Why are Ethereum transaction fees so high?

News and Media
#1

Ethereum transaction fees increase when the network is busier. This is caused by more people making transactions like sending tokens, trading on DEXes or depositing their assets to lending platforms.

I totally get it. But why users have to suffer for this? What should Ethereum do to adapt to bigger network of users but still be affordable by the majority of us who are trying to save with this pandemic potentially causing an economic collapse?

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How is Intercoin going to help users when the network gets busier?

I would love to hear everyone’s thoughts on this topic

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#2

Ethereum is planning to roll out ETH 2.0 to solve this. With Intercoin because we forego global consensus, we don’t have this same problem because the transactions are not all processed on the same ledger.

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#3

Also as an aside, ERC-20 (ethereum tokens) are all unusable for small transactions currently because of these fees. Often times the fees exceed the transaction value itself!

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#4

Thanks for your input.

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#5

So people don’t usually make small transactions?

#6

@ELENA_RIVERS @Gregory_Magarshak1 what are your thoughts?

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#7

In reality, as it’s a simple structure similar to an auction or simple supply and demand considered as factors regulating its price.
Ethereum uses the “first-price auction” system to price gas. The platform works with every sender’s bid (gas limit) for how much they will pay. Miners can choose desirable transaction and include it in the next block. In theory, the higher you pay the quicker you can send but they are saving ETH through refunds.

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#8

Totally agree with you @Norman! And this is ONE OF MANY advantages of a great Intercoin structure!

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#9

I mean on ethereum right now it makes no sense to do a 5$ transaction when the fees are 5$

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#10

Exactly. So daily transactions are a no no. It defets the entire purpose of not using $ and transitioning to any cryptocurrency in the future

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#11

Does Intercoin solve the issue of high transaction fees by focusing transactions on a local level ?

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#12

i am tagging few of our members to provide some insight and engage @Norman @Gregory_Magarshak1 @ELENA_RIVERS

#13

Is Intercoin the only platform that can solve this issue and allows stakeholders do transactions of Ethereum with reasonable fee depending on their local standard?

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#14

Not totally @Kelsia. Although @Gregory_Magarshak1 is tirelessly working on it with developers as well as thousands of other companies all over the world, I always like to remind this story about Edison’s 1,000 unsuccessful attempts at inventing the light bulb.
One day a reporter asked him:
“How did it feel to fail 1,000 times?”
And Edison replied:
“I didn’t fail 1,000 times. The light bulb was an invention with 1,000 steps.”

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#15

great quote and you make a good point.

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#16

Its the only one I’ve seen that solves the problem of high fees in this particular way.

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#17

Actually I can say the same as @Norman despite that I’ve seen many other interesting projects on Ethereum.

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#19

Thank you @Rob for your input. That is good to know.
Welcome to our community! We would love to get to know a little about you, so we always encourage new members to go to our Introduction post and introduce themselves. Looking forward to networking! https://community.intercoin.org/t/introduce-yourself/216/47