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

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

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by Max Nevskyi

3 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.

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