The post Zero-Fee Transactions Are Boosting Blockchain’s Appeal appeared on BitcoinEthereumNews.com.

During times of heavy network congestion, blockchain transaction fees can go through the roof. Prior to its shift from Proof-of-Work to Proof-of-Stake, gas fees on the Ethereum network would often hit insanely high levels, with users having to pay hundreds of dollars to have their transactions processed in a reasonable amount of time.  The Bitcoin blockchain has suffered from similar issues in the past, with fees recently hitting over $300 at the height of the Ordinals craze. These sky-high fees are not good for business, and they’re not good for regular consumers either, rendering crypto networks virtually unusable, and damaging their reputation. After all, who in the world is going to use crypto instead of fiat if they have to pay upwards of $50 in fees just to buy a cup of coffee? Fortunately, the ever-innovative blockchain industry has recognized it has a problem with spiraling gas fees, which are an inevitable consequence of blockchains scaling beyond their means. Ethereum has made especially good progress, with a recent update called The Merge helping to enhance its scalability and make $50+ fees a thing of the past. It’s also been aided by the development of Layer-2 networks that bundle transactions together and process them off-chain, so they can be executed as one, much bigger transaction and share the fee between them.  We’ve also seen the emergence of blockchains like IOTA and Nano, which were deliberately architecture with low fees in mind.  Low fees have become a key differentiator in the blockchain industry, especially for DeFi users and traders who regularly perform hundreds of transactions per day. The allure is simple, the lower the fees, the more crypto that’s left in your wallet at the end of the day.  No-Fee & Low-Fee Blockchains The quest to reduce blockchain fees has resulted in the…

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Filed under: News - @ November 11, 2024 9:27 am