Investing.com – The blockchain remains in high demand. The development lead in the field of smart contracts still ensures that the platform is the undisputed market leader in the field of DeFi (decentralized finance) and NFT (non-fungible tokens).
It is therefore not surprising that the ether in the focus of investors is comfortably listed above the important threshold of $ 3,000. The daily profit is 6.72 percent at an ETH rate of $ 3,407.
Ether transaction costs are increasing
However, there are smart-contract-capable blockchains, such as and, which want to compete with Ethereum for its rank as the top dog, because the ETH chain also has problems.
One of these problems is transaction costs, which are continuously increasing. These costs are also not fixed; they fluctuate depending on the network load. Another important factor that affects costs is how quickly you want a transaction to be completed.
Especially with NFT trading, three-digit dollar amounts are often due. Which is no wonder, because who likes to wait unnecessarily long for the goods they buy?
How does that work with the Ethereum transaction costs?
In connection with the costs of an Ethereum transaction, one always comes across the term gas. What is meant is the fraction of an ether. If you divide an ETH by 1,000,000,000, you get the smallest part of this crypto currency, which is also known as Gwei. The gas prices are given in exactly this unit – Gwei.
If you want to carry out a transaction on the network away from a platform that uses a fixed fee structure, you have the amount of the fees in your own hands. However, the minimum is 4 Gwei.
But if you really want to process a transaction for 4 Gwei, you need a lot of time. Because with this fee, the miners are paid for their computing power, which is necessary to process the transaction.
The problem is that the miners can choose which jobs to accept. So it can happen that such a badly paid transaction is never completed. After all, who likes to work for a minimum wage when there are more attractive offers?
It is therefore obvious that the speed of a transaction on the Ethereum blockchain also has its price. Those who need fast transactions have to dig deeper into their pockets.
Average gas prices reached their preliminary three-month high of 102 Gwei on August 25th.
Cardano and Solana are alternatives
However, there are alternatives to Ethereum as well. One of them is Cardano – the blockchain, which will become smart contract-capable with the Alonzo upgrade on September 12th.
Another is Solana, the world’s first blockchain based on the proof-of-history principle. In addition, there is the SafeCoin that emerged from a Solana fork. Both can score points with very low transaction costs and tremendous speed. It remains to be seen whether that is enough to get DeFi and NFT projects to move.
From Marco Oehrl
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