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RE: Ethereum's Growth Bottleneck: Can Rising Prices Support Usability Cost, or will @dan's new EOS Project Prove A Heavy Contender...?
@rok-sivate I'm a developer and make some apps and dapps. I don't see the gas price as an issue since this is not connected to the Ether price ... it is calculated depending on how much data needs to be proccsed. I had an issue before with high gas prices ... but this has more to do with the development of the dapp then the price of Ether.
I would sugest some deeper research and you will find the Ether price is not conected to the gas price ... pleas correct this in your articel.
Thank you.
Thanks for your input / the clarification... 👌
@rok-sivante to go more in depth
First, at the time of this comment, the transaction cost of sending someone ETH is 0.00042 ether (3.75 USD cents). As you know, Ethereum transaction cost (regardless if sending Ether or DAPP usage) is derived not based on ETH price but on gas. So, if ETH price doubled today, the cost of sending Ether to my friend or a merchant would remain right around 3.75 USD cents. Same goes for DAPP operation costs.
Vitalik replied on Matus Lestan's reddit post (which you linked in your article). He explained that the fee is high because this function of the DAPP (profile creation) is coded "highly suboptimal". It shouldn't cost 3.7m gas to create a profile. That’s the issue — the DAPP in question isn’t optimized.
You also linked the gas price chart in your article -- https://etherscan.io/chart/.... Notice on that chart the Ethereum network transaction cost (gas price) is trending down, and remains low. I should emphasize this: The cost of sending ether / running DAPPs is not increasing; it’s actually going down. This is due to (1) more miners joining pool and (2) free market gas prices which is not controlled by miners; it’s determined by free market between Ethereum users / DAPP developers max gas price and gas minimum gas price is set by miners. It’s not controlled by any one party. It’s complex, but it’s smart and scalable, and for the every day Ethereum DAPP user (e.g. Coinbase user trying to send a friend some Ether), it can be abstracted / behind the scenes.
Again, it’s important to understand how gas price (i.e. the cost of operating or using a DAPP) is decoupled from ETH price. I don't foresee Ethereum scaling issues in the foreseeable future. The main challenge will be for DAPP developers learning how to use the Ethereum IDE / libraries and best practices to better develop efficient DAPPS / get their costs of operation economical.
Source: http://www.coindesk.com/ethereums-double-edged-sword-will-rising-price-hurt-users/
excellent thorough insight.
crazy to think the guys at Coindesk allowed that article to be published!
and great to see you had duplicated this comment there - I was about to do the same.
True I posted the source as well.
It seems ETH price is beeing under supresion some how?
I don't know enough to comment on that.
Though if I were to take a guess, I'd say it's simply market forces at work - no asset value rises indefinitely that fast. ETH has had a HUGE price increase over the last month - it's almost surprising it hasn't had a deeper retracement - though perhaps the corrective wave is just flatter. Inevitably, with all the developments taking place in the Ethereumsphere, price shall continue for another upward wave sooner or later...
Sounds good cheers to that