Ethereum transaction fees spike, affecting dapp user onboarding
As we all know the market is changing. The DeFi bubble has led to insane Ethereum transaction fees.
But it isn’t just decentralized exchanges that are being hit by this spike in GAS prices. Decentralised applications building within the Ethereum ecosystem is having to go back to the drawing board.
As you can see in the chart above, you can see that this a problem that is here to stay.
Take for example the impact of a $3 transaction fee with a median expected top-up value between $3 – $10. Using a dex would incur an even higher transaction fee. So in some cases transaction fee can be as big as topup value, such situation is a point of friction in our user onboarding process.
In the long term, there will be widespread and commonly accepted layer two solutions for the decentralised community that will solve for these spikes in the transaction fees on Ethereum. This could be ETH 2.0 or a widely adopted second layer solution based on payment channels.
But this isn’t the current case. As a team committed to user onboarding, we put serious time and thinking into how we can alleviate this friction point for users within Mysterium Network.
What about other blockchains?
We have taken time to consider other blockchains and analyse if this is a solution to the transaction fee problem. There are several EVM compatible solutions such as RSK, Tron, TomoChain, just to name a few.
In case you were wondering…
There are endless solutions which are just as promising when it comes to cheap and fast transactions, for example, EOS, Liquid, Stellar, Nano, Holo, and the list goes on…
Here are some of our reasons for our continued commitment to the Ethereum blockchain:
- The Ethereum ecosystem holds a large community of users who know how to use Ethereum wallets
- Integrations with DEXes such as Uniswap, which will allow for ETH, DAI and other ERC 20 token holder communities to easily pay for VPN services within Mysterium Network
- Proven security model
Big and growing developer community. As builders, we want to be amongst our own.
But does this mean we have to live with the high transaction fees? Not necessarily - Introducing “Mysterium Pro”
How does Mysterium Pro solve the transaction fee problem?
The only place where these high transaction fees touch Mysterium Network’s service offering is in the top-up function. All other transactions are happening in our own, scalable micropayment channels based L2 solution. Find out more here:
This is the moment where end-users top-up their payment channel so they can begin to pay for VPN services within the network.
With Mysterium Pro, users can circumvent high transaction fees by choosing to top-up their payment channels with BTC, BCH and other low transaction fee tokens.
BTC transaction fees: https://privacypros.io/tools/bitcoinfees/
BCH transaction fee: https://bitinfocharts.com/comparison/bitcoin%20cash-transactionfees.html
Mysterium Pro will also include a solution which batches end-users tokens before converting them to MYST, therefore spreading the cost of transaction fees over users. This allow means mucheven cheaper top-ups for Mysterium Pro users.
Mysterium Pro launches after our mainnet release. See our latest update on MYST token migration.
Want to get involved in Mysterium Network today?
We’re building towards Ethereum mainnet. This is when peer to peer payments within Mysterium Network become a reality. As part of this, we are recruiting testers for our beta net, a place where we will work with our community to battle test our code.
Here’s a snapshot of our progressive migration onto Ethereum mainnet:
If you’re interested in getting involved, sign up here!