misrepresented on CoinExams.com, please let us know. We might have overlooked something and your knowledge help us improve data accuracy for the betterment of the crypto community.
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