Why it is important to fight for transaction fees that are low or zero
Transaction fees were rampant during the wild bull run. They reached eye-watering heights of $196.638 in May on Ethereum Blockchain, rendering the network unusable to most everyday users.
Similar issues plagued the Bitcoin blockchain in 2017. The result was a record breaking $300.331. Proof-of-work networks can become congested when there is high demand. This prompts miners to prioritize transactions that have the highest fees.
The problem is that high fees make it difficult to use crypto’s most powerful use case — peer-to-peer transfer. Millions of potential users won’t be able to benefit from this technology if sending money from A to B costs too much.
This is something that crypto industry heavyweights know. Vitalik Buterin, co-founder of Ethereum, warned over the summer that single transactions could “potentially take up people’s whole daily income,” especially in developing countries.
Before The Merge, Ethereum transactions were typically priced between $1 and $20. He argued that this is too expensive for billions of people all over the globe. The average daily take-home pay is $16 in Mongolia and $4 in Zambia.
The focus of bear markets shifts from growth to operational improvement — and now blockchain developers are working together to lower costs. This will allow crypto to reach its full potential, especially for vital use cases like remittances.
Rollups are a way to bundle transactions and settle them outside of Layer 1 networks. This is not only cheaper, but also faster. Data can be sent back to the mainnet later.
Just like trying to stuff more clothes in a suitcase. Data compression is also being given more importance — making sure that every transaction takes up less space. These concepts, along with sharding, can be very encouraging.
Trading platforms, which are crucial in connecting with crypto enthusiasts directly, also play a part. Facilitating zero-fee transfer can make it possible to provide a seamless experience for all customers. They can transfer their digital assets without worrying about the cost.
It’s all about making things intuitive
HitBTC allows forward transactions to be made with zero fees. It offers an intuitive and user-friendly wallet for Android and iOS that is available for both Android and iOS. This allows users to make the transition from fiat to cryptocurrency quickly and easily.
HitBTC users can send crypto free of cost to their family, friends and business associates if they have an account.
This could be a game-changer. According to data from the World Bank, the average cost of sending $200 across international borders was 6% in quarter four of 2021. For countries that rely on foreign workers to send money home to their families, $12 is a significant loss.
Zero-fee transfer has the potential to revolutionize the financial industry by opening up financial services and saving consumers billions. HitBTC also claims to have the lowest fees when crypto is bought and sold.
This is only one piece of the puzzle. The exchange shows that there are many more pieces to be made.
Cryptography: How to decode it
Many crypto enthusiasts will recall the first time they attempted to send Bitcoin from one address. With a wallet that is a long string containing letters and numbers, it’s difficult to avoid typos. There are also fears that the crypto could disappear forever.
It doesn’t have be like this. Web3 is already seeing popular human-readable domains like.eth or.crypto. This is a positive development, but HitBTC believes that there should be more options.
HitBTC allows customers to send digital assets by email, using anonymous links, or by creating a user ID. This helps to reduce the hassle of sending money. There are options to suit everyone, regardless of their preference for privacy or simplicity.
HitBTC’s simple approach to sending and receiving money has been enhanced by an intuitive interface that allows for quick transactions.
Crypto can be daunting for those who don’t know the basics of cryptography. But HitBTC shows that this doesn’t have be the case. It’s also addressing the barriers to mass adoption by introducing zero-fee transfer.
HitBTC’s cryptocurrency wallet is designed to be an all-in-one solution for both beginners and professionals. Assets can be protected with biometrics, Face ID, or two-factor authentication. They can also be managed on multiple devices. Innovative ways to protect funds from fraudsters are available. A dedicated customer support team is always available to help in the event of an emergency.
There are many more features on the horizon. This is all part of an ambitious effort to make crypto less frightening for novices… and more practical for veterans.
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