High GAS Fees for On-chain Transactions: Can We Fix It in Time? – hackernoon.com

High GAS Fees for On-chain Transactions: Can We Fix It in Time? – hackernoon.com

image

Andrey Sergeenkov Hacker Noon profile picture

@SergeenkovAndrey Sergeenkov

Cryptocurrency analyst. Founder and editor at btcpeers.com

If you have a quick read-through of the original Bitcoin whitepaper, you will find that part of Satoshi’s ‘sales pitch’ was about the ‘ultimate reduction of the cost incurred from financial intermediation’ that Bitcoin made possible. 

In the exact words used by Satoshi: “The cost of mediation increases transaction costs, limiting the minimum practical transaction size.”

This was written while explaining the inherent cost found in traditional transaction systems as opposed to what Bitcoin offered. 

Sadly, in reality, transactions across Proof of Work (PoW) networks –like Bitcoin as well as Ethereum — are still trapped in a quagmire of high transaction fees. This is quite ironic considering the case Satoshi originally made.

For those new to blockchain investing, high transaction fees are something you probably have been confronted with already.

That being said, this was not the case in the earlier days of cryptocurrencies, across pioneering networks like Bitcoin and Ethereum. 

The ‘Origin of the Fee’ Problem

As you may know, one of the flaws of pioneering blockchain protocols is that miners have the liberty to select
Source…