[Taklimakan Blog] Why Ethereum’s Success Could Be a Pyrrhic Victory?
Ethereum (ETH) is currently the most popular blockchain network. At first glance, this is great news, but there is a catch.
When Ethereum (ETH) rose sharply and gas prices hit records, transactions became too expensive. People are not ready to pay so much to confirm the transaction and start looking for alternative solutions in other networks.
So if Ethereum is successful and people are using it, how can it hurt its spread?
To begin with, let’s recall how transactions based on the Ethereum network work, and figure out why to pay for each operation on the blockchain.
Why are there fees for transactions?
There are two fundamental reasons for this: commissions help to avoid useless transactions, and also go to pay the miners who confirm them. If everything were free, people would flood the network with millions of useless transactions and crash it very quickly, since it would simply be unprofitable for miners to confirm them.