• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M
Vitalik Buterin notes that cryptocurrencies increase the amount of commissions for transactions

Vitalik Buterin notes that cryptocurrencies increase the amount of commissions for transactions

user avatar

by Max Nevskyi

2 years ago


According to former Ethereum advisor Steven Nerayoff, increased usage of the Ethereum network inevitably leads to increased fees.

This expert argues that it is not ordinary users who ultimately benefit from the increase in commissions, but rather large participants, especially if control over ownership and mining is concentrated, as is the case in the Ethereum network.

Referring to part of the official Ethereum document, Nerayoff notes that according to the legal opinion of the Ethereum ICO, the standard cost of gas usually ranges from $0.01 to $0.02. By comparing this figure with current commissions, users can conclude who actually benefits from increased gas costs in the blockchain.

Some cryptocurrency users share his concerns and suspect that the Ethereum network could become the object of manipulation by "masked whales". Earlier, one of the co-founders of Ethereum, Vitalik Buterin, confirmed that certain participants in the network can influence the functionality of the protocol with the help of commissions.

In the new video, Vitalik Buterin emphasizes that in addition to shutting down Ethereum users, one should be careful about the possibility of seizing control over the management of the network. By capture, he understands a situation in which a small group of people acquires sufficient influence in decision-making to implement their own concept of work, different from the vision of the community.

Buterin describes the actions of such participants as a type of 51% attack, in which they can restrict transactions, except for those accompanied by high fees. As a result, the blockchain continues to function, but users are forced to pay high fees, which benefits those who censor transactions.

While the prospect of switching from the Proof-of-Work consensus algorithm to Proof-of-Stake was previously discussed in order to solve the problems of centralization among miners and validators, as well as increase network scalability and reduce commissions, so far none of these planned changes have been implemented, and this arouses interest in the further development of the blockchain Ethereum.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Ripple's Payment Options Transform Treasury Strategies

chest

Ripple is integrating payment options into treasury platforms, allowing treasurers to choose between traditional and blockchain-based payment methods.

user avatarRajesh Kumar

Corporate Treasury Departments Embrace Blockchain and Stablecoins

chest

Corporate treasury departments are increasingly evaluating blockchain technology and stablecoins for faster payment settlements and improved liquidity management.

user avatarMiguel Rodriguez

Chances of Sam Bankman-Fried Pardon Decline After Parents' Interview

chest

The chances of former FTX CEO Sam Bankman-Fried receiving a presidential pardon have diminished following a recent interview with his parents, Joseph Bankman and Barbara Fried.

user avatarLuis Flores

David Sacks Concludes His Role as Crypto and AI Czar

chest

David Sacks has concluded his 130-day term as the crypto and AI czar under President Trump, transitioning to co-chair of the President's Council of Advisors on Science and Technology.

user avatarArif Mukhtar

Teenagers Charged in Violent Home Invasion Linked to Bitcoin Robbery

chest

Two California teenagers have been charged with multiple felonies after a violent home invasion in Scottsdale, Arizona, where they attempted to steal $66 million in cryptocurrency.

user avatarMaria Gutierrez

Aave Faces Governance Challenges Amid Community Disagreements

chest

Aave is facing significant governance challenges due to disagreements among core developers and community members regarding the future direction of the protocol.

user avatarDavid Robinson

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.