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Ethereum Vs Bitcoin Transaction Fee

Ethereum Transaction Fee - Crypto Mining Blog

Ethereum Transaction Fee - Crypto Mining Blog

All About BTC, LTC, ETH mining as well as other alternative crypto currencies How To Save on Taxes and Time When Transferring Ethereum (ETH) When you are transferring a crypto currency from one address to another you need to pay a fee for the transfer to happen. With crypto coins like Bitcoin the fee is paid depending on the amount of the data that need to be included in a block for the transaction to happen, it is a single fee per Kilobyte of data that you have control over. Increasing the fee can result in faster inclusion in a block and faster processing of your transaction to get included in the Blockchain and the coins to move to the new address. Decreasing the fee from the recommended amount will usually result in slower confirmation time, but if the fee is too little your transfer may actually never happen. If the fee is too low and the transaction is taking too long to confirm you might try to Cancel Unconfirmed Bitcoin Transactions if you have used a local wallet like Bitcoin Core for example. With Ethereum (ETH) the whole thing works a bit differently, though the general principle of paying a fee for transactions is pretty much the same. When you send Ethereum, transfer tokens, interact with smart contracts and so on you need to pay a fee in Gas, though the actual fee is paid in ETH anyway. With Ethereum you always pay a fee, even if your interaction with the blockchain is not successful or if it is successful. Here is an example, if you send some Ethereum coins to a smart contract and doing so with not enough Gas, the coins will not be sent, but you still will have to pay the fee and it will be deducted from your balance. With Bitcoin for comparison an unsuccessful transaction will not result in you still paying the transaction fees. The total TX (transactio Continue reading >>

Bought Your First Bitcoin Or Ether? Brace For The Fees

Bought Your First Bitcoin Or Ether? Brace For The Fees

Bought Your First Bitcoin or Ether? Brace for the Fees Dec 18, 2017 at 11:30 UTC|UpdatedDec 19, 2017 at 13:03 UTC I sent $25 of Bitcoin from one address (in Coinbase) to another (Kraken). -- Kristian Freeman (@imkmf) December 8, 2017 Ready to send your first bitcoin?That will be $26 please... Sure, that's on the high end of what you might pay to use the bitcoin blockchain today, but if you're new to the world of cryptocurrencies (and haven't invested that much), we understand seeing such a sky-high sum might be a shock. (Sorry, Kristian!) Despite what you might have heard about the "money of the future," the fact is bitcoin (and other cryptocurrencies) are both expensive - and experimental - today. But while this might not be what you're used to (or even what you signed up for when purchasing), looking at the reasons behind blockchain costs can help you understand the technology, its weaknesses and where the ecosystem needs more dedicated minds to improve. OK, so what's with fees in the first place? To start, you're probably thinking this money is all going somewhere. And it is, just not a single place. When you send a cryptocurrency transaction, you're paying for it to be included on the protocol's blockchain, which you can think of as something an official record of every token on the network ever spent (whether it's bitcoin, ether or something more exotic). Rather than holding this at a bank or a credit card firm, this ledger is distributed. This means that should any one computer (or group of computers) go down, the network still has a copy showing that you own your asset. The bad news is you have to pay all those computers to process it. Here, we'll introduce you to the first new person on our journey, the miner (or validator, depending on your network). You don't Continue reading >>

What Is The Gas In Ethereum?

What Is The Gas In Ethereum?

