Zero Transaction Fees: What's the catch?

[Abiky]

I've been enjoying cryptocurrencies with zero transaction fees like Nano and EOS, as they prove to be economically feasible for cross-border payments. While their level of adoption is not as comparable as Bitcoin or Ethereum, they're still a great option for digital payments. Zero fees and near-instant transaction confirmation times, seem to be the way of the future. Or is it? I mean, what's the catch with cryptocurrencies that don't charge fees to their users? Will they be able to survive for a very long time? Or will they turn into an idea that will fade into oblivion?

Whatever the case may be, cryptocurrencies with zero fees could eventually replace DASH or Bitcoin Cash's place as "digital cash". This greatly contributes towards the adoption of crypto and Blockchain technology in general. The only limitation would be price volatility. But imagine a stablecoin built on a Blockchain network with zero fees. It will be completely revolutionary, in my own opinion. Thoughts

[1715103772]

1715103772

[Eddyc]

Regarding the topic, I can say that I spent some time to understand this issue and in my opinion the system is self-sustainable because the costs are corrected in the volatility of the market. However, the major system in the world is capitalism and all technological creation is based on capital. To conclude, I believe that there is no trick, but a very large energy demand to compensate for zero costs or even as I mentioned above is based on market definitions.

[semobo]

But imagine a stablecoin built on a Blockchain network with zero fees. It will be completely revolutionary, in my own opinion. Thoughts

A stable coin can never be a decentralized crypto so in general it works against the crypto currency vision.Cryptos with zero fees are great for instant transaction but in reality people still don't trust them completely that is why they are investing more on bitcoin,ethereum.

[coupable]

EOS and NANO or any other [called] stable coin are not really free. You still have to pay the miner for broadcasting your transaction into a valid block. However, it's sheapper than bitcoin. The main issue here that all of them are centralised projects who are controlled by a third part entity which can manipulate the network.
I agree that some of them can be used for daily small paiements, but not to be recommended with big money. However, some other cryptos can be a great alternative, considering the fees, the anonymity, the speed of the transaction, and they are also opened source; i invite you to take a look at Monero and Grin, both of them have some great characteristics which are missed with bitcoin. For long term run, and if we miss some essential updates in the blockchain of bitcoin, we may see a new coin appear to be more useful than bitcoin in some of his aspects .

[Little Mouse]

I do not have a lot of idea about zero fee tx. What I know is it was possible to have bitcoin tx confirmed with zero fee long ago. Anyway, what is the model of such zero fee coins? Who do the verification?  Miners of course. What incentive they receive? At some point, when this coins will reach max supply, there will be no block reward, right? Then how will the network exist? I think in long future, it may developed to another model but the current one does not seem good to me.

[Abiky]

I do not have a lot of idea about zero fee tx. What I know is it was possible to have bitcoin tx confirmed with zero fee long ago. Anyway, what is the model of such zero fee coins? Who do the verification?  Miners of course. What incentive they receive? At some point, when this coins will reach max supply, there will be no block reward, right? Then how will the network exist? I think in long future, it may developed to another model but the current one does not seem good to me.

It's possible to send Bitcoin with a very low fee, but it might take from hours to a day to become confirmed on the Blockchain. Most merchants and businesses require 3 to 6 confirmations on the Blockchain. With a 10 minute block time and a very low fee, the wait time for the transaction to become fully-confirmed on the Blockchain will be longer than usual. Cryptocurrencies with "zero transaction fees" often have near-instant block times making sending/receiving transactions extremely convenient to the end user. I believe that they're often inflationary in order to pay miner's expenses one way or another. It's no secret that EOS' block producers are basically earning coins from EOS' inflationary model. With no fees to the end user, sending payments across border becomes extremely practical.

No one knows whenever a model of a zero transaction fee will work out in the long run or all the other way around. Most people say that this is not self-sustainable, as it makes the cryptocurrency depreciate in value over time. Cryptocurrencies with a zero transaction fee like EOS, NANO, and IOTA might cease to exist in the future because of this. If they manage to survive for long, new cryptocurrencies will copy their model in order to become more attractive to everyday people. Fees or no fees, what matters is mainstream adoption for any cryptocurrency to succeed in the mainstream world. Just my thoughts

[AmoreJaz]

I do not have a lot of idea about zero fee tx. What I know is it was possible to have bitcoin tx confirmed with zero fee long ago. Anyway, what is the model of such zero fee coins? Who do the verification?  Miners of course. What incentive they receive? At some point, when this coins will reach max supply, there will be no block reward, right? Then how will the network exist? I think in long future, it may developed to another model but the current one does not seem good to me.

