Average transaction fee of Bitcoin falls under one dollar
Average transaction fees on the Bitcoin (BTC) blockchain fell under one dollar for the first time for two years, with the aim to support the blockchain’s use case as a mainstream financial system, as reported by Cointelegraph.
According to Cointelegraph, high transaction fees over blockchain networks function against the users, especially for conducting low-value transactions. For instance, Ethereum-based transaction fees went up many times during the non-fungible token (NFT) hype. While the Bitcoin ecosystem sustained its share of high transaction fees, including the Lightning Network and Taproot, aims to ensure faster and cheaper transactions over time. The average Bitcoin transaction fees went down to $0.825. Moreover, with regard to timely upgrades, drop in transaction fees can be related to factors such as falling market prices and lower mining problems. The hindrance of mining a new BTC block has seen a growth with miners gaining access to cheaper hardware, while recovering from the ongoing chip shortage.
On the basis of information by Cointelegraph, month of August marked the end of a three-month long downfall to network difficult, making its recovery back to 28.351 trillion from its freefall stage. Through community efforts, the Bitcoin network has shown signs of a developing financial system in the making. However, users anticipate every network upgrade to bring down gas fees and transaction speeds, as not every sort of upgrade is expected to fulfil the same purpose. For example, the Merge, concerning the Ethereum upgrade, will reportedly not be reducing gas fees. “The Merge deprecates the use of proof-of-work (PoW), transitioning to proof-of-stake (PoS) for consensus, but does not change any parameters that influence network capacity or throughput,” the Ethereum foundation said.
Moreover, Cointelegraph noted that the Merge upgrade concerns the existing execution layer of the Ethereum mainnet with the Beacon chain, to remove the need for energy-intensive mining.
(With insights from Cointelegraph)
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