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Does Ethereum Have Fees

What Is Ethereum Gas? [the Most Comprehensive Step-by-step Guide Ever!]

What Is Ethereum Gas? [the Most Comprehensive Step-by-step Guide Ever!]

Ethereum Gas is a factor of estimating the computational performance of running transactions or smart contracts in the Ethereum network. This method is related to the application of kilowatts (kW) for estimating electricity of the house; the electricity utilized by people isnt estimated in dollars and cents but preferably over kWH or Kilowatts per hour. The price is not demanded by wallets or other assistance providers; rather, it is given to miners for mining blocks of activities and for defending the Ethereum blockchain. This price is given by users to miners and is subtracted from their total transaction value. Ethereum Gas is the lifeblood of the Ethereum ecosystem , there is no other way of putting that. Gas is a unit that measures the amount of computational effort that it will take to execute certain operations. Every single operation that takes part in Ethereum, be it a simple transaction, or a smart contract , or even an ICO takes some amount of gas. Gas is what is used to calculate the amount of fees that need to be paid to the network in order to execute an operation. In this guide, we are going to understand how gas works. But before we do so, there are several concepts that we must learn. So, without further ado, lets begin our deep dive on Ethereum Gas. Bitcoin, Ethereum, and the Advent of Smart Contracts Bitcoin was created because everyone was asking the same questions. Will it be possible to create a form of money which can be transferred between two people without any middleman? Will it be possible to create a decentralized money which can function on something like the blockchain? Satoshi Nakamoto answered these questions when he created bitcoin . We finally had a decentralized monetary system which can transfer money from one person to another. Howe Continue reading >>

Is Ether Needed For Transaction Fees?

Is Ether Needed For Transaction Fees?

Yes. Ether is necessary for Ethereum network security and operational efficiency for miners. The notion that transaction fees on Ethereum can be paid in-protocol by something other than ether (such as an ERC20 token) is called 'economic abstraction'. We explain why the Ethereum protocol is unlikely to integrate economic abstraction below. Economic abstraction is often used to argue that the value of Ether will go to 0. The theory is that users could pay their transaction costs to miners in something other than Ether. Therefore, if that becomes rampant, Ether itself would have no value. This argument can be used on any Proof-of-Work blockchain, it's an especially popular criticism against Ethereum since it appears easy to create additional ERC20 tokens that can be exchanged for Ether. Quick recap on how transactions work on Ethereum. Each transaction uses a set amount of gas. Users pay miners to include their transaction using a gas price. Gas * Gas Price = transaction cost. The base protocol assumes gas price in ETH and every wallet calculates transaction cost in total ETH to pay. The argument against ETH value begins here. It says that users could pay their transaction cost in some currency or token instead of Ether, including digital USD. Miners could then directly sell tokens or currency into the currency of their choice. While rebuilding Ethereum to accept multiple currencies (even USD) is theoretically possible, this argument ignores how digital native tokens like Ether or Bitcoin act as a layer of security for the system. Tokens like Ether reduce the profitability of network hacks by tying network security to the value of the network's medium of exchange. If network security gets hit, so does the value of the token transacted on the network. Imagine a rogue miner Continue reading >>