It's possible to send Bitcoin with a very low fee, but it might take from hours to a day to become confirmed on the Blockchain. Most merchants and businesses require 3 to 6 confirmations on the Blockchain. With a 10 minute block time and a very low fee, the wait time for the transaction to become fully-confirmed on the Blockchain will be longer than usual. Cryptocurrencies with "zero transaction fees" often have near-instant block times making sending/receiving transactions extremely convenient to the end user. I believe that they're often inflationary in order to pay miner's expenses one way or another. It's no secret that EOS' block producers are basically earning coins from EOS' inflationary model. With no fees to the end user, sending payments across border becomes extremely practical.

No one knows whenever a model of a zero transaction fee will work out in the long run or all the other way around. Most people say that this is not self-sustainable, as it makes the cryptocurrency depreciate in value over time. Cryptocurrencies with a zero transaction fee like EOS, NANO, and IOTA might cease to exist in the future because of this. If they manage to survive for long, new cryptocurrencies will copy their model in order to become more attractive to everyday people. Fees or no fees, what matters is mainstream adoption for any cryptocurrency to succeed in the mainstream world. Just my thoughts

actually you have valid point on that. look at those alts created to have zero to near-zero fee transactions trying to address bitcoin's expensive tx fees, i bet most of them are dead. so without significant adoption, a particular project can't survive. EOS/NANO/IOTA are still in the market because as compared to those other alts with zero-fee tx, they are more popular among crypto users. however, how many platforms or companies are using these networks as part of their payment method? not so many, right? so even if they are offering such 0-fee tx, if adoption is not on their side, they will not survive.

[Leonardo7]

Currently the ethereum network is clog making traders to pay huge transaction fees as high as $50 as the case maybe. So near zero transaction fees will ultimately lead altcoins in the future. It's known that ETH TPS is 15 while EOS is 4,000 TPS that is a lightening years ahead of ETH, I don't currently have any EOS account just that I only trade EOS on exchanges for now. What is the use of a crypto project where you are made to pay huge fees! same thing we accused the traditional system off.

[qwizzie]

I've been enjoying cryptocurrencies with zero transaction fees like Nano and EOS, as they prove to be economically feasible for cross-border payments. While their level of adoption is not as comparable as Bitcoin or Ethereum, they're still a great option for digital payments. Zero fees and near-instant transaction confirmation times, seem to be the way of the future. Or is it? I mean, what's the catch with cryptocurrencies that don't charge fees to their users? Will they be able to survive for a very long time? Or will they turn into an idea that will fade into oblivion?

Whatever the case may be, cryptocurrencies with zero fees could eventually replace DASH or Bitcoin Cash's place as "digital cash". This greatly contributes towards the adoption of crypto and Blockchain technology in general. The only limitation would be price volatility. But imagine a stablecoin built on a Blockchain network with zero fees. It will be completely revolutionary, in my own opinion. Thoughts

Cryptocurrencies with zero transaction fees will always be vulnerable to spamming and flood attacks. Transaction fees prevent spamming / flooding attacks.
Also Dash has excellent protection against 51% attacks (through ChainLocks) and excellent protection against Sybil attacks (through the collateral of 1000 Dash for each masternodes, making a Sybil attack on its network extremely costly).

Link : https://www.liteforex.com/blog/for-investors/cryptocurrency-attacks-types-of-vulnerabilities-risks-and-results/

Not to mention that Dash has transaction protection against doublespending through its masternode network and superior transaction security through ChainLocks (which is why Coinbase only requires 2 transaction confirmations for deposits --> https://dashnews.org/coinbase-pro-confirms-dash-deposits-12-times-faster-than-bitcoin/).

But most importantly : Dash can confirm and settle a transaction in 2-4 seconds. Which means Dash transactions will only take 2-4 seconds from sender to receiver and with receiver being able to spend the amount.
The send, receive, spend (also known as transaction settlement) is just incredible fast and highly secure with Dash.

