All eyes were on Ethereum this morning. NFT on the blockchain immediately after the Merger cost over $60,000 in transaction fees. But what happened then? What effect will the Merger have on gas costs?
NFT collection in history!
The entire blockchain industry has taken a careful look at the Merge Ethereum. The transition of the blockchain from a proof of work mechanism to a proof is involved went without a hitch this 15 July this morning. All observers and actors of the blockchain ecosystem could breathe a sigh of relief. It is at 8:42 sharp that this move has become official.
In just a few seconds, the it involved the first NFT hit on Ethereum’s proof-of-concept version. To consider the latter, the user had to pay huge gas costs. These are not really less than 36.8 Ether that was needed. This shows more than $60,000.
I received the first transaction
— The Transition (@0xTransition) September 15, 2022
17 seconds after the Merge, this NFT from the collection “ The Transition Year therefore had to meet. The second represents a pandathe symbol of the Merger, with various references related to this historical change for the Ethereum network. 100 copies of this NFT available.
You can already find them on the OpenSea market. The current best bid is 0.6 ETH. If multiplied by 100, the business would therefore be profitable. However these exceptional circumstances raise the question of the gas costs and the impact of the Merger on them.
Will the Merger reduce gas costs?
The merger was the most anticipated event of the year for the crypto market. It has a significant impact and many experts agree on its benefits. A scalability more important, a energy footprint now almost zero and network costs are down. However, some observers ask a question this last statement.
You would think that when the proof of work was abolished and the increased potential of the web,. Ethereum would do with traffic congestion. Therefore, there will not be any more significant gas costs, such as during the minting of the expected NFT collections or during any other event that will significant number of transactions. However, the reality is more complicated than that.
It is here the origin of ethereum she herself made things clear this summer. The Merger will not reduce transaction fees. Here’s what she said:
Gas charges are a result of network demand versus network capacity. The Merger deprecates the use of proof-of-work, and moves to proof-of-stake consensus, but does not significantly change parameters that directly affect network capacity or throughput.
The Merger aims in particular to prepare for one of the next steps: the shaving. This separation process will affect the scalability and more definitely on network charges. Sharding consists of share database horizontal for better distribute the load. Ethereum will employ this process in conjunction with rollups to better distribute the load on the network.
Series 2 to the rescue!
For the time being and to limit costs, Ethereum is focusing on second tier solutions, famous rollups. While waiting to be trimmed, they are the ones who need to improve the scalability of the network and let users pay less fees. The Ethereum Foundation says about rolling up:
With a rollup-centric roadmap, efforts are focused on increasing user activity at Layer 2, while enabling the Layer 1 Mainnet to be a decentralized and secure settlement layer, optimized for rollup data storage for rollup transactions exponentially cheaper.
These second tier solutions have been very successful in recent months. Users recommend these solutions that can save significant amounts on gas costs. Companies such as Starbucks or Coca-Cola have chosen to do so polygon for these reasons. hope, Boba’s network or Arbitration also very successful networks.
Also for now, the solutions remain absolutely necessary with the rise of Ethereum. the Cropping is expected in 2023 according to Ethereum’s official website although no specific date has been announced yet. This process allows solutions such as Beside to treat a huge number of transactions without worrying about traffic jams.
To learn more about the Merger and its consequences, find our article here.
