On Wednesday, the Foundation clarified that The Merge will not reduce on-chain as the much-anticipated transition from -of-work (PoW) to proof-of-stake (PoW) is now 29 days away. In the Ethereum FoundationR7;s The Merge , last month, Ethereum costs printed some of the lowest on-chain fees since 2020.

Ethereum Foundation Clarifies “Gas Fees Are A Product Of Network Demand” R1; Will Not Significantly Change Any Parameters That Directly Affect Network Capacity or

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. The statement was added to The Merge FoundationR7;s definition and abstract hosted on ethereum.org.

This page has been updated several times, the last update occurred on August 6, 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 siteR7;s latest update. “The merger deprecates the use of -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 upgrading with Merkle proofs. While fees won’t drop immediately, Ethereum’s on-chain fees have been at their lowest levels since 2020.

See also  World Bank Says Politicians Are Responsible for 'Intentional Depression' - Bitcoin News

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 fee of around 22 gwei or $0.85 per transaction.

The Opensea market is priced at $2.90, the Uniswap swap is $7.47, and on Wednesday, an ERC20 like tether (USDT) was $2.19 per transfer. 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 costs, Gas Tracker, L2 Costs, L2 fee, Layer 2, Loopring, Network Gas, onchain fee, PoS, PoW, 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 Head of at Bitcoin.com News and a reporter based in Florida. Redman has been an active member of the 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 today.

Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, 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 herein.

See also  What telecommunications companies want and what they get-Business News