The Ethereum blockchain is considering overhauling its blockchain from work proof (PoW) to proof of service (PoS). This transaction verification system allows significant energy savings compared to the current model. The question is: How can this change affect Ethereum gas charges?
What is Proof of Bet or PoS?
Proof of Pledge or Proof of Promise (POS), in English, reflects the validated consensus of database entries to secure the blockchain. In this system, the holders of their coins promise to have the opportunity to validate the blocks. Randomly selected validators validate the blocks. However, to become a collector, you have to bet a certain amount of tokens. For example, Ethereum requires 32 ETH bets for a user to be a system collector.
This is an alternative to proof of work or proof of work (PoW). Indeed, in this consensus, the blocks are validated thanks to the computing power provided by a computer.
And what about Ethereum gas charges?
Gas costs have nothing to do with the domestic gas a person uses, contrary to what you might think. Also known as Ethereum transaction fees, they represent the cost to pay to take advantage of an operating network. In other words, all ETH transactions generate fees paid in gas represented by a small share of ETH. The price of gas is estimated in gwei, 1 gwei equals 0.000,000,001 Ether.
These gas charges vary according to supply and demand. The cost of gas is influenced by a number of factors, such as: current gas demand, the computing power demand of smart contracts and the total number of transactions. The main reason for the rise in gas prices is network congestion. The more popular Ethereum is, the higher the gas charges. So the Ethereum 2.0 Serenity update could be a game changer as it will help reduce network congestion.
PoS and Ethereum gas charges
Theoretically, betting proof will reduce Ethereum’s gas charges since it’s designed to reduce energy consumption. In addition, due to the increased scalability of Ethereum 2.0 lower gas charges will be incurred through shard chains.
Fragment chains are like multiple worlds or similar parallel worlds that exist simultaneously. These are parallel Ethereum chains. They act during network congestion and compensate for the workload of the main blockchain chain. As a result, satisfied users pay less gas charges and network transactions are made faster.
PoS implementation replaced POW It is a smart solution that will significantly reduce Ethereum’s gas charges. With the shard chains built into this mode, Ethereum satisfies its users twice by offering very affordable fees and fast service.
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Interested in investment and financial markets after a business school in Chambéry, the passion for cryptocurrencies was evident. The blockchain is definitely the universal tool of tomorrow.