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July 02, 2018, 01:08:47 PM |
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One way to reduce these transaction fees is to remove the intermediaries. This doesn’t eliminate transaction fees altogether; even if intermediaries are removed from a blockchain transaction, there will still be a transaction cost involved in the process. The nodes in a blockchain ecosystem offer computer processing power to service the network, and need to be compensated in exchange for their service – typically in cryptocurrency. This gives rise to transaction fees. Although blockchain transaction costs are lower than those of the banking system in most cases, they can still be a significant amount depending on the blockchain type, and the urgency of the transaction. For instance, current Bitcoin fees per transaction range from USD 20 to USD 30 while Ethereum fees per transaction range from USD 2 to USD 3.
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