Gas is the internal pricing for running a transaction or contract in Ethereum . At the time of writing before the launch of Frontier it is fixed to 10 Szabo, which is about 1/100,000 of an Ether.It's to decouple the unit of Ether (ETH) and its market value from the unit to measure computational use (gas). Thus, a miner can decide to increase or decrease the use of gas according to its needs, while if need be, the price of gas can be increased or decreased accordingly, avoiding a situation in which an increase in the price of ETH would cause the need to change all gas prices. This is also a response to the discussion in bitcoin about fees structure. The gas system is not very different from the use of Kw for measuring electricity home use. One difference from actual energy market is that the originator of the transaction sets the price of gas, to which the miner can or not accept, this causes an emergence of a market around gas. You can see the evolution of the price of gas here: With Ethereum there is a blocksize limit too so youre paying for premium space in the next block just like with Bitcoin . With Bitcoin miners prioritise transaction with the highest mining fees. The same is true of Ethereum where miners are free to ignore transactions whose gas price limit is too low. The gas price per transaction or contract is set up to deal with the Turing Complete nature of Ethereum and its EVM (Ethereum Virtual Machine Code) the idea being to limit infinite loops. So for example 10 Szabo, or 0.00001 Ether or 1 Gas can execute a line of code or some command. If there is not enough Ether in the account to perform the transaction or message then it is considered invalid. The idea is to stop denial of service attacks from infinite loops, encourage efficiency in the code and to Continue reading >>

Bitcoin Vs. Litecoin Vs. Ethereum: The Difference In The Cryptocurrencies | Inverse

Bitcoin Vs. Litecoin Vs. Ethereum: The Difference In The Cryptocurrencies | Inverse

Here are the key differences between the three. The original. First outlined in a 2008 white paper published to the P2P Foundations website by a mysterious figure known only as Satoshi Nakamoto, Bitcoin introduced a number of key ideas that have underpinned several other cryptocurrencies since. This includes the blockchain , the public ledger that enables communities to share a decentralized cryptocurrency without fear of doubling over on transactions. In terms of price, Bitcoin has exploded over the past few months, with a price of $2,000 in May skyrocketing to almost $8,000 in November, and reaching $14,000 in December . Introduced in 2013 by then 19-year-old Vitalik Buterin, on the surface Ethereum seems a lot like Bitcoin. Its better to think about it as a software platform, though. One where decentralized apps or dApps use the blockchain to undertake transactions. At the time of writing, one ether is worth $676.63. Ethereum can run what are called smart contracts, which are best thought of as simple instructions that can move the ether cryptocurrency around. Its a bit like an instruction to the bank, except its instant and handled by computers . This allows for ambitious sets of instructions; insurance firm AXA has experimented with smart contracts that trigger a payment request if a flight is delayed by two or more hours. Created by Charlie Lee, a former director of engineering at Coinbase, Litecoin is all about transfer speed improvements. At the time of writing, one litecoin is worth $321.20. Bitcoin uses the SHA-256 algorithm to mine new coins, leading to giant setups that use tons of specially designed mining hardware to crank out more coins. Litecoin, on the other hand, uses Scrypt, which demands memory instead of processor resources. That stops these giant Continue reading >>

Crypto Transaction Fees For Beginners

Crypto Transaction Fees For Beginners

Obligatory Disclaimer: To modify a quote from Tim Ferris, I am NOT a financial advisor, and none of this advice should be taken without speaking to a qualified professional first. Also, my results [are most likely] due to pure luck and zero skill. Butthis is working for me. So, youve gotten your hands on your first crypto token. It was a good bit of work. You learned a lot. Maybe you had help from an awesome step-by-step guide , or maybe you figured it out for yourself. Either way, youre a little richer (or a little poorer), and you want to get into the crypto game even deeper. Not so fast! Before you become a seasoned crypto-investor, there is one thing you need to understand in and out: transaction fees. Two of Warren Buffetts most famous investing rules are: 1) Never lose money, and 2) Never forget rule number one. After a crytpo company uses up its hard-earned initial coin offering (ICO) millions, how do they continue to make money? The answer is simple: transaction fees. These fees vary from token to token. Some are more expensive (as of the beginning of June, the average transaction fee for Bitcoin is around $4 !) and some are extremely cheap (DASH and Litecoin transactions fees in June are averaging $0.11 and $0.14 respectively ). The important thing to realize here however, is the real meaning of transaction fee. Lets say that you hold some SiaCoin (SC) on your favorite exchange (mine happens to be Bittrex). You decide you want to convert this SC to DigiByte (DGB), because youve seen it mentioned a lot on Twitter. The steps to do this conversion could look something like this: Withdraw your SC from Bittrex, and send it to ShapeShift (pay a Bittrex withdrawal fee) Convert SC to DGB through ShapeShift (pay a SiaCoin miner fee, and a DGB miner fee) Send your DGB b Continue reading >>

