Maintaining value over one’s cryptocurrency can be tough as one techpreneur realized. Vitalik Buterin, the top honcho and publicly declared founder of the second-biggest cryptocurrency-backed blockchain in the world today, reportedly offered support to keep Ethereum’s viability in the long run.
Buterin had to mention what other blockchain technology enthusiasts have been saying to keep their respective cryptocurrency trading system relevant – rent fees. Tokens would be utilized to post charges on the ecosystem based on how long users would want stored data to stay in the blockchain. And since the blockchain technology maintained in the Ethereum network functions based on the ETH tokens, rent fees meant increased usage of these utility tokens.
Since it involved investing in more tokens, some users accustomed to this coin trading software anticipated increase in purchases. And Buterin addressed in his blog post how some ETH token users would cry foul in case they see rates rise to alleged unacceptable levels. They get the bad end of the deal if they invested in tokens at a time when their prices drop around the same time when ETH token usage increases.
Buterin’s solution to this is by coming up with a “maximum acceptable long-run worst-case scenario state size”. In other words, a certain data cap estimated at 500GB would be in place as opposed to standard practice of having “1-2 orders of magnitude” lower than the 500GB proposed data cap. In effect, it avoids the possibility of an Ethereum version of the Bitcoin bubble. Not that the latter has happened already. But more and more pundits have been turning investors away from Bitcoin for fear of witnessing a fully-realized bubble within years of its volatile performance.
Calculations provided involved “storing 500GB” since 1 byte is estimated at 0.000001 ETH. So storing a smart contract with 24,000 bytes would cost about 0.024 ETH (~$15) annually while another contract with 250 bytes would cost about 0.00025 ETH (~$0.15) annually. The logic behind this is to put a price tag on said contracts since within this type of coin trading software, transaction fees are based on agreements encoded in the smart contracts, not on perceived prices of cryptocurrency traded.