5 Best Ways To Buy Ethereum / Ether Classic With Credit Card Online

5 Best Ways To Buy Ethereum / Ether Classic With Credit Card Online

Jordan Tuwiner Last updated July 13, 2017 Most people try to mine Ethereum but then get frustrated with the high up-front costs. People want Ethereum, so the easiest way to get Ether ends up being by simply just buying Ethereum tokens or Ethereum Classic. This post will show you how to buy Ether with any of the following payment methods. Note: Before you buy Ethereum make sure you have a secure place to store your Ether! An Ethereum hardware wallet is the most secure option although not free. Buy Ethereum with Credit Card or Debit Card There are many ways to buy Ether with a CC and this section will discuss the 3 best options. Note that the fees will be around 3.5% for most options. In the USA, Europe, Canada, UK, and Singapore, Coinbase is the easiest way to buy Ethereum with a credit card. The fees will amount to 3.75% and you can buy instantly. Note that Coinbase only sells Ether and not Ethereum Classic. To buy Ethereum Classic you need to buy bitcoins on Coinbase and transfer the bitcoins to Poloniex to exchange them for Ethereum Classic. CoinMama is a nice option because you can buy less than $125 worth of Ethereum without the need to verify your identity. You can instantly sign up and buy Ethereum. You can have Ether in your wallet within about 20 minutes. The downside to CoinMama is the fees are pretty high and come out to around 7%. CoinMama supports credit and debit cards from basically any country. Note that CoinMama only sells Ether and not Ethereum Classic. To buy Ethereum Classic you need to buy bitcoins or Ethereum on CoinMama and transfer the bitcoins to Poloniex to exchange them for Ethereum Classic. Bitpanda is a Bitcoin broker based in Austria and now sells Ether as well as bitcoins. BitPanda has some good and low fees for buying ETH with a credit ca Continue reading >>

What Is Gas? | Myetherwallet Knowledge Base

What Is Gas? | Myetherwallet Knowledge Base

The Ethereum blockchain is a network. Ether (ETH) is the fuel for that network. When you send tokens, interact with a contract, send ETH or ERC20 tokens, or do anything else on the blockchain, you must pay for that computation. That payment is calculated in gas, and gas is always paid in ETH. You are paying for the computation, regardless of whether your transaction succeeds or fails. Even if it fails, the miners must validate and execute your transaction, which takes computational power. You must pay for that computation just like you would pay for a successful transaction. You can see your transaction fee (gas limit * gas price) in ETH & USD when you search for your transaction on Etherscan.io. This is not a fee that MyEtherWallet (MEW), or any other service provider, receives. This fee is paid to the remote miners for mining transactions, putting them into blocks, and securing the blockchain. When you hear the term gas, the person speaking is either talking about: The total cost of a transaction (the transaction fee) is the Gas Limit * Gas Price. You can think of the gas limit as the total amount of liters/gallons/units of gas a car can hold. You can think of the gas price as the cost of that liter/gallon/unit of gas. With a car, its dollars (price) per gallon (unit). With Ethereum, its GWEI (price) per gas (unit). So lets say you want to fill up your 10 gallon tank. It would take 10 gallons of gas, at $2.50 each. That total would come out to $25. Likewise, fulfilling a gas limit of 21000 means filling 21000 units of gas. If each unit is set at 20 GWEI, your total would come out to 0.00042. Therefore, the total transaction fee in this scenario would be 0.00042 ETH. Sending tokens will typically take a bit more gas than sending ETH, so we generally recommend having 0 Continue reading >>

Ethereum Wallet Pays Nearly $575,000 In Fees To Transfer $25 In Eth

Ethereum Wallet Pays Nearly $575,000 In Fees To Transfer $25 In Eth

Alec Ziupsnys (@AlecZiupsnys) February 19, 2019 At first glance, the sender appears to have made a user error, incorrectly swapping the transaction fee with the full value they were attempting to send. Crypto users commonly make mistakes when sending crypto to one address to another, occasionally even sending crypto to the wrong asset type or wallet address. Its the reason it is always recommended users double- and even triple-check the receiving address before hitting send and signing a transaction. Related Reading | Crypto Analyst: Investing in Ethereum Could Be More Profitable Than Bitcoin Taking a journey down the rabbit hole of an Ethereum wallet, keen-eyed crypto users discovered that this wasnt the only transaction like this example. In just one day, the wallet address sent 0.170000000000000002 ETH or roughly $24, for a total of 3990.00000000000004 ETH in fees. The fees total nearly $575,000 at todays prices. The account either has money to burn, is driven by a malfunctioning bot, or potentially has an ulterior motive. What that motive is, though, is yet to be understood, however, crypto sleuths everywhere are on the case. Are the Strange Ethereum Transactions Tied to Money Laundering? Some speculate that the high amount of fees are being used to launder money in some way. The Twitter account for the decentralized exchange Saturn Network explains how the transaction fees could be used to wash dirty funds so they appears as honest miner income. that's money laundering. You do not broadcast this tx, you mine the block with this tx yourself. Once the block is included in the blockchain it is no longer dirty stinky stolen ether. It is honest miner income. Saturn Network (@SaturnProtocol) February 20, 2019 The transaction wasnt publicly broadcasted, which could sugge Continue reading >>

