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Increasing and falling gas taxes in cryptocurrency: a critical evaluation
The decentralized nature of cryptocurrencies such as Ethereum has revolutionized how we think of transactions, payment systems and user experience. An aspect that is often overlooked is the impact of gas taxes on these transactions. In this article, we will deepen in the world of cryptocurrency economy, we will explore how gas taxes affect ETHREUM transactions and users and examine what is done to mitigate its effects.
What are gas taxes?
The gas taxes, also known as transaction taxes, are a small amount charged by the blockchain network (for example, Ethereum) for processing individual transactions. These taxes allow miners to validate and verify transactions on blockchain, ensuring the integrity of the network. The amount of gas required to perform a transaction is usually determined by the complexity of the operation, such as sending, receiving or broadcasting data.
Evaluation of gas taxes to Ethereum transactions
To understand the impact of gas taxes on Ethereum transactions, let’s take a look at numbers:
- The average gas price on Ethereum: around $ 15 -20 on the block (a block is equivalent to a “gas transaction”)
- Average transaction size: around 25-30 bytes
- Estimated time for execution: 10-100 seconds
As you can see, these values are quite high. This means that users and developers should carefully consider the costs of executing transactions on Ethereum before deciding whether to do so.
The problem with high gas charges
Large gas taxes have several negative consequences:
- Starting with the miners : By charging high taxes for transactions, the miners receive a significant stimulant for validating transactions quickly and efficiently, which can lead to slower transaction times.
- Reducing user experience : As the transaction time grows, users can become frustrated by the slow pace of their transactions. This can lead to a decrease in adoption, as users are looking for alternative payment systems that offer faster processing times.
- DISTRIBUTION OF DESCECTRIZED APPLICATIONS (DAPPS) : Large gas taxes associated with Ethereum transactions make it difficult to work without problems. This can disturb the whole ecosystem, causing users and developers to lose confidence in the network.
Attacking gas taxes
Several solutions are explored to address the problem of high gas taxes on Ethereum:
- Reducing the time of the block : Decreasing the number of blocks processed per second (blocktime) can help reduce transaction times without sacrificing too much computing power.
- Sharding implementation
: Sharding is a technique that allows more nodes to process transactions simultaneously, reducing general processing time and minimizing congestion on the network.
- Increasing scalability : Improving the scalability of the Ethereum network through techniques such as the chain transactions, improved gas basins or even a lateral pile can help reduce transaction times without sacrificing performance.
Future of gas taxes
As the cryptocurrency space continues to evolve, we can expect to see that more innovative solutions appear to address the challenges presented by high gas taxes. Some potential developments include:
- Layer scaling solutions 2 : New technologies such as Polygon (former Matic network), Solana and Binance Smart Chain work to improve scalability without sacrificing performance.
- Centralized payment systems (CPS) : Platforms like Coinbase Custody and Ledger Live offer more efficient storage and transfer ways, reducing the need for high gas taxes.
- Descentralized applications (DAPP) with built-in scaling mechanisms : Some DApps incorporate pre-built scaling solutions or use alternative technologies to reduce transaction times.