For Vitalik Buterin, layer 2 transaction fees should be less than $0.05
Despite the fact the Ethereum blockchain network (ETH) was already known for its low transaction price, the company’s management wants to further reduce the cost of commissions. This was stated by Ethereum co-founder Vitalik Buterin, adding that the price of second-tier transactions should not exceed 5 cents.
Buterin wants to reduce the cost of an Ethereum Layer 2 transaction
The Ethereum blockchain network (ETH) has become one of the most popular digital assets among users. Ethereum received this recognition in 2021 when the field of decentralized finance (DeFi) and non-demountable tokens (NFT) began to develop.
However, such hype around the network caused a significant increase in transaction prices, which forced the company’s representatives to create Layer 2 transactions. This will unload the network and move a certain amount of transaction data to another level.
In particular, Ethereum co-founder Vitalik Buterin, in a response to Ryan Sean Adams, explained that for the transactions to be “really acceptable” the commission on level 2 transactions could not be higher than 5 cents. “Needs to get under $ 0.05 to be truly acceptable imo. But we’re definitely making great progress, and even proto-danksharding may be enough to get us there for a while! ” Buterin replied. In particular, Adams in his podcast Bankless presented various solutions for 2 levels of transactions, as well as prices for transactions, explaining that “this is Ethereum and it is not expensive.”
Layer 2 transaction cost
The blockchain network aggregator L2Fees.info has published data on its resource, according to which the only successful solution for the Ethereum network is to use the open Metis Network protocol. In this case, the cost of the transaction will be $ 0.02, which meets the requirements of Vitalik Buterin. However, despite such a low price, users still have to spend $ 0.14 to exchange tokens.
According to L2Fees.info, the lowest level in the ranking is Arbitrum One, with a transaction price of 7 cents, and Aztec Network, with a commission fee of $ 2.01. It is also worth noting that trading on the Ethereum network was not very expensive: the price per transaction was $ 2.1 and $ 10.48 per token trade.
However, the situation changed somewhat after the successful release of the NFT collection “Otherside” from Yuga Labs. Due to the significant demand for non-fungible tokens among users, Ethereum transaction prices have increased tenfold. As a result, some buyers had to spend more than $ 14,000 to buy a single token.
This phenomenon, called “gas war”, is not new to blockchains that use the Proof-of-Work (PoW) mechanism. Such networks include Ethereum and in general, this has led to a significant increase in transaction fees. So now more and more blockchain networks are moving to the Proof-of-Stake (PoS) mechanism, which uses much less electricity, so the fees are low.
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