Ethereum Network Fees: Everything You Need To Know

Ethereum Network Fees: Everything You Need To Know

Ethereum Network Fees: Everything You Need to Know ETH is the money unit on the Ethereum blockchain. When you interact with a contract, send ETH or tokens, or perform any actions on the blockchain, charges are applied for all the operations. All fees are counted in gas and later are settled by ETH. The fees are paid despite the result of the activity. Even if the operation is rejected, the miners need to confirm and execute calculations. So, you have to compensate for their work, the same happens in the case of a completed transaction. The term gas is applied to estimate the final sum of fees that must be paid online to complete an operation. Gas is an internal monetary unit of the system used to conduct a transaction or smart contract. It is necessary to pay to miners, as well as to ensure the correctness of the transfer. The payment amount directly depends on the operation complexity. As a rule, this applies to smart contracts. They are more expensive than standard payments between participants. Start a smart contract and run it on the platform. The users of the crypto-coin network are aware of the fees applied for conducting a transaction. It is transferred to miners for their performance. The task of the network participants is to set the appropriate amount of payment and initiate the operation. The rate of payment directly depends on the size of the commission. The higher gas amount enables a faster period of transaction completion. GAS is the fuel for a transaction on Ethereum platform. Its similar to kilowatts for measuring electricity. To send ETH between two wallets, minimum 21000 gas is required. To launch a smart contract a higher amount of gas may be required, the final sum may vary in each separate case. It happens as the contract (program) can perform a d Continue reading >>

Crypto Currencies And Transaction Fees

Crypto Currencies And Transaction Fees

I dont use Uber very often, but I can still remember the first time I saw Surge pricing in action.It was a rainy and cold Thursday night and I was in a part of NY with little access to public transport. After consulting the app, I saw that it would cost $60 to get me home rather than the usual $20-$30. I walked to the subway. Crypto currencies have their own version of surge pricing, set by the system and its users.It is one of the many ways in which they differ from traditional payment systems like PayPal or Visa. Those take a fixed percent of the transaction. In crypto land, that price fluctuates. Want to send a bitcoin to pay for a few online transactions? You will not likely pay exactly the same amount twice. This is important, because over the last month median transaction fees for major crypto currencies have seen tremendous volatility, just like the asset prices themselves.We went back over the last 30 days, looking for peak median fees (in dollar terms) and compared those to median transaction amounts. Then we pulled what those fees look like now: December median transaction fee peak: $34. Median transaction value: $2,922 Transaction Fee Now: $5.85. Median Transaction Value: $1,582 Change: 1.2% fees (as a percentage of transaction value) at the peak to 0.4% now January median transaction fee peak: $3.14. Median transaction amount: $364 Transaction Fee Now: $0.85. Median transaction amount: $53. Change: Since transaction sizes have declined dramatically, Ethereums cost to transact is now 1.6%, higher than when nominal fees were larger ($3.17) Bitcoin Cash (excluding an anomalous 2 day window in mid January) December median transaction fee peak: $0.05. Median transaction amount: $645 Transaction Fee Now: $0.01. Median transaction amount now: $297 Change: 0.008 ba Continue reading >>

Ethereum's High Fees Have Become An Issue For Applications And Exchanges | Btcmanager

Ethereum's High Fees Have Become An Issue For Applications And Exchanges | Btcmanager