The Flippening: Ethereum Vs.bitcoin

The Flippening: Ethereum Vs.bitcoin

Cryptocurrency Enthusiast. Entrepreneur. MIT Sloan Class of 2020. If youve been in the cryptocurrency space for more than a month, chances are youve come across the term Flippening. As silly as it may be to pronounce, the term refers to the foretold event in the possible future that Bitcoin will be dethroned by another cryptocurrency. One of the major contenders for the championship belt has been Ethereum. In the current midst of the ongoing Bitcoin Crash, this legend is inching toward a possible reality. A couple of weeks ago, I published an article about the 9 Rules of Crypto Trading that focused on rules that Miles follows. Hes one of the founders of Pure Investments , which is a Discord community that focus on cryptocurrency signals. Recently, he published a video on the official Pure Investments YouTube Channel regarding Ethereum and the Flippening. Take a look at the full Ethereum video posted by Miles from Pure Investments Miles is a strong believer in the Flippening. While Bitcoin sustains its current dominance, Miles believes that Ethereums strong value proposition will eventually outshine the current champion with strong reason. One of the major points that Miles argues is the First to Market Dominance claim with Bitcoin. Analogously, we have seen empires like Best Buy and BlockBuster crippled by innovative competition from the likes of Amazon and NetFlix. Apart from this, Miles also argues that Blockbuster: Rent 6, get 1 free; NetFlix: Get all you want for $10/month. Mining Ethereum blocks takes about 14 seconds per confirmation compared to Bitcoins 10 minutes. Bitcoin, which is a behemoth that is becoming very comfortable on its throne, cannot offer the blockchain confirmation speed (well, arguably it can in the future with Lightning Network) of Ethereum. I Continue reading >>

Ethereum Gas And Transaction Fees Explained!

Ethereum Gas And Transaction Fees Explained!

Ethereum Gas and Transaction Fees Explained! What is mining and whats the difference between PoW and PoS mining? Basic knowledge of programming terms (variables, loops) might also come in handy. When sending a Bitcoin transaction, its fee is proportionate to its size. The more inputs and outputs , the more expensive it is. Add to that the factor of pending transactions , and transaction fees can skyrocket based on those two factors alone. 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 it's 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 it's executed, so 3000 gas if executed 1000 times. To explain gas properly, let's 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. A virtual machine allows you to, for example, run Windows inside of Linux, Linux inside of Windows, Windows on OS X like in the image below, or any other comb Continue reading >>

Til: Bitcoin Transaction Fees Vs. Ethereum Transaction Fees

Til: Bitcoin Transaction Fees Vs. Ethereum Transaction Fees

Bitcoin transaction fees work quite a deal different from Ethereum transaction fees. Both PoW coins transact faster when the associated fee is higher because miners are more likely to process a transaction. In Bitcoin, you basically pay a fee for the amount of bytes your transaction adds to the blockchain. If a transaction does not get processed by miners, the entire transaction is cancelled, no funds are withdrawn and no fees are paid. On Ethereum on the other hand, you pay a fee for miners executing a smart contract. This takes computing time. If you don't pay enough per GAS, miners might take long to pick up your transaction. If you don't supply enough GAS for each transaction the smart contract basically takes more computing power than you are willing to pay for. If a transaction block is found before your smart contract finished computing or your transaction is not included in the mined block, the network will try again to include your transaction. If your transaction runs out of GAS because of the calculations required for the smart contract, it gets cancelled at the expense of the GAS spent to calculate the smart contract and its outcome. While Bitcoin basically refunds failed transactions, Ethereum will not execute the outcome of the smart contract but it sure enough will keep the fee associated with the failed transaction. In the end, this means that you have to pay up more if you want to repeat a failed transaction by either raising the price per GAS and or the amount of GAS you are willing to pay for. Please leave a comment down below if this was helpful and please also leave a comment if it wasn't! Downvoting a post can decrease pending rewards and make it less visible. Common reasons: Continue reading >>

