It is a well-known fact that Ethereum’s transaction fees tend to be problematic. Solving this problem without layer-two solutions will not be possible. As things currently stand, paying an average of $15.56 per ETH transaction is the new normal.
Ethereum Transaction Fees Spike Again
For quite some time now, there have been concerns over the Ethereum transaction fees. It is an issue that became apparent during the 2017 ICO craze. So many people wanted to buy tokens issued on Ethereum’s blockchain, effectively jacking up network fees. Far from an ideal situation at the time, but very little has changed ever since.
As the DeFi craze continues, there are more concerns compared to a few years ago. Overall, the Ethereum transaction fees are on the rise once again. In quite spectacular fashion, this time around. It is not uncommon to pay over $3 for a transaction on the network in recent weeks. Yesterday, however, the fees spiked to over $15.5. An interesting turn of events, although not one that most people will appreciate.
Paying over $15 for a transaction on the Ethereum network is not feasible. It doesn’t matter what one tries to achieve either. Anything taking place on this blockchain will be very expensive from a user point of view. For all of the services running on top of this blockchain, things are not looking all that great either.
The only ones benefiting are the Ethereum miners, services charging fees, and users who can earn part of those fees in other ways. A very problematic situation, but there are solutions to be used.
Layer-two Solutions are Crucial
There are a lot of ways to address the current Ethereum transaction fees. For the end user, there is not much that can be done, other than lowering the settings and waiting hours, or days, for transactions to go through. On the project side of things, several layer-two solutions can be implemented. Options to explore include zkRollups – either directly or through LoopRing – as well as sharding and OmiseGo’s technology,
To those replying with "gas fees are too high", my answer to that is "well then more people should be accepting payments directly through zksync/loopring/OMG". Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to… use it. https://t.co/J2KMJyLKv6
— vitalik.eth (@VitalikButerin) September 1, 2020
A lot of the layer-two solutions have indicated their scaling potential is enormous. Reaching a throughput of 2,500 TPS is not impossible. Through solutions like these, the Ethereum transaction fees issue can be circumvented.
It is now up to project owners and service providers to natively integrate these technologies. If and when that will happen exactly, is a different matter. This process will take months, if not years, to be completed.