Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
This level of transaction fees would be “truly acceptable,” Buterin said. The goal isn’t that far off, and a new EIP to increase scalability could help Ethereum lower its costs.
The creator of Ethereum a decentralized open-source blockchain with smart contracts functionality. Vitalik Buterin has shared what he believes should be the minimum level a user should pay to transact on the blockchain using a Layer 2 solution.
“ For it to be truly acceptable, it has to be below $0.05. “ wrote the co-founder in a tweet Tuesday. The comment came in response to a post by the host of the podcast “ Bankless “, Ryan Sean Adams, who shared a screenshot showing the average rates for eight Layer 2 platforms from Ethereum .
“ This is Ethereum and it’s not expensive “, dijo Adams en su tweet possibly in reference to the various criticisms about the high transaction costs of such a network. Buterin, however, did not seem to agree, believing that the costs should be even lower.
Needs to get under $0.05 to be truly acceptable imo. But we’re definitely making great progress, and even proto-danksharding may be enough to get us there for a while!
— vitalik.eth (@VitalikButerin) May 3, 2022
As can be seen in the image, only one of the second layer protocols meets Buterin’s minimum requirement: Metis Network a network refers to all nodes in the operation of a blockchain at any given moment in time. with an average fee of $0.02. The rest of the scalability solutions, while offering relatively low fees, have fees in excess of a penny on the dollar and up to $1.98 per transaction in Aztec Network .
The data shared comes fromL2fees.infoa website that compares the cost of the Layer 1 network from Ethereum with those of layer 2 solutions, as pointed out by Cointelegraph .
Sobre las altas tarifas de comisión de Ethereum
For some time now, Ethereum the leading smart contract in traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. platform, has seen high trading fees. Especially since the rapid growth of decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. applications (DApps) based on Ethereum and the subsequent popularity of the decentralized finance space (DeFi); and now the more recent craze for the tokens no fungibles (NFT).
The explosion of these developments has led to a greater number of users going online. Ethereum causing network congestion. In response, developers have been trying to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the problem of high rates through so-called Layer 2 solutions, which help applications scale by processing transactions outside of the core network. Ethereum .
This type of solution has gained traction as the ecosystem of Ethereum continues to grow. One of the main side chains ( sidechains ) of Layer 2 of Ethereum es Polygon . There are also other types of scaling solutions, such as the rollups .
A recent event called attention to the high rates of Ethereum . Over the weekend, the average trading cost soared over $200 USD amid the launch of the NFTs”.Otherdeed“, de los creadores de Bored Ape, Yuga Labs. The sale of virtual land, which has generated revenues of over 700 million dollars , vio a algunos usuarios pagar gas a term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is the “fuel” of the Ethereum network. *see Gas Limit and Gas Price. rates of USD $14,000 according to Cointelegraph . Other reports suggest that the event cost buyers more than $180 million in total fees.
While costs have stabilized since then, with an average transaction on the main network of Ethereum in about 0,0046 ETH (USD $13.2) at the time of editing, the event highlights the continuity of this drawback.
Buterin’s goal may not be so far away
Although the prices of Layer 2 tariffs are not yet at a “ acceptable “For Buterin, the co-founder remains optimistic about technological advances towards this goal. “ But we’re certainly making great progress, and even proto-danksharding may be enough to get us there for a while! “ he added in his tweet recent.
The concept ” proto-danksharding “refers to a proposed improvement for Ethereum recently presented ( EIP-4844 ), which is designed to help scale the network in the short term, as he explains Decrypt . The update allows for a new type of transaction called ” blob-carrying transaction “which carries additional data inaccessible to the virtual machine from Ethereum (EVM).
The general idea is that this will help the scale of the grid significantly in the short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. term while reducing congestion and competition for gas usage, thereby reducing gas tariffs. Buterin had highlighted about this proposal in a blog post last month, which was cited by Cointelegraph :
Because validators and clients still have to download the full blob content, the data bandwidth the quantity of data capacity available for transactional activity on a network is known as bandwidth. in proto-danksharding is allocated at 1 MB per slot instead of the full 16 MB. However, there are big scalability gains gains refer to an increase in value or profit. because this data does not compete with Ethereum’s existing transaction gas usage.
This is not the first time the founder has talked about affordable fee levels for an operation on the Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. . As both media recall, in 2017 he said that “. the Internet of Money should cost no more than 5 cents per transaction “. Buterin reiterated in a tweet published earlier this year that this is still “ 100% “the goal for Ethereum .
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Article by Hannah Estefania Perez / DiarioBitcoin
Illustration byNicoleLeon.Design, para DiarioBitcoin