Earlier this week, Bittrex, the fourth largest cryptocurrency exchange in the global market with a $2.7 billion daily trading volume, suspended the creation of Ethereum deposit addresses due to increasing fees and network congestion. Due to incredibly high gas prices, were preventing new ETH and asset deposit addresses from being created. Existing deposit addresses will work as normal, Bittrex wrote . According to Etherscan, the Ethereum network is currently processing more than 1.3 million transactions on a daily basis. It has a daily transaction volume that is larger that of all cryptocurrencies in the global market combined, including bitcoin. Although Ethereum is a scalable blockchain network with sufficient on-chain scaling and innovative second-layer scaling solutions such as Plasma and Sharding in development, it is struggling to handle the massive increase in demand for ether. For a blockchain network, a daily transaction volume of more than one million transactions is difficult to handle, given that such a volume is unprecedented. Bitcoin , the most valuable cryptocurrency in the market, is only processing just over 400,000 transactions per day, less than 40 percent of the Ethereum network. Structurally, Ethereum was developed to handle more transactions than Bitcoin, as it has to operate as the base protocol for large-scale and commercial decentralized applications. The rise of popularity in decentralized applications like CryptoKitties , EtherDelta, and 0x has led to a congestion of the Ethereum network. The developers of Bankex, who introduced the first practical implementation of Ethereum co-founder Vitalik Buterins off-chain scaling solution Plasma, wrote in a blog post that decentralized applications that require many thousands of transactions to execute Continue reading >>

Ethereum: How Transaction Costs Are Calculated

Ethereum: How Transaction Costs Are Calculated

Basic knowledge of programming terms (variables, loops) might also come in handy. With Ethereum, given that were talking about a programming language within the protocol, its possible to be very computationally demanding with very little text or code (something which would be very cheap in the BTC-verse). Lets look at this loop, for example: This loop means for as long as i is smaller than 1000, increase it by 1 and then sum up i and j and write the result into j, then do it all again. This loop will execute 1000 times if i is 0, or more if its a negative number. To pay for this computational cost in a fair way since it has to be executed on all miners machines at once and they spend their resources and time on it the concept of gas was introduced. Gas is used to pay for the execution of these so-called smart contracts (Ethereum programs) inside the EVM. For example, i + j above is a summation operation which costs 3 gas every time its executed, so 3000 gas if executed 1000 times. To explain gas properly, lets first cover the EVM. EVM stands for Ethereum Virtual Machine. But what is a virtual machine anyway? A virtual machine is software running on a specific computer which contains another operating system completely encapsulated inside the main one. For example, a virtual machine allows you to run Windows inside Linux, Linux inside Windows, Windows on macOS like in the image below, or any other combination. We use virtual machines to separate the environment in which we do our everyday computer use from the environment we work or program in. This lets us keep viruses at bay (they have no way of breaching the virtual machine and getting to the main operating system), helps prevent infinite loops from crashing our main operating system, and holds hard-drive corruptions Continue reading >>

Eth Transaction Fees On Ethereum Soar To $30

Eth Transaction Fees On Ethereum Soar To $30

ETH Transaction Fees on Ethereum Soar to $30 The Ethereum (ETH) network still experiences random days of congestion. This led to transactions requiring significantly high fees, as much as $30. High Competition for Some Blocks Led to Exorbitant Fees Transaction fees for sending ETH rose to as high as $30, on separate anomalous blocks, users reported. The spike in fees was random and rare, with current fees returning below $0.10. 1/ Just tried to make an Ethereum transaction and suggested fees were over $40. Looks like mean block fees shot up to over $30 for some blocks earlier today. Data via @coinmetrics Realtime Network Data pic.twitter.com/cddsj4OtkE Nate Maddrey (@natemaddrey) November 22, 2019 The latest events revealed that the Ethereum network still inherently carries an economy of competition for resources, which becomes clear during periods of high activity. Collectibles, DeFi Boost Load on Ethereum There are multiple reasons that can lead to high-fee conditions, which make it almost impossible for regular users to send coins or tokens. One of the reasons was a recent slowdown in mining, as the difficulty crept up gradually due to the mining ice age feature. While expectations are that the ice age will be delayed again, ETH production may become slower, with block delays. The other reason was the recent launch of ERC-271 non-fungible tokens based on the Gods Unchained collectibles marketplace. The official Gods Unchained marketplace is NOW OPEN! Complete your dream deck, or list cards for sale inside the game client pic.twitter.com/JrJSCtKxO9 Gods Unchained (@GodsUnchained) November 22, 2019 Crypto collectibles have clogged the network in the past, especially on days of initial enthusiasm. But now, the most active smart contract is once again Tether (USDT). The Continue reading >>

