High gas fee problem: fee-less transfer on hive blockchainsteemCreated with Sketch.

in Project HOPE5 months ago

A known problem in the crypto space has always been that of scalability, transaction throughput time and fee paid for transactions have always been an issue for an average block user during high network congestion. Ethereum switching to Proof of stake (PoS) couldn't yet resolve their high network demand congestion fee, during an available market bull run proof of work (PoW) and (PoS) based network see an exponential increase in gas fee for executing block transaction, to process any give transactions in a short timeframe one needs to increase their gas fee price which most users find very inconvenient.

These high fee problem isn't just limited to CEX exchange paired token like binance, Coinbase its extends to DeX swapping token on ethereum network CEX and DeX transactions could have high fee which at some points discourage average crypto users from carrying out transactions during high market uptrend.

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Image edited on canva

Fun fact: Sum of $3.1 million was used as transaction fee to send bitcoin to another user. It is considered as the highest transaction fee paid in history. Source

That's huge for transaction fee, block confirmation time during network congestion is another problem on bitcoin blockchain network as it takes an average of 10 minute to complete a block transaction, but during high congestion more time could be required, with lightning network on bitcoin blockchain this problem was supposed to have been resolved but couldn't completely eliminate the transaction fee problem since hosting nodes on lightning network requires some rewards incentive from transactions to maintain these nodes, as much as lightning network on bitcoin network sounds promising it needs low fee to attract more users and also needs some juicy reward to benefit the host this mechanism could allow a node host to adjust their transaction reward fees.

What's the way out

Scalability has always been a limitation for crypto adoption, centralized fiat payment system have always taken the crypto space by surprise with it super fast payment confirmation time what's way out? is to come up with something super fast with less fee, less confirmation time.

VSC Network is building a highly scalable smart contract on hive blockchain with a wrapped bitcoin fee-less transfer mechanism that will enhance users transaction experience of transferring wrapped token using zero fee this is first of its kind introduced by hive blockchain. Here is the full AMA on VSC and bitcoin wrapping.

It takes approximately 15 seconds to complete transactions on this blockchain with zero fee down payment processes time @vsc.network is the new scaling solution for the future of fee-less crypto payment.
Bitcoin transfers tested on VSC an article by @ taskmaster4450 gives a detailed explanation on how this new payment gateway will expose hive blockchain to the world with it decentralized and transparent nature.

Hive blockchain has yet again did what seem quite impossible providing a zero payment system using a decentralized hosted nodes.

In conclusion

High transaction gas fee on both bitcoin and ethereum network has shy away lots of users from interacting with the crypto space, to some crypto isn't ready to compete with centralized payment system because of it transaction waiting time and high fee for payment processing.

With Hive's new development we can say hello to a new era of fast, scalable payment processing system to all to access.

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