While we’ll all admit the importance of Gas Fee to blockchain technology, the popularity of blockchain technology is gradually taking over the world, and Every industry has in one way or another felt the innovative presence of this game-changer. One fact we all can’t deny or shy from is the dynamism the technology brings to the status quo.
Without a doubt, it’s innovative with a vast range of utility and effectiveness which has massively contributed to this popularity. In every industry that has experienced the presence of this game, the story has never been the same. While this blockchain technology is gradually taking over, a most sector that has felt its presence are exploring it for the best. Meanwhile, those that are yet to fully tap into it are looking for every possible way to embrace it.
Despite the enticing nature of the technology, the desire to adopt it, and its rapidly growing popularity there’s a major factor holding it back. Understandably, this factor is a necessary evil for the maintenance and sustainability of the Blockchain. We all know it’s important, but the dangers are not ignorable.
Further, The Blockchain Network transaction charges otherwise known as Gas fees are popular with the technology. It runs on the stipulation of the evergreen demand and supply theory. In regards to blockchains that use the proof-of-work concept, Traders pay more base on the weight of the transaction.
Basically, it implies that the higher the demand, the higher traders pay to complete their transactions. Voluminous transactions with hefty returns often draw the awareness of miners who work to validate and process these transactions.
How Developers are working to extinct Gas fee as soon as possible
Additionally, everyone is aware of the dangers extreme gas fees can inflict on the popularity of global blockchain adoption. For instance, the idea of paying a robust fee to convince miners to attend to a transaction can turn into a bidding war. The highest bidder will surely get the attention, this system can as well deny other traders from using the technology.
Therefore, this has prompted developers to go back to their drawing table and proffer solution to it. The solution that will effectively slash these gas fees, allow more utility for blockchain and boost its popularity. One of the proffered way-out by developers is the Ethereum improvement Proposal (EIP1559).
The EIP1559 Is designed to effectively put a stop to the imminent bidding war. It comes with a random fee that’s on pair to the level of traffic on the blockchain. The base fee in this system is predetermined though Traders, who can still add little commission to it. Nonetheless, it still fulfills the ideology of erasing the hefty gas fees. The good part about the EIP1559 is that it allows Traders to set what they can pay as gas fees and leaves miners to ignore or accept.
Unfortunately, it didn’t rule out the heavy charges as traders still pay heavily for verification of their transactions. The instability of gas fees on Ethereum is a problem when trading with urgency on decentralized exchanges or participating in NFT mints during zenith periods of user demand.
One notable example is the recent Other deed NFT mint by the Bored Ape Yacht Club (BAYC) project. The minting disrupted Ethereum by causing network congestion for at about three hours, with some BAYC community members paying up to $7,000 in gas fees.
Is it militating against the global adoption of the blockchain?
Just like how we can’t deny the existence of gas fees regarding blockchain technology. We can’t deny the negative impact as well, but we must come to admit that it’s minimal. Yet obvious, but the effect of these gas fees is not cogent enough to spark an exodus against this growth.
To a reasonable extent, the EIP1559 offers a good option for traders to fix their desired amount for gas fees. Traders will then wait for the approval of the transaction. Traders who still add tips are relatively impatient and they represent a smaller part of the cryptocurrency sphere. Definitely, a larger percentage of those who transact on the blockchain will prefer to wait. Lastly, the moving train doesn’t look like one that’ll stop, even hefty gas fees can’t stop it.