Blockchain has incredible demand, and the rise in Ethereum gas fees is an indicator that it is nowhere near ready for mainstream usage.
Currently, Ethereum can only handle anywhere between 7-20 transactions per second. On 6 October 2021, 1.3 million transactions were sent on the Ethereum network. A demand so strong has pushed the transaction price up.
Gas is used to send transactions, and the more gas used, the faster the transaction will complete. Bigger blockchain companies are unhappy to wait for this process, so send higher gas prices to cut in the queue.
This high demand for blockchain has caused gas prices to increase rapidly. Recently, sending Ethereum on the network costs roughly $8-$20 per transaction. It costs three times as much to send a token on the network, or use an erc-20 token.
Creating an NFT on the blockchain can be up to 10-20 times the cost of a normal transaction.
So what’s the solution to this?
The solution lies in Ethereum 2.0. Once Ethereum 2.0 goes live, the transactions per second will jump to 2,000-3,000 and after a few years, the blockchain could approach 100,000 per second.
This is a massive jump from the current 7-20 transactions per second that blockchain currently yields. This incredible leap will exponentially reduce gas prices and make utility on the chain skyrocket.
Not only will Layer 2 protocols become obsolete but if Ethereum is successful, many alternate blockchains aiming to take Ethereum’s share of the dapp dominance may also become obsolete.
The Altair update aims to fix issues with staking rewards and increasing protections against malicious users. The idea that the merge is close on the horizon is exciting for users.
The Altair update is set to launch on 27 October 2021. Anyone running an Ethereum node will need to update their software.
Bring on the merge you say?
People are on the edge of their seats for Ethereum 2.0 to launch indefinitely when it merges with the main Ethereum chain. With a sneak status developer of Ethereum’s blog divulging “Now, onward to the Merge .” It could be sooner than one thinks.