Bitcoin Vs Ethereum Transaction Throughput And Fees

Bitcoin Vs Ethereum Transaction Throughput And Fees

Bitcoin vs Ethereum Transaction Throughput and Fees Bitcoin vs Ethereum Transaction Throughput and Fees Cryptocurrency enthusiasts often like to compare Bitcoin and Ethereum. These are the two most popular cryptocurrencies and Ethereum is even attempting to take Bitcoins place as top cryptocurrency. Comparing some aspects showthe strengths and weaknesses of either asset. A few of these arenetwork transaction fees and associated transaction throughput. Currently,Ethereum processes more transactions at lower fees thanBitcoin. Ethereum Beats Bitcoin In Transaction Throughput Ethereum is younger than Bitcoin, so looking at things such as the total of network transactions may seem inconclusive. After all, one may assume Ethereum has far fewer transactions compared to Bitcoin. That is no longer the case andit appears the tide is shifting in favor of Ethereum. The statistics seem toindicate the Ethereum network processed close to three times the number of transactions compared to Bitcoin on July 4th. A total of 15.16 million gas units have been processed on the network. Keep in mind the average transaction when related to Bitcoin would use about 21,000 gas units. Quick calculations which need to be taken with a grain of salt show us July 4th saw 720,000 Bitcoin-sized transactions on the Ethereum blockchain. That is a substantial amount. The Bitcoin network processed a total of 255,483 transactions on the same day. That puts the Ethereum network well ahead of Bitcoin. This is an interesting turn of events, but does not necessarily mean anything monumental is taking place. Fluctuations are bound to happen in any market. Some days different coins will outperform another one. The average network transaction fee for Bitcoin on July 4th was higher compared to Ethereums transaction Continue reading >>

How Do Ethereum's Transaction Fees Compare To Bitcoin?

How Do Ethereum's Transaction Fees Compare To Bitcoin?

How do Ethereum's transaction fees compare to Bitcoin? Ethereum has faster transactions than the 10 minutes of standard bitcoin protocol.How do the transaction fees compare at the moment if you translate the price into a comparable currency like dollars or euros?Long-term how are they likely to compare? etherdelta is charging 58gwei ($6) per transaction right now... is that legit? valuedCustomer Dec 9 at 5:22 Every computation on the Ethereum network cost gas, so do value transfers like on the bitcoin blockchain. Every computational step, or OPCODE requires a specific amount of gas (which is hardcoded). You pay for gas using ether. To determine the fee you pay you calculate: For example a simple value transfer cost 21000 gas, the current gas price is dynamically set by users and miners and is currently ~0.00000005 ether, so the value transaction would cost ~0.00105 ether or $0.001 to $0.002 USD at current prices. Current BTC transaction fees vary anywhere from $0.01 to $0.09 USD Users can set the gas price they are willing to pay and and miners can set the minimum gas price they are willing to accept. This creates a dynamic market, which allows ethers "fee" to be dynamic and adopt to ether price swings. I don't think this answer tells me whether I can expect the fees payed on ethereum to be higher or lower than in bitcoin when converted into dollars. Christian Jan 23 '16 at 21:57 In short, in Ethereum the fees are paid in gas and calculated based on contract code execution complexity, in bitcoin the're based solely on transaction size. See the these Ethereum gas fees tables ( table1 , table2 ) for the complete gas costs for executing contract code. The fee for a value transfer is 21000 gas, you need to check the current gas price on the Ethereum Stats and then multiply Continue reading >>

