U.S. CBDC test reaches 1.7 million TPS, fastest CBDC transaction so far

The Federal Reserve Bank of Boston, in collaboration with the MIT Digital Currency Initiative, completed a transaction speed experiment for a USD CBDC with a record system throughput of 1.7 million per second.

So far, Solana, the public chain with the highest TPS, has a throughput of 50,000, Algorand has 1,000 transactions per second, Etalum has 34 transactions per second, and Bitcoin has about 7 to 10 transactions per second.

The digital dollar project, code-named "Project Hamilton," will be set up to withstand downtime due to server failures and aims to address regulatory and technical hurdles in the early but fast-growing global CBDC industry.

A CBDC is a digital currency pegged to fiat currency and regulated by a central authority.

As the U.S. dollar digitizes, the Fed wants to "design a core transaction processor that meets the high standards of speed, throughput, and fault tolerance required by large retail payment systems" and "create a flexible platform for collaboration, data collection, and , comparisons with multiple architectures and contribute to other future research".

As a reserve currency and a currency with exchange value, CBDC will serve more than 20% of the global population. Based on this, the United States has opted for a cautious approach to development, using open source technologies to increase cooperation and transparency to avoid costly mistakes.

Centralized Crypto has a comparative advantage over decentralized Crypto because it is protected by a central server and requires fewer independent blocks to be verified before confirmation. PoW and PoS proofs are the most common verification methods for decentralized Crypto currently.

While nine countries including Nigeria and the Bahamas have launched CBDC projects and 14 countries including Sweden, Saudi Arabia, Singapore and South Africa are in the pilot phase, the race for global CBDC dominance looks set to be between the US and China expanded.

The renminbi CBDC is currently in the experimental phase, and in the past six months, transactions worth $8.3 billion have been completed, with more than 120 million logged-in users, or about 12 percent of the population. The United States, as an important Crypto development country in the world, has important global influence in the development of its CBDC and the standardization of Crypto.

The healthy competition between China and the United States in CBDC has further promoted the development process of CBDC, which is of positive significance.