I have a sincere question about #Ethereum.
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@BenjaminNelan that's an excellent explanation. Thank you.
Do you think it'll ever get so transactions are essentially free? -
Terence Edenreplied to Third spruce tree on the left last edited by
@tezoatlipoca
Please re-read my original post. I'm not looking for snark. I'm well versed in how crypto works. I want to understand why its supporters support it. -
@Edent It's already much better than it was when they were proof-of-work, there were times during 2021 where a transaction of $400 could cost you $40 in fees.
And it fluctuates with demand vs how many people are validating transactions.
It's possible those could level out and result in fees that are almost non-existent but it's hard to say given how Ethereum is setup. Compared to currencies like Nano that have zero-fee transactions built-in. (I'm not sure how tbh)
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@Edent nice! We have something similar in Canada, up to a particular limit; I think a few thousand CDN$
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@Edent Main reason is to prevent transaction spamming. Most of fee gets destroyed, except if you decide to pay priority fee, priority fees go to miners.
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Timotheus Pokorrareplied to Terence Eden last edited by
@Edent running a decentralised network does cost money. so the fees are used to pay for the servers that do the calculations for adding the block to the #blockchain and store the blockchain data which is quite huge.
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@Edent When you transferred money between bank accounts, *somebody* paid for it. They have servers, they have staff writing software for and maintaining those servers, that all costs money. It came from somewhere, they just didn’t explicitly tell you where. If you found out where, you might not like it. The gas fee is explicit and up-front and you can decide if that fee and its consequences are worth it to you.
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@hagarashi8
What is transaction spam?
In the UK, it is normal for people to send "a penny for your thoughts" or other messages with trivial sums. -
Terence Edenreplied to Timotheus Pokorra last edited by
@tpokorra
Running a decentralised banking network is also expensive. But i get paid to store my money in a regular bank and don't have to pay for services and transactions. -
@ratkins
That's an interesting point. -
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Timotheus Pokorrareplied to Terence Eden last edited by
@Edent that is because your bank is allowed to work with your money. And you are lucky with your bank. Many banks charge more and more, at least in Germany.
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@Edent Well, if you don't have to pay gas you could just transfer a cent million times per second to a million different wallets and that would be pretty tough for rather slow ethereum network.
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@Edent Even funnier if it would be some smart contract with a lot of computations
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Terence Edenreplied to Timotheus Pokorra last edited by
@tpokorra move to a better country, I guess?
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@hagarashi8 can it really not scale to handle that many transactions?