Ethereum Tests 25% Capacity Increase As Network Fees Hit Bitcoin Level

Ethereum Tests 25% Capacity Increase As Network Fees Hit Bitcoin Level

Ethereum Tests 25% Capacity Increase as Network Fees Hit Bitcoin Level A network upgrade proposition appeared to boost Ether markets earlier this week as developers respond to demands. Ethereum tackles congestion with a gas limit increase Ethereum network participants are attempting to raise the networks block size as a direct response to network congestion. Gas limit on course to become 10 million per block As various parties including co-founder Vitalik Buterin confirmed this week, testing is currently underway to improve network performance and reduce transaction fees. Given the current #Ethereum network congestion we have started to test raising the block gas limit to 10M gas, mining pool Bitfly tweeted on Sept. 14. The move follows considerable upticks in Ethereum network usage, largely due to stablecoin Tether ( USDT ), which has shifted its reliance from Bitcoin via the Omni Layer to the Ethereum blockchain. According to research data from monitoring resource Coin Metrics , as of Sept. 15, Ethereum users paid almost as much in daily transaction fees as Bitcoin users: $182,899 versus $185,993, respectively. Since Sept. 1, the average Ethereum transaction fee has increased from just over $0.11 to just under $0.39, data from Bitinfocharts shows. Gas is the token, which Ethereum users pay for performing any operation on the network. A shift to 10 million gas per block is considerable, and would translate to a total capacity increase of 25%. News of the changes appeared to buoy market of Ethereums native token, Ether ( ETH ), which earlier this week put in solid gains as other cryptocurrencies tracked sideways. A sudden dip in Bitcoin ( BTC ) subsequently sent altcoin markets lower, ETH/USD still holding onto support above $200 at press time. Continue reading >>

Why Ethereum Briefly Overtook Bitcoin In Daily Transaction Fees

Why Ethereum Briefly Overtook Bitcoin In Daily Transaction Fees

Why Ethereum Briefly Overtook Bitcoin in Daily Transaction Fees Why Ethereum Briefly Overtook Bitcoin in Daily Transaction Fees Ethereum transaction fees are back on the rise and gaining parity with bitcoin transaction fees. As seen in data charts provided by blockchain analytics firm CoinMetrics, ethereum surpassed bitcoin in daily transaction fees on Sept. 21. While ethereum has since been maintaining a close parity with bitcoins daily transaction fees, bitcoin currently beats out ethereum at roughly $350,000 in fees per day. Granted, bitcoin trading volume has been experiencing a slump as of late June, falling from $1.32 million to below $300,000 across major cryptocurrency exchanges, according to data from Bitconity.org . Bitcoins market value is also tanking in recent days dropping from a high of $8,500 to below $8,000 on Thursday . However, this slump isnt expected to last forever, with many cryptocurrency day traders such as Eric Choe noting that transaction fee volumes should pick up again in coming months as trading for the asset begins to increase. I do believe this is a temporary thing, said Choe. Historically, bitcoin transaction fees have been higher. I do think this is more a temporary fixation of the markets right now. Choe added that part of the reason for a surge in ethereum transaction fees has been the recent increase in trading activity surrounding dollar-pegged stablecoin Tether (USDT). Since 2018 , USDT has been trading on ethereum, as well as on the bitcoin-based Omni Layer Protocol. Over the course of 2019, however, the ethereum version of Tether has been surpassing the Omni Protocol version by some metrics. The Ethereum version of Tether hit a new all-time high of 187,912 daily transactions on September 9th, CoinMetrics reported in a Sept. 17 n Continue reading >>