Blockchain: A Very Short History Of Ethereum Everyone Should Read

Blockchain: A Very Short History Of Ethereum Everyone Should Read

Blockchain: A Very Short History Of Ethereum Everyone Should Read Opinions expressed by Forbes Contributors are their own. Even those who are not familiar with blockchain are likely to have heard about Bitcoin, the cryptocurrency and payment system that uses the technology. Another platform called Ethereum, that also uses blockchain, is predicted by some experts to overtake Bitcoin this year. Ethereum is an open-source public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without a third party. There are two accounts available through Ethereum: externally owned accounts (controlled by private keys influenced by human users) and contract accounts. Ethereum allows developers to deploy all kinds of decentralized apps. Even though Bitcoin remains the most popular cryptocurrency, its Ethereums aggressive growth that has many speculating it will soon overtake Bitcoin in usage. While there are many similarities between Ethereum and Bitcoin, there are also significant differences. Here are a few : Bitcoin trades in cryptocurrency, while Ethereum offers several methods of exchange, including cryptocurrency (Ethereums is called Ether), smart contracts and the Ethereum Virtual Machine (EVM). They are based on different security protocols : Ethereum uses a "proof of stake" system as opposed the "proof of work" system used by Bitcoin. Bitcoin allows only public (permissionless or censor-proof) transactions to take place; Ethereum allows both permissioned and permissionless transactions. The average block time for Ethereum is significantly less than Bitcoins: 12 seconds versus 10 minutes. This translates into more block confirmations, which allows Ethereums miners to complete more blocks and receive more Ether. It is estimat Continue reading >>

Money Vs. Cryptocurrency, The Real Costs (part1)

Money Vs. Cryptocurrency, The Real Costs (part1)

Director of Energy at ConsenSys and Cofounder of Gridplus.io Building the future of energy on blockchain Money vs. Cryptocurrency, The Real Costs (part1) Bitcoin, Ethereum, and Blockchain have become part of the technology hype cycle in 2017. Bitcoin continues to set all-time highs day after day, while Ethereum promises to use Blockchain to disrupt almost all financial instruments and business processes. These powerful peer-to-peer systems claim to efficiently dis-intermediate low value-added counter-parties, allowing more money to find its way to individuals creating value. The digitalization of money through cryptocurrencies is supposed to facilitate a new world of instantaneous cheap transactions between all humans and all machines. But how do these systems currently stack up against money, the most basic use case they are supposed to disrupt? To make this assessment, we first need to understand the current money system and the costs associated with it. The two intrinsic costs associated with currency that I will look at here are transaction costs, and the cost of inflation. In 2015 cash usage represented 2.35 trillion USD while checks, credit/debit cards, and ACH transfers represented 178 trillion. Shown below is a chart breaking down the composition of non-cash payments 2015. Not surprisingly credit and debit cards are used in the greatest number of transactions (103.3 billion), while representing the smallest amount of value ($5.72 trillion). Therefore, to begin our discussion of the cost of money we will look at credit card payments, how they work, and the costs associated with them. Although many in the crypto community like to talk about the fact that credit card transactions can cost the merchant anywhere from 23% and that cryptocurrencies can disrupt them, w Continue reading >>

Bitcoin Cash Transaction Fees Are More Expensive Than Ethereums Already

Bitcoin Cash Transaction Fees Are More Expensive Than Ethereums Already

Bitcoin Cash Transaction Fees are More Expensive Than Ethereums Already The term Flippening is thrown around quite loosely as of late. Many people expect Bitcoin Cash to overtake Ethereum by market cap and remain in that position The earlier attempt got rejected and the BCH price crashed pretty hard as a result. To make matters worse, the BCH fees are higher than the Ethereum fees right now. An interesting development, to say the very least. Litecoin still remains a cheaper option than both. Transaction fees are critical to any cryptocurrency ecosystem. If the costs are too high to send transactions, users will look for alternatives. Bitcoin Cash is clearly cheaper than Bitcoin right now. However, that doesnt mean BCH is better than other currencies by definition. In fact, it is the more expensive altcoin when compared to Ethereum and Litecoin right now. This is another interesting flippening aspect, to say the very least. Bitcoin Cash Transactions get More Expensive With the BCH fees outweighing those of Ethereum, an interesting situation is created. One has to acknowledge ETH fees have been pretty high over the past few months in comparison. With more transactions on the Bitcoin Cash network right now, this unfavorable change was only a matter of time. Considering how the blocks arent even full yet, that is pretty worrisome. Things will only grow worse from here on out, that much is rather evident. Although the difference between BCH and ETH in fees is small, it is significant. How this situation will evolve in the coming weeks, remains to be determined. According to Bitinfocharts , the average ETH fee is now $0.181. Bitcoin Cash, on the other hand, has a cost of $0.2. Both are a lot lower compared to Bitcoin, which is only to be expected. However, it shows Bitcoin C Continue reading >>

