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R20231030
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October 01, 2020, 12:07:33 PM
Last edit: October 23, 2023, 07:06:41 PM by R20231030
Merited by zasad@ (1)
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October 01, 2020, 02:25:26 PM
 #2

Sure, it's DEFI, but why not look back at the nature of transaction fees and how Ethereum works. Ethereum confirms the transaction based on the auction organization, who accepts more transaction fees will be confirmed first.
In 2017, we saw high transaction fees due to free airdrop projects, and many people traded them on DEXs at the time, Etherdelta, IDEX. The main reason is the auction mechanism that confirms transactions on Ethereum.

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October 01, 2020, 02:55:53 PM
Merited by Symmetrick (1)
 #3

^ Auction mechanism is already there and the system applies whether there are less transactions or not. The OP's point is letting you know which group is clogging the ethereum network causing fees to shoot up in recent months.

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4. - Ponzi Schemes - Another of the big gas consumers, take a look at the picture from TOP-20 on 2 and 19 contracts. Projects like (Forsage.io and Lionsshare.io). In the first 2 weeks of August, Forsage.io has paid commissions over 5000 ETH. Despite the large amounts, the Ponzi still remains dangerous to participate.
Not only did they scam, they also help make other network users pay more gas Roll Eyes



Meanwhile, eth miners are up 6x compared to btc miners.  Shocked
#Ethereum miners made a total of $166 million from transaction fees in September – a new ATH.

That's an increase of 47% compared to the previous record high in August.

In comparison: #Bitcoin miners made $26M from fees – a difference of more than 6x!
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October 01, 2020, 03:42:24 PM
 #4

~
I'm wondering if Uniswap will still deliver on what they promised, namely gas-free transactions, how will this affect the entire ecosystem at all, and is it even possible to do so now? : - \
Well, I believe they're collaborating with other projects to make layer 2 solution work - Optimistic Ethereum. If they are successful in rolling out the upgrades, we can expect casual traders to start using the exchange. Right now, I feel like most of Uniswap's users are big time traders who can afford $50 fees.

And yes, more scam projects will come out as a consequence of that.
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October 01, 2020, 05:45:32 PM
 #5

This didn't really required any analysis, this was common knowledge and everybody knows about this. What did you assume the high gas prices was caused by? The new shiny new pretty mining equipment? You think 3000's series caused the increase of fee's? Is it the new hair color of Vitalik?

Of course it was caused by defi because it has been used in billions of dollars so far and when you do that much of a trading there bounds to be some sort of transaction clogging that could only be solved by paying high fee, when you pay a high fee you end up with quicker transaction and that is how you end up with high fee's ; people wanting to get quicker transactions paying higher so others pay even higher and it becomes a cycle.

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October 01, 2020, 07:28:52 PM
 #6

With the increase in use of decentralized platforms like uniswap the gas fee kept increasing as well. I clearly remember that i had to pay $2-$3 per transaction including comission and gas in initial days then as the hype gained the fee doubled and recently it is insanely high, I think eth network developers should have an alternative or contingency plan in times of such congestions and high usage. Now we can only put our hopes on eth 2.0 which is launching in few weeks time.

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