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The latest from Vitalik Buterin to reduce fees on Ethereum

The programmer and co-founder of the Ethereum (ETH) network, Vitalik Buterin, proposed, together with the developer Martin Swende, the EIP-3298 improvement, which would serve to reduce commissions on the smart contract platform. Both suggest eliminating “gas rebates” in the “SSTORE” and “SELFDESTRUCT” functions.

The former allows operators to accumulate “cheap” gas within a contract, while the latter serves to destroy the contract. In doing so, users use stored gas to cover the cost of a transaction when commission prices are high .

red eth transacciones sistema
The increase in transactions on the Ethereum network pushed the price of commissions to new levels. Source: stevanovicigor / elements.envato.com

This type of arbitrage is used by operators through tokens such as Chi Gastoken (CHI) and Gas Token (GST ) that follow the price of gas. That is, users can tokenize gas on the Ethereum network, although in both cases the crypto assets mentioned could disappear if the improvement proposal is approved.

Gas is nothing more than the cost it has a transaction on the network, but in this case it is symbolized as a kind of «fuel». The more complex a transaction is, the more gas it requires. Services such as Gas Tracker provide a reference to the status of the commissions that operators must pay to mobilize funds.

«Refunds give rise to GasToken. The GasToken has benefits in moving the gas space from low commission periods to high commission periods, but it also has disadvantages for the network, particularly by exacerbating the size of states and inefficiently obstructing the use of gas from the blockchain. , Buterin and Swende explain in the proposal.

By saying Ethereum status, the programmers refer to the collection of information about smart contracts and addresses stored in the nodes . Remember that the fee model is designed to ensure that miners are paid equally for any increase in network status.

Fees on Ethereum and possible activation of the EIP-3298

Regarding the proposal, the investor of the company ParaFi Capital, Nick Chong, believed that the publication would have affected the recent decline in gas prices. Gas is measured in gwei (1 gwei=0.000000001 ETH). Furthermore, tokens of this type would have contributed to the “bloat” of the network.

“Some argue that the existence of gas tokens has contributed to considerable bloat of the state, since they inject ‘no-nonsense’ contracts into Ethereum nodes when gas is deemed cheap. As the swelling of the state increases, the commissions can increase, “said Chong on his Twitter account.

In case the EIP-3298 is approved by the community, it will be included in the next update of the network, called London, to be carried out in the middle of the year. From the above, it can be deduced that tokens of this type would disappear.

The increase in commissions occurs when the number of transactions in decentralized networks increases significantly . As Ethereum has a capacity of about 30 operations per second, the cost of commissions for miners to attend to the thousands of operations rises “to the highest bidder.”

The situation limits the scalability of the project already that the cost of the commissions exceeds the actual amount of the transactions. That is, a person who wants to send $ 20 in ethers, could end up paying $ 50 in fees, for example.

In January of this year, CriptoNoticias reported that the increase in the price of the cryptocurrency of Ethereum was skyrocketing network fees. It should also be mentioned that another proposal, EIP-1559, is under evaluation to reduce rates. In this case, users would pay a fixed rate that would later be burned. In this case the miners would receive a “tip” from the operators.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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