With zero transaction fees people should be aware that there will be a high number of transaction confirmations required by exchanges and other services, before transactions are considered to be safe and immutable.

[Iyanu14]

I've been enjoying cryptocurrencies with zero transaction fees like Nano and EOS, as they prove to be economically feasible for cross-border payments. While their level of adoption is not as comparable as Bitcoin or Ethereum, they're still a great option for digital payments. Zero fees and near-instant transaction confirmation times, seem to be the way of the future. Or is it? I mean, what's the catch with cryptocurrencies that don't charge fees to their users? Will they be able to survive for a very long time? Or will they turn into an idea that will fade into oblivion?

Whatever the case may be, cryptocurrencies with zero fees could eventually replace DASH or Bitcoin Cash's place as "digital cash". This greatly contributes towards the adoption of crypto and Blockchain technology in general. The only limitation would be price volatility. But imagine a stablecoin built on a Blockchain network with zero fees. It will be completely revolutionary, in my own opinion. Thoughts

Well I still don't know where they actually get their maintenance fees since they are not charging transaction fees?  But let's see it this way, in the case of EOS, you can't just get their wallet for free, there is a particular charge accruing to that, may be that's part of the area they cover up for their non-transaction fees charges.  Whichever way, it's a nice thing and I hope they get more adoptions like ETH and BTC.

[amos77978]

theres zero transfer fees for eos.. wow.. I wasn't aware of this .. I've owned eos before and I never knew it's a cryptocurrency with zero transfer fee.. maybe I will check it our

[Abiky]

Cryptocurrencies with zero transaction fees will always be vulnerable to spamming and flood attacks. Transaction fees prevent spamming / flooding attacks.
Also Dash has excellent protection against 51% attacks (through ChainLocks) and excellent protection against Sybil attacks (through the collateral of 1000 Dash for each masternodes, making a Sybil attack on its network extremely costly).

Link : https://www.liteforex.com/blog/for-investors/cryptocurrency-attacks-types-of-vulnerabilities-risks-and-results/

Not to mention that Dash has transaction protection against doublespending through its masternode network and superior transaction security through ChainLocks (which is why Coinbase only requires 2 transaction confirmations for deposits --> https://dashnews.org/coinbase-pro-confirms-dash-deposits-12-times-faster-than-bitcoin/).

But most importantly : Dash can confirm and settle a transaction in 2-4 seconds. Which means Dash transactions will only take 2-4 seconds from sender to receiver and with receiver being able to spend the amount.
The send, receive, spend (also known as transaction settlement) is just incredible fast and highly secure with Dash.

With zero transaction fees people should be aware that there will be a high number of transaction confirmations required by exchanges and other services, before transactions are considered to be safe and immutable.

That's certainly true, mate. I guess that cryptocurrencies with "zero transaction fees" often sacrifice security/reliability over convenience. They'll become no different that traditional payment processors in the mainstream world which are subject to extreme manipulation and fraud. I always admire DASH's work, as it aims to "tackle" many of the inherent issues of crypto/Blockchain tech. The "Chainlocks" feature is "killer" in my own opinion, as it makes 51% attacks on the network virtually impossible to achieve. While DASH doesn't have zero fees, it's relatively dirt cheap costing less than a penny per transaction. It's best to collect fees on the network, just to keep the Blockchain as secure as possible against external attacks. Bitcoin may have the highest fees on the market today, but its security and reliability are unmatched. It's no wonder why it's the most valuable cryptocurrency on the market.

Nonetheless, cryptocurrencies with zero transaction fees may turn out to become a "niche" than anything else. They'll turn into an idea that will slowly fade into oblivion. Knowing that 75% of transactions on the EOS blockchain are made by bots (based on a study made by AnChain.AI), shows us that zero transaction fees greatly undermine the security and stability of the network over the long term. In blockchains of this type, anyone can flood the network with many transactions until it becomes unusable (as transactions are virtually free). Remember, fees were created for a reason. They're not a bug, but rather a feature in order to make the Blockchain as resilient as possible against spam attacks. Just my opinion

[Chukwunonso]

It's awesome to have cryptocurrency that can be used for payment without any transactions fee, but my concern is on the rewards which would be ascribed to the miners or stake holder as the case may be. I don't think they can depend solely on the volatility of the market to keep the systems running. It would be best if there's a system in place to give substantial reward to the stakeholders.