Ethereum Foundation Makes It Clear The Merge Will Not Improve Fees and Throughput
On Wednesday the Ethereum Foundation clarified that The Merge will not reduce onchain fees as the highly anticipated transition from proof-of-work (PoW) to proof-of-stake (PoW) is now 29 days away. Amid The Merge update from the Ethereum Foundation, during the last month, Ethereum network costs have printed some of the lowest onchain fees since 2020. Ethereum Foundation Clarifies ‘Gas Fees Are a Product of Network Demand’ — The Merge Does Not Significantly Change Any Parameters That Directly Influence Network Capacity or Throughput
The Ethereum Foundation wants the public to be aware that while The Merge will transition from PoW to PoS, assumptions that fees will drop are false. The statement was added to the foundation’s definition and summary of The Merge hosted on ethereum.org.
The page has been updated on a few occasions and the last update occurred on August 16, 2022. Ethereum developers are expected to convene for a meeting on August 18, 2022.
“Gas fees are a product of network demand relative to the network’s capacity,” the website’s newly updated summary explains. “The Merge deprecates the use of proof-of-work, transitioning to proof-of-stake for consensus, but does not significantly change any parameters that directly influence network capacity or throughput.”
While transaction fees on Ethereum will not change after The Merge, users who want lower fees will have to leverage layer two (L2) scaling solutions and wait for more Ethereum upgrades. Following The Merge, Ethereum will implement The Surge, The Verge, The Purge, and finally The Splurge.
The Surge aims to help improve scaling by leveraging zero-knowledge rollups (ZK-rollups) via sharding techniques. Ethereum’s The Verge transition will apply Verkle trees in order to achieve statelessness by using the Merkle proof upgrade. Even though fees will not be reduced right away, Ethereum’s onchain fees have been at the lowest rates since 2020.
At the time of writing on August 17, bitinfocharts.com statistics show the average network fee today is 0.0012 ether or $2.28 per transfer. Etherscan.io’s Gas Tracker is even lower showing a high fee is around 22 gwei or $0.85 per transaction.
An Opensea marketplace sale is $2.90, a Uniswap swap is $7.47, and transferring an ERC20 like tether (USDT) is $2.19 per transfer on Wednesday. L2 fees are the lowest on Loopring and Zksync as costs can range between $0.04 to $0.06 to send ether. Tags in this story 22 gwei, Ethereum, Ethereum Foundation, Ethereum Foundation update, Ethereum onchain fees, Fees, gas costs, Gas Tracker, L2 Costs, L2 fees, Layer two, Loopring, Network Gas, onchain fees, PoS, PoW, Proof of Work, Proof-of-Stake, September 15, technology, The Merge, The Splurge., Upgrade, Zksync
What do you think about the Ethereum Foundation clarifying that The Merge will not reduce fees on the website ethereum.org? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. While the "Timeline Isn"t Final," Ethereum Could Implement The Merge on September 19 TECHNOLOGY | Jul 16, 2022 Ethereum Devs Delay Difficulty Bomb — ETH 2.0 Contract Surpasses 13 Million Ether Deposits TECHNOLOGY | Jul 9, 2022
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCelsius Approved to Sell Mined Bitcoin, Customer That Lost 50,000 USDC Insists Her Regulated Stablecoins Should Be Treated Differently Next articleRich Dad Poor Dad’s Robert Kiyosaki Changes His Mind About Treasury Bonds — Says ‘Time to Open My Closed Mind’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItBill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments
Russia’s recently revised bill “On Digital Currency” limits crypto purchases for non-qualified investors while providing legal ground for some cryptocurrency payments, according to local media. The draft law, proposed by the Russian finance ministry, also introduces strict requirements for platforms ... read more.Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin