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Why is the Ethereum service charge low (why is the Ethereum service charge so expensive)

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Why Ethereum charges are low

Why Ethereum charges are low When trading on Ethereum, you usually need to pay a certain fee. However, when users want to send Bitcoin to Ethereum, the service charge is high. If the same transfer amount or different token addresses are used, different proportions of high handling fees will be incurred

Why is the Ethereum service charge low? The reason is simple: because there is no smart contract in the Ethernet network that can support any ERC-20 token, the longer the time spent on the Ethernet block, the higher its value; On the other hand, every transaction on the Ethereum blockchain must pay a fixed amount of ETH (currently 0.0002 BTCs), and this type of transaction is irreversible

From the perspective of technical analysis, this means that the transaction cost of Ethereum is not higher than that of ordinary Bitcoin. Because miners earn more income by calculating this data, they are unable to make predictions about blockspace demand and decide whether to package a new block

Why is the Ethereum service charge lower than Bitcoin? Because the gas required to run a node and perform an operation on the Ethereum network. Although miners have already consumed a lot of energy and are unwilling to make it a separate transaction. But this did not prevent people from using this platform to transfer their Bitcoin. Therefore, we should consider basic issues such as how to reduce Ethernet congestion and when the network can reach the lowest gas price. (Etherscan)

Why is Ethereum so expensive

With the rising price of Bitcoin, the transaction fees of Ethereum network are becoming more and more expensive. In the past few years, “ETH transfer fees” have always been one of the most concerned issues for users

Although Ethereum still has some security risks at present, the price of Ethereum remains stable due to its decentralized features and smart contract functions, but without these advantages, it is difficult for ordinary people to enjoy the “boring Ethereum”. Why are the handling fees so high? Today, let’s talk about the reasons behind this. 1. The service charge of Ethereum soared

On January 8, 2020, the average gas consumption of Ethereum reached a historical high of 10Gwei. During this period, gas only used 2 bytes, which is about $6- equivalent to processing over 30000 transactions per day, spending a total of over $500 million in ETH; By mid December 2019, the data had risen to over 13GWei. At the end of 2020, this number once again climbed to $1.4 billion

According to the data from DeBank, Ethereum’s activities on the chain are continuing to decline, while the number of active addresses is also growing steadily. 2. Gas cost increases, Ethereum miners’ income surges

According to the statistics of TheBlockResearch, since the first half of this year, the block rewards generated by Ethereum mining have halved from 20 in 2017 to 12.5 ETH, and this proportion has reached 60% at the end of the third quarter of 2019, a record high of 50%. 3. The gas price crash does not match Ethereum’s own development

For many investors, the main reason for the soaring fees is the security of Ethereum’s ecosystem and the phenomenon of high transaction costs. (Image source: DuneAnalytics)

However, the gas consumption rate of Ethereum is far higher than that of other competitors, especially those with fierce competition. Although there are various factors that affect the use demand of Ethereum, for example, the price of gas fluctuates greatly, and the number of transactions on Ethereum will also decrease, this situation is not as common as people think. In addition, Ethereum developers have been discussing how to solve this problem by improving the efficiency of gas use. 4. EIP-1559 has introduced a new gas mechanism to support the EIP-1559 proposal and will implement the EIP-2929 plan, aiming to achieve a new time proven new economic model. It allows users to create multiple blocks and perform any operation within the time frame of each epoch. This includes changes in the height and size of blocks, such as the information input required to validate blocks, and the ability to take snapshots or delay confirmation of transactions. When EIP-2929 was released,

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