Eip-1559: Fee Market Change For Eth 1.0 Chain

Eip-1559: Fee Market Change For Eth 1.0 Chain

EIP-1559: Fee market change for ETH 1.0 chain I really think we should start discussion around this EIP. The current first auction fee market works but is extremely inefficient and a large UX barrier for adoption. This proposal introduces a fixed fee concept through the use of a MINFEE. Users can pay a premium over this if they want but in general it greatly simplifies the UX. One great benefit of this EIP is because the MINFEE is burned and must be paid in Eth, we are making sure economic abstraction does not occur on the protocol level which is extremely important for long term Eth value. One note Ill make is while the current EIP mentions Eth 1.0, we should also consider it in the Eth 2.0 implementations. Id like for this to be considered for the Istanbul fork. What are general thoughts and concerns around this? Thanks for bringing this up, I think it should get a lot more attention in light of the many efforts in the community to lower the barriers to entry for users. On board with trying to get this into Istanbul and beyond. Let me know what can been done to help. In storage price section, you described the solution of charging timely rent fees. Do users need to pay expensive timely storage fees due to price fluctuation? Is there a more predictable way to know the cost? Say, users can occupy storage proportional to the amount of ether they hold in their accounts. If I have 100 ether and total supply is 1000, I would be able to occupy 10% of the storage without any rent fees. If my balance reduces the occupied storage can be poked by other users. Do users need to pay expensive timely storage fees due to price fluctuation? In the paper (page 14 of ) I show how under full-blocks conditions, cryptocurrency price fluctuation is lower than txfee fluctuation, so denomina Continue reading >>

Ethereum On Its Knees, Fees Rise To 40 Cent, 25,000 Transactions Stuck

Ethereum On Its Knees, Fees Rise To 40 Cent, 25,000 Transactions Stuck

Ethereum on Its Knees, Fees Rise to 40 Cent, 25,000 Transactions Stuck The ethereum network is currently fully congested with 25,000 transactions stuck after hitting a ceiling of 700,000 transactions per day in the past three days. Fees have now risen to their highest level ever, at 40 cent per transaction, double the amount Vitalik Buterin, ethereums inventor, ever imagined. He says : I never would have imagined that fees would ever be allowed to rise above $0.20. They have, raising questions as to why what we are currently seeing was allowed to pass. One explanation might be that few thought the ceiling would be at 700k, with previous numbers estimating capacity at 1.3 million and even as high as 2 million. The sudden congestion, therefore, has come as a surprise, at least to us, and even more surprising was miners stating they are not raising capacity due to very high uncle rates, to the agreement of at least one ethereum developer . It seems ethereum has neglected somewhat simple, low level, optimizations, in favor of more comprehensive solutions such as Proof of Stake and Sharding . The latter especially addresses scalability very thoroughly, raising capacity by orders of magnitude, but that will take some time. While Proof of Stake might optimistically be ready by summer, but there are potential short term solutions to increase connectivity between miners, thus lowering uncle rates. As the urgency of the matter has now probably increased to top priority, such solutions may be ready in weeks, but it is unclear whether, until then, miners will really allow this situation to continue. Unlike in bitcoin, ethereum miners are actually rewarded for orphaned blocks (uncles). A temporary percentage increase, therefore, might perhaps not matter. So some miners might decide Continue reading >>

What Are The Fees For Transferring Money On The Ethereum Network?

What Are The Fees For Transferring Money On The Ethereum Network?

What are the fees for transferring money on the Ethereum Network? Fees for transfer on the Ethereum network are paid for using gas, which itself is bought using Ether. There is a standard fee of 21,000 gas for a simple value transfer (buying ETH with fiat currency, buying ETH with BTC or other crypto, or sending ETH to another address). Gas is also used for executing smart contracts, with set gas values for each type of computation or data storage, but that goes beyond what youre asking I believe. While the amount of gas for a value transfer is set at 21,000 gas, you can send more gas to get a faster transaction, and any gas not spent on the transaction will be refunded to you. The price of gas is variable and depends on network congestion and agreement among miners on what they want to charge. That said, the price of gas has been quite stable since March 2016, and has in fact declined somewhat in the past several weeks. With all of that said, the current cost for a value transfer is $0.382 or 0.00088 ETH. You can see current gas price and many other stats regarding the Ethereum network here: ETH Gas Station Continue reading >>

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