"Analyzing gas fees on Ethereum and layer 2 solutions"

Assalam O Alaikum

Hello dear friends! Well come to my post. How are you all? I hope you will be doing well by the grace of Almighty Allah. I'm also fine and enjoying my day. Today I'm here to share my knowledge with you about the topic "Analyzing gas fees on Ethereum and layer 2 solutions" in this Steem Alliance community. So let's start without any more delay of time.

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Gas fees, a very crucial aspect of digital currencies like Bitcoin, Ethereum and many other crypto currencies. As we know, the Ethereum is one of the most famous decentralized platform which has a crucial role in the development of decentralized apps but it is creating significant challenges for the users in terms of charging high gas fees on validating transactions and storing crypto currencies in their wallets.

But on the other hand, the layer 2 protocols, are providing significant solutions to the people who are forced to pay higher fees on the transactions. In the Ethereum blockchain, the gas fees is usually paid by the miners when the process and validate any of transaction within the network. That fees boost the speed of transaction but the fees may be changed during different intervals of time.

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Especially, during the when the network is congested, the speed of transactions have been slowed the people are forced to pay a high amount of gas fees to validate their transactions smoothly, seamlessly and quickly. On the Ethereum blockchain, different types of factors which can influence the speed of transaction and eventually the mining gas fees.

These factors are including the, demand for network, complexity of transactions and the amount of fees which is set by the network. During the different intervals of time, several types improvement have been made by the developers to enhance the gas fees on transactions. But even with the addition of these improvements, the gas fees remained volatile and fluctuating especially during the high traffic of transactions on website platform.

In the Ethereum blockchain, the higher gas fees in creating significant challenges for the users especially for the new users. This is because, sometimes they have to pay a high amount of fees, even on a smaller transactions. That thing can discourage the new users of the platform to participate in further activities on Ethereum blockchain and in engaging with others decentralized apps.

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Just think yourself, a platform where the users have to pay a high amount of fees even over small transactions, then how they will be able to participate in further activities on it? So that thing create major challenges for the developers and for participants as well. Also that thing keeps the people away from participating in different activities within the platform.

Furthermore, the higher gas fees, leads towards the inequality as the people with great capital can validate their by paying higher amount of fees but the people with lower capital can't afford high fees, then they stay behind them. On the other, the layer 2 protocols, are providing a prominent solution to address with the high amount of fees on smaller transactions.

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The layer 2 protocols, validate transactions off to the main chain and then sent them back to the main chain after processing. That thing Lower the burden of transaction on the Ethereum blockchain and eventually the amount of fees also reduced. Also the transactions are validated quickly and seamlessly. This is because, many of layer 2 protocols are involved in that process including the plasma and roll-ups.

The roll-ups plays a most significant role there because they, record, very and validate a large number of transaction single Handley and reduce the burden of transaction on main network. So, we can say that, the addition of roll-ups and plasma, will definitely decrease the gas fees and make the network more efficient secure and scalable.

Conclusion

In conclusion, we can say that the higher gas fees is a prominent issue on Ethereum blockchain which put many negative impacts on the working and overall performance of network. But the layers solutions including the plasma chains, roll-ups and others plays a vital role in eliminating that issues from the network and lower the gas fees which increase more opportunities for people.

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Written by @abdullahw2

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