Big Transaction Fees Are A Problem For Bitcoin But There Could Be A Solution

Big Transaction Fees Are A Problem For Bitcoin But There Could Be A Solution

Bitcoin transaction fees are proving to be profitable for so-called bitcoin "miners". Miners work out complex cryptographic puzzles to add transactions to the blockchain, a decentralized record of all bitcoin transactions. They are paid in bitcoin in return for their services. On Monday, the total value of all transaction fees paid to miners hit an astronomical sum above $11 million on that one day, according to Blockchain.com data. A debate has been brewing among the bitcoin community surrounding transaction times and fees. Right now it takes an average time of 78 minutes to confirm a bitcoin transaction, according to Blockchain.com. But on Sunday the average time was as high as 1,188 minutes. Slow transaction speeds and fees has led to a number of splits in the original blockchain. In August, the blockchain was forced to split in two a phenomenon known as "hard fork." This led to the creation of a bitcoin spinoff called bitcoin cash. Another fork occurred in October , spawning yet another digital asset called bitcoin gold. These bitcoin offshoots have spawned because some within the bitcoin community believe that the size of blocks records of transactions on the network should be increased. A proposed update known as SegWit2x would have increased the block size from one to two megabytes, but this was dropped last month. Separating bitcoin from its altcoin rivals The boss of blockchain firm Ripple, whose digital currency XRP is the fourth-largest by market value, is skeptical about the use of bitcoin for payments and transfers. "I don't think bitcoin is well-positioned to solve the payments problem," Ripple's CEO Brad Garlinghouse told CNBC earlier this year. Garlinghouse said that his firm's cryptocurrency was "enabling transactions in seconds," adding that the cost Continue reading >>

Network Transaction Fees Crypto Voices

Network Transaction Fees Crypto Voices

Green area: Total transaction fees per day, in US$; Blue line: Average transaction fee, in US$. Green area: Total transaction fees per day, in coins; Blue line: Average transaction fee, per byte of data accepted into each block, in coin's smallest denomination (except in Ethereum's case). Note that Ethereum's total network "transaction fees" are calculated by a two-step process. First, you need to understand the "gas"price. This is an extremely small figure, intended to be decoupled from ether's market price. Here we are measuring it in szabos, which amounts to 0.000001 ether per 1 szabo. Ethereum's denominations actually go much smaller than this, down to something called wei. One ether would amount to 1e18 wei; or a 1 with 18 zeros behind it. In any event, after the average gas price is understood, one would need to multiply this price by the total amount of gas units purchased in each block. Users must purchase any number of "gas" units to run different computations and contracts on Ethereum's network. The market history of both these figures is graphed below. Here, we can also see the dynamic limit that Ethereum places on gas units which can be purchased in each block. This limit is set dynamically by miners. Both are reflected in the right axis. As discussed in the network cost / block reward section, the "block reward"is essentially a revenue item for miners, and a cost item for the rest of us. Remember, it usually compromises both inflation (newly "mined" coins) and some form of transaction fees. This section isolates and graphs transaction fees only. Typically, miners choose which transactions they want to include in each block, based on how high their transaction fees are. The higher the transaction fee, the more likely your transaction is to be included and e Continue reading >>

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