Increasing and dropping of gas rates into cryptocurrency currency: Critical assessment
The decentralized nature of the crypto currency like Ethereum has revolutionized the way we are considering transactions, pay systems and user experience. One aspect that is often neglected is the influence of gas rates on these transactions. In this article we will deepen the world of cryptocurrency economy, we will investigate how gas rates affect the transactions and users of Ethereum and we will examine what is being done to alleviate its effects.
What are gas rates?
Gas rates, also known as transactions rates, are a small amount charged by a blockchain network (for example, Ethereum) for processing individual transactions. These rates allow miners to confirm and check the transactions in the block chain, ensuring the integrity of the network. The amount of gas required to execute the transaction is generally determined by the complexity of the surgery, such as delivery, admission or transmission data.
Evaluate gas rates in Ethereum transactions
To understand the influence of gas rates on the Ethereum transactions, let’s look at some numbers:
- Average gas price in Ethereum: about $ 15 to $ 20 per block (block is equivalent to “gas transaction”)
- Average transaction size: about 25-30 bytes
- Estimated time to execute: 10-100 seconds
As you can see, these values are quite high. This means that users and developers should carefully consider the cost of executing transactions in Ethereum before deciding whether you will do it.
Problem with high gas rates
High gas rates have several negative consequences:
- The incentive of the miners : When collecting high rates for transactions, miners receive a significant incentive for rapid and effective confirmation of transactions, which can lead to a slower transaction time.
- Customer experience reduction : As transaction time increases, users can be frustrated with a slow rhythm of their transactions. This can lead to a decrease in adoption, as users are looking for alternative canvas systems that offer faster processing time.
- Discontinuation of decentralized applications (DAPPS) : high gas rates associated with Ethereum transactions make DAPP make it to work without a problem. This can change the entire ecosystem, which is why users and developers lose confidence in the network.
gas speed mitigation
Several solutions are being investigated to solve the issue of high gas rates in Ethereum:
- Block time : Reduction of the number of blocks of processed in seconds (block -time) can help reduce the transaction time without sacrificing too much computer power.
- The implementation of fragments : is a fragment of a technique that allows more knots to process transactions at the same time, reducing the general processing time and minimizing the congestion in the network.
- Increased scalability : Improving the scalabiness of the Ethereum network techniques such as the transactions outside the chain, improved gas group or even a side chain can help reduce the transaction time without sacrificing performance.
Future of gas prices
As the space for cryptocurrencies is still developing, we can expect to see that more innovative solutions to resolve the challenges collected by high gas rates appear. Some potential development includes:
- Layer 2 Solutions of the Scale: New Technologies such as Polygon (earlier Matic Network), Solana and Binance Smart Chain work to improve scalability without sacrificing performance.
- Centralized payment systems (CPS) : platforms such as Coinbase and Ledger Live offered more effective ways of storage and transfer of property, reducing the need for high gas rates.
- Decentralized applications (DAPPS) with integrated scale mechanisms : Some DAPP installed previously constructed scale solutions or use alternative technologies to reduce transaction time.