Will competitors defeat ETH due to ever-increasing gas fees?

Abiky

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Quote from: PrivacyG on February 17, 2022, 07:54:55 AM

The longer Ethereum's updates will take, the fewer users it will have. I am surprised it has not lost momentum yet after so many months of high fees. Who is still using Ethereum on-chain at this point? The average user will not afford to pay the fees you get to pay for a basic transaction.

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Whales may be the only ones that will end up using Ethereum in the long run, as gas fees become too high to bear. The average person will be forced to use an alternative chain or a Layer-Two scaling solution (which brings friction) in order to save as much money from fees as possible. There's a reason why the competition gained traction over the past few years. If ETH fees weren't that high, competing chains wouldn't be within the top ranks in market cap today.

ETH developers should focus more on remediating the issue within the short term instead of stalling the public with the PoS upgrade. It's been years since PoS was announced, yet it's the day where it hasn't materialized. There are rumors that ETH will switch to PoS this year, but there's nothing stopping developers from delaying the upgrade again. People are getting tired of these "games" so the longer it takes for ETH to scale, the faster it'll reach its demise. Who knows what will be of ETH in the future? Just my opinion

PrivacyG

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Quote from: Abiky on February 17, 2022, 07:43:38 AM

Most projects prefer ETH because it's the oldest smart contract platform in the world. With a solid ecosystem of dApps, tokens, and services around it, ETH is too hard to ignore by mainstream developers and individuals alike. I guess no competitor can beat Ethereum no matter how fast and cheap they claim to be. Decentralization and censorship-resistance is what matters above all else. With ETH's PoS upgrade on the way, the main Ethereum blockchain will only become better over time. This will greatly solidify ETH's position on the market.

At least, gas fees won't remain high on ETH forever. Things would've been worse if fees kept rising without no indication of going down soon. As long as developers establish a balance between scalability and decentralization, there should be nothing to worry about. Just my thoughts Grin

The longer Ethereum's updates will take, the fewer users it will have. I am surprised it has not lost momentum yet after so many months of high fees. Who is still using Ethereum on-chain at this point? The average user will not afford to pay the fees you get to pay for a basic transaction.

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Regards,
PrivacyG

Abiky

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Quote from: jaberwock on February 09, 2022, 05:28:37 PM

Unfortunately (and I say unfortunately because I like other coins too) ETH is not only there because of the first mover advantage. It is there because projects still prefer ETH and mainly ERC20 to be published. That is the big reason why ETH is still at second spot. Doesn't mean that it will never lose that position, we have seen plenty of projects lose that position but that doesn't change the fact that we are talking about something that is totally different reasoning then people expect.

As long as new projects keep getting listed in ETH and they keep getting popular, other projects will want to get listed there to be popular as well and that is the main reason why it is second. If projects slowly start to get listed in other networks, which already started but not growing fast enough, then we will see ETH getting to a lower rank one day.

Most projects prefer ETH because it's the oldest smart contract platform in the world. With a solid ecosystem of dApps, tokens, and services around it, ETH is too hard to ignore by mainstream developers and individuals alike. I guess no competitor can beat Ethereum no matter how fast and cheap they claim to be. Decentralization and censorship-resistance is what matters above all else. With ETH's PoS upgrade on the way, the main Ethereum blockchain will only become better over time. This will greatly solidify ETH's position on the market.

At least, gas fees won't remain high on ETH forever. Things would've been worse if fees kept rising without no indication of going down soon. As long as developers establish a balance between scalability and decentralization, there should be nothing to worry about. Just my thoughts Grin

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Quote from: Abiky on February 09, 2022, 09:16:30 AM

Slowly but surely, ETH will lose traction due to its ever-rising gas fees. Developers must act quickly, otherwise competitors will continue to gain dominance on the market until they "beat" Ethereum for good. Just because ETH has first-mover advantage, doesn't mean that it'll retain its position on the market. It's all a matter of fulfilling people's needs in order to stay ahead of the game. With gas fees as high as $80, only whales will be able to use the ETH blockchain. The average person will look for alternative blockchain networks that are faster and cheaper to use (even if those networks are less decentralized).

