Avoid transaction costs for Ethereum
As the second largest cryptocurrency after market capitalization according to Bitcoin, Ethereum is not unrelated to the transaction costs. With the increase in network overload and the growing demand for faster transactions, however, it becomes more and more difficult to avoid these costs. In this article, we will examine the opportunities to minimize your transaction costs for Ethereum.
Understand the transaction costs
Before immersing yourself in solutions, it is important to understand how the transaction costs work on Ethereum. If you send a transaction, your sender must pay the network for gas costs to process the transaction. The price of gas is determined by the blocking of the block (that is to say when the block has been created) and the number of input transactions.
Why are the transaction costs so high?
High transaction costs for Ethereum can be awarded to several factors:
- Overload of the network : If more users join the network, the demand for transactions increases, which leads to an increase in gas prices.
- Complexity of the intelligent contract : The growing use of complex intelligent contracts and decentralized applications (DAPP) has created an increase in the volume of transactions and increases costs.
- gas price -Inflation : The native gas token Ethereum, Ether (ETH), is the main currency used for transactions in the network. With growing demand, the overall supply of ETH drops and causes higher prices.
possibilities to minimize transaction costs
Fortunately, there are several strategies with which you can avoid or reduce transaction costs:
1.
Use an article pocket application with a lower fairy
Arrivals – Applications such as Metamask and the sequel to truffles offer more effective costs for calculating the conventional web portfolio. These applications often use extensive algorithms and network overload forecasts to optimize gas prices.
Example: With Metamask’s “gas price”, you can adjust your cost threshold to 25 ETH or lower, which leads to a considerably reduced gas price.
2.
Select an optimized blockchain platform
Selecting a blockchain platform that optimizes transaction costs can help minimize costs:
* ROPSTEN : A POS network (proof of bet) with a higher limit of lower transaction costs compared to the maint of Ethereum.
* POLKADOT : an interoperability network that allows faster transactions on other channels, which reduces traffic jams and costs.
3.
Optimize your smart contracts
Complex intelligent contracts can increase in gas prices. To mitigate this:
* Use effective contract models
or write yours with Solidity programming language.
* Minimize the complex logic because unnecessary calculations increase gas costs.
* Large transactions divided into smaller and manageable pieces.
4.
Avoid network jam
Reduce network overload by:
* The last stand with the latest blockchain software updates to make sure you run the most efficient version.
* Blockchains often popular , which tend to be less overloaded than others.
* Select a portfolio with offline features so that you can send and receive funds without internet connection.
5.
Watch a wallet in the second supplier
Using a portfolio in the second supplier, transaction costs can be reduced to:
* You do not activate transactions outside the chain , which reduces the need to interact directly with the blockchain network.
* Optimization of gas prices thanks to more effective payment processing methods.
Although the high transaction costs of Ethereum are inevitable because of its growing popularity and complexity, you can apply several strategies to minimize costs. Using brief pocket applications with lower authors, selecting optimized blockchain platforms, optimizing your intelligent contracts, avoiding network traffic jams and taking into account a second supplier portfolio, you can Reduce your transfer of transaction costs.
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