- Ethereum users now have to pay ‘unreasonably’ high fees for transactions
- The recent short-term solution to the issue failed
- The Ethereum Improvement Proposal 1559 could come in handy
Cryptocurrency News Today – the digital asset market has posted unexpected price movement in the last week. Bitcoin may have continued struggling to approach the $10K mark, many digital assets saw their price surge without the aid of the king token. Ether reported a strong sentiment. Its ecosystem saw growth with an increase in active addresses. Despite the positive metrics and potential of bullish action due to the coming ETH 2.0 launch, there appears to be a few challenges in the Ethereum network. One of them is a rise in transaction fees.
The Recent Short-term Solution to the Issue Failed
According to a recent report, there has been an increase in addresses and activity on the Ethereum network. And since this happened users now face unreasonably high transaction rates. The short-term solutions haven’t provided much improvement. The report added that miners have collected 2,500 ETH daily in transaction rates for the last 30 days.
While transaction fees of 2,500 ETH isn’t an all-time high point, the duration in which such transaction rates have prevailed is an issue for users. The short-term solution that was put in place has failed to make any difference to the rise in transaction fees. It stated that:
“The persistence of high transaction fees come in despite the introduction of a vote among miners to increase the gas limit for each block (from 10,000,000 to 12,500,000). This proposal was successfully voted in on June 19.”
According to the network data given by Etherscan, the total average gas price on ETH has increased from 11.6 Gwei to 47.5 Gwei between January 2020 to when this content was published. This is a 309.4% rise.
The Ethereum Improvement Proposal 1559 Could Come in Handy
According to the report, there are few viable options for developers to look at. One of these includes include the EIP-1559 (the Ethereum Improvement Proposal 1559). Another one of such solutions is the long-anticipated ETH 2.0 launch. Even though the proposal appears to be an alternate system designed to remove the unstable and “Inefficient” auction model that is currently used to decide transaction rates, ETH 2.0 launch will take up to a year. It is likely not going to offer a near-term solution.
While Bitcoin’s development team has successfully made good of its plans to initiate second-layer solutions like the Lightning Network, layered solutions might positively impact a network and help Ether users who now have to pay skyrocketing transaction fees. According to the report:
“Ethereum has its developers trying to improve the brunt of remittances to a secondary secure platform. Such a system will allow for quicker and more secure transactions, as well as cheaper fees, and better privacy.”