The fees of Ethereum have soared across the board, and users are miserable. How can it be broken?
Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: CATHERINE CHEN, reprinted with authorization by Odaily.
Editor's Note: This article comes from
Cointelegraph Chinese (ID: CointelegraphChina)
, Author: CATHERINE CHEN, reprinted with authorization by Odaily.
As of the time of publication, the average Gas price on Ethereum has soared to 260 Gwei, and the average transaction fee for each transfer is $16, which can be said to be prohibitive. Then, on the focus of Ethereum handling fees, what is the actual situation, what are the solutions in the market, and what adjustments may be made to ETH 2.0 in the future, let’s sort them out one by one to find a solution.
Growing Network Costs
In order to have an intuitive understanding of the changes in Ethereum transfer fees, in the figure below we calculated the current average Gas price (Gwei/ 10^(-9)Ether) and the average fee per transfer ( $), the time range is from October 9, 2017 to January 4, 2020. It can be seen that Gas whose monthly average price exceeds 50 Gwei concentrated in two periods: the beginning of 2018 and the entire second half of 2020 to the present. If the previous peak was due to the big bull market and the popularity of cryptokitties, the current peak is mainly due to the enthusiasm for Ethereum DeFi and the growth of stablecoins.
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According to the data of ethgasstation.info, in the past 30 days, among the top 10 gas consumption addresses, there are 7 DeFi projects, 2 stablecoin projects and 1 scam address. Among them, Uniswap (V2) ranks first with a fee of 34.4k ETH, which is equivalent to 23.2 million US dollars in legal currency.
While the popularity of the network has increased in an all-round way, the network utility of Ethereum has almost reached the ceiling. The figure below shows the Gas Utilization and Gas Limit changes in Ethereum history. It can be seen that the utilization rate of Gas has been increasing year by year and has reached 98%, which is close to the upper limit of 100%. In fact, in mid-June last year, the Gas Limit was increased by 25% after a round of community proposals was passed, but the latest utilization data shows that it is imminent to optimize the network fee structure.
Ethereum Gas Utilization Rate and Gas Limit Trend
Source: Etherscan Drawing: Cointelegraph Chinese
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Ethereum fee income trend
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Source: Etherscan Drawing: Cointelegraph Chinese
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In the face of soaring gas fees and increasing network processing requirements, the demand for a handling fee solution is also amplifying at this stage. For many small users participating in DeFi Yield Farming, this demand is particularly important, and operating costs often occupy a large part of the income.
According to the information compiled by the research institution Longhash, there are currently two common types of Gas solutions in the blockchain development community: contract derivatives and smart contracts written using the Gas pricing mechanism for deductions and refunds.
In terms of hedging Ethereum Gas fees, the types and scale of existing products are still relatively limited. Since the launch time is not long, the hedging effect is still to be tested in practice. But it is foreseeable that such tools will have a real market demand before the real realization of ETH 2.0.proposalsecondary title
ETH 2.0 EIP-1559 proposal is coming soon
There are also many discussions in the Ethereum developer community about the Gas optimization mechanism. Among them, EIP-1559 proposed by Eric Conner, the core developer of Ethereum and the founder of Ethhub, has received the most attention.
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, the proposal is considered to have the potential to solve the problem of excessive gas fees, improve user experience and optimize the monetary policy of ETH. The proposal has not yet been officially implemented, but Eirc Conner recently stated that EIP-1559 will be implemented on ETH 2.0 soon.
1) Increase the block Gas Limit from 8 million to 16 million (currently about 12.5 million)
3) Users can tip miners by themselves
The annual inflation rate of ETH 2.0 changes with the amount of ETH pledged
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