Ethereum Foundation Clearly Says Merger Won’t Increase Fees and Throughput – Bitcoin News

On Wednesday, the Ethereum Foundation clarified that The Merge will not reduce on-chain fees as the much-anticipated transition from proof-of-work (PoW) to proof-of-stake (PoW) is now 29 days away. In the Ethereum Foundation’s The Merge update, last month, Ethereum network costs printed some of the lowest on-chain fees since 2020.

Ethereum Foundation Clarifies “Gas Fees Are A Product Of Network Demand” – Merger Will Not Significantly Change Any Parameters That Directly Affect Network Capacity or Throughput

The Ethereum Foundation wants the public to realize that while The Merge will transition from PoW to PoS, the assumption that fees will drop is false. This statement is added to the foundation’s definition and summary of The Merge hosted on ethereum.org.

This page has been updated several times, the last update occurred on August 16, 2022. Ethereum developers are expected to meet on August 18, 2022.

“Gas charges are a product of network demand relative to network capacity,” explains a summary of the site’s latest update. “The merger deprecates the use of proof-of-work, transitioning to proof-of-stake for consensus without significantly changing any parameters that directly affect network capacity or throughput.”

While Ethereum transaction fees will not change after The Merge, users who want to reduce fees will have to take advantage of Layer 2 (L2) scaling solutions and wait for more Ethereum upgrades. After the merger, Ethereum will implement The Surge, The Verge, The Purge, and finally The Splurge.

Surge aims to help improve scaling by leveraging zero-knowledge rollups (ZK-rollups) through sharding. Ethereum’s The Verge transition will apply Verkle trees to achieve statelessness by using Merkle proof upgrades. While fees won’t drop immediately, Ethereum’s on-chain fees have been at their lowest levels since 2020.

At the time of writing on August 17, statistics from bitinfocharts.com show that the average network fee today is 0.0012 ETH or $2.28 per transfer. Etherscan.io’s Gas Tracker is even lower, showing a high fee of around 22 gwei or $0.85 per transaction.

The Opensea market is selling for $2.90, Uniswap swaps are $7.47, and on Wednesday, each transfer of ERC20 (like Tether (USDT)) was $2.19. L2 fees are the lowest on Loopring and Zksync, as sending ether costs between $0.04 and $0.06.

tags in this story

22 gwei, Ethereum, Ethereum Foundation, Ethereum Foundation update, Ethereum onchain fee, Fees, gas cost, Gas Tracker, L2 Costs, L2 fee, Layer 2, Loopring, Network Gas, onchain fee, PoS, PoW, Proof of Work, Proof -of-Stake, Sept. 15, Technology, The Merge, The Splurge. , upgrade, Zksync

How do you feel about the Ethereum Foundation clarifying that The Merge will not lower fees on the website ethereum.org? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the Head of News at Bitcoin.com News and a fintech reporter living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News on the disruptive protocols emerging today.




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