BSC's been experiencing an increase in gas fees too, since more people are joining its blockchain network. But it's not to a point where it's ridiculously expensive like Ethereum. Developers just need to continue introducing upgrades to keep the blockchain network as scalable as possible. Unless ETH's long-awaited PoS upgrade comes up, we won't be able to experience a reduction in gas fees anytime soon. Just my thoughts Grin

Unfortunately (and I say unfortunately because I like other coins too) ETH is not only there because of the first mover advantage. It is there because projects still prefer ETH and mainly ERC20 to be published. That is the big reason why ETH is still at second spot. Doesn't mean that it will never lose that position, we have seen plenty of projects lose that position but that doesn't change the fact that we are talking about something that is totally different reasoning then people expect.

As long as new projects keep getting listed in ETH and they keep getting popular, other projects will want to get listed there to be popular as well and that is the main reason why it is second. If projects slowly start to get listed in other networks, which already started but not growing fast enough, then we will see ETH getting to a lower rank one day.

Ngewex Yuk

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Although ETH transaction fees are expensive but in my opinion it is difficult for other coins and even BNB to be able to shift ETH's position, the large number of large projects using the ETH platform of course make the transaction volume continue to increase so expensive gas fees cannot be avoided.

Abiky

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Quote from: LogitechMouse on February 05, 2022, 06:48:47 AM

In terms of market cap? Right now it isn't but as more and more projects go away from Ethereum, these smart contract projects that so called "Ethereum Killer" will slowly increase their market cap.
In terms of number of new projects? There is no doubt that these new projects are preferring cheaper transaction fees like in Binance Smart Chain and in Solana.

Well as long as the gas fees of Ethereum will be high, I think that it will decrease its users and new projects overtime. Lets see in the future if these other smart contract coins will face the same problem as Ethereum is facing when they reach the current price of Ethereum. Correct me though but I felt a slight increase in the fees in BSC though its not that high

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Slowly but surely, ETH will lose traction due to its ever-rising gas fees. Developers must act quickly, otherwise competitors will continue to gain dominance on the market until they "beat" Ethereum for good. Just because ETH has first-mover advantage, doesn't mean that it'll retain its position on the market. It's all a matter of fulfilling people's needs in order to stay ahead of the game. With gas fees as high as $80, only whales will be able to use the ETH blockchain. The average person will look for alternative blockchain networks that are faster and cheaper to use (even if those networks are less decentralized).

BSC's been experiencing an increase in gas fees too, since more people are joining its blockchain network. But it's not to a point where it's ridiculously expensive like Ethereum. Developers just need to continue introducing upgrades to keep the blockchain network as scalable as possible. Unless ETH's long-awaited PoS upgrade comes up, we won't be able to experience a reduction in gas fees anytime soon. Just my thoughts Grin

Daodex

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Sooner or later ETH will take over again, I don't know why vitalik is slow with ETH upgrades but the future will be better, no matter what other projects brings to the table ETH will still remain the grand master of smart contract in crypto space, it's just like comparing BTC with Bitcoin Cash we all know that BCH has newer utility and faster speed but still can't defeat BTC.

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Quote from: Abiky on December 03, 2021, 09:09:19 AM

Do you think competitors will defeat ETH due to ever-increasing gas fees? If not, why? Are constant delays a result of miners' opposition against reducing gas fees on the blockchain? Your input will be greatly appreciated. Thank you.

In terms of market cap? Right now it isn't but as more and more projects go away from Ethereum, these smart contract projects that so called "Ethereum Killer" will slowly increase their market cap.
In terms of number of new projects? There is no doubt that these new projects are preferring cheaper transaction fees like in Binance Smart Chain and in Solana.

Well as long as the gas fees of Ethereum will be high, I think that it will decrease its users and new projects overtime. Lets see in the future if these other smart contract coins will face the same problem as Ethereum is facing when they reach the current price of Ethereum. Correct me though but I felt a slight increase in the fees in BSC though its not that high

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alexeyneu

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really it's about we do not see any real inventions made to solidity by alternate chains. so eth stays as research center. but it's for now. one move on that by rivals and eth days are numbered.

Finestream

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Unfortunately, so far the Ethereum blockchain is the most popular and demanded blockchain, and because of this, no any other blockchain unfortunately can overtake the Ethereum blockchain, but I hope that in the future BSC and any other blockchain will be able to overtake the Ethereum blockchain, as everyone else already tired of this overloaded and expensive Ethereum blockchain that was created for rich people, so for now we just have to wait and hope for a miracle from the Ethereum developers or I hope Ethereum competitors will can do something.

If ethereum 2.0 won't happen this year, i think those competitors' developers will find ways on how to improve their network so it can be more competitive and ethereum users will have the reason to switch on other network. However, if we look on the side of ethereum, having a high transaction fee is not enough to stop using it, some users still prefer the ethereum smart contract because its already well established and most secured platform to use today. So they just ignore the current issue but still hopeful that it will be somehow be reduced soon.

kaka manteng

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I think it's not that easy to beat ethereum in its development, many blockchains are competing with ethereum but it becomes nil because Erc20 is not their competitor. In my opinion, the high transaction fees on the current erc20 platform do not corner Ethereum in the market.

Woodie

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The thing that gives ethereum leverage over its competitors is that these projects have already launched on its platform and migrating to a new blockchain like tron or bsc is not an option as this would cost more money and could derail a project that was well established. So in the actual sense high fees just reduce its network activity and not that they will lose users to these competitors.

Vaculin

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Quote from: Sled on February 02, 2022, 07:36:17 PM

Quote from: asyakashi on February 02, 2022, 10:16:04 AM

Despite the expensive ethereum gas, I don't think it's easy to beat ethereum in the field of the network they have trusted for a long time. The positive side of the high gas of ethereum makes the projects that rise on the ethereum network more serious so that there are not many scam projects that are published here.

Imagining the wide network that Ethereum has, that can't be easy to compete with. Maybe they could win in the other field like fees but that doesn't mean that they are winning already entirely. It could be somehow the competition couldn't just measure by its fees but of course, a lot of things to consider like volume, market prices, etc...
And I don't think that Mr. Vitalik will just let it happen but for sure he will take aggressive action against it.

I guess the developers team of ethereum have planned it out on how to reduce the transaction fees since they are also aware on the problem. But there is no concrete date when will it happen. Despite that, i can see that ethereum will not be easily beaten by its competitors because its still the most established smart network wherein people have build their trust on it. Even the chief of Solana can attest to that and believed that its impossible to kill ethereum. Read it further here: https://www.quora.com/Which-is-most-likely-to-replace-Ethereum-Solana-Cardano-or-Polkadot-cryptocurrency

However, JP Morgan has his own interpretation on the problem. Check it here: https://www.businessinsider.in/cryptocurrency/news/ethereum-may-not-have-too-long-to-get-its-high-gas-fee-issue-in-check-according-to-jpmorgan/articlesho

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Quote from: letyouearn on February 02, 2022, 07:57:16 PM

Competitors will face the same problems (and maybe even more of them) very soon

The older blockchain gets, the more fixed it is. And younger ecosystems loo more safe and convenient until they face some real problems.
Look at Solana for example.

the competitors boast thier low fees but when the prices also go up like ETHs price, they will also experience the same issue with high gas fees. and congestion to the network may even be worse. SOL has more issues than BSC. and the congestion on ADA is worse than ETH. Polygon(Matic) is the only network i found to be reliable. and cheaper tx fees. in terms of popularity however, is not. there is one that has a free transaction fee such as EOS, this is actually great but doomed to be very centralized and criticized all the time.

MFahad

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Etherium failed to solve the high gas fee problem and in future instead of reduce it will increase more. Miners period will be end and gas fee will be very high.
I cannot say than other project will defeat Eth but will attract many good project and investors. No one is happy with such a huge gas fee.
Avax,Sol,Luna can be future best competitors of Etherium.

letyouearn

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Competitors will face the same problems (and maybe even more of them) very soon

The older blockchain gets, the more fixed it is. And younger ecosystems loo more safe and convenient until they face some real problems.
Look at Solana for example.

Mahanton

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Quote from: Natalim on February 02, 2022, 07:49:39 PM

Quote from: Kasabus on February 02, 2022, 07:26:13 PM

Quote from: Pejoh Asu on February 02, 2022, 06:54:53 AM

Quote from: Cryptions on December 06, 2021, 07:20:49 PM

Not really... it's hard to build brand like Ethereum. Mainstream people know Bitcoin, and Ethereum... they have either BTC or ETH wallet. That's hard t change.

True, even they don't care about transaction fees because they buy and keep for the long term, the transaction fee is around $12 which is cheaper because they get big profit. I believe ETH will continue to stay in the top rankings for the long term.

People will definitely live on higher gas transaction fees for ethereum than to shift into other alternatives that is not as reliable as ethereum. Even myself, i don't see it that the issue will be fixed sooner, it may take a year or two. However, despite of ethereum's higher gas fees, it has also its own advantage above other alternatives which i think is blockchain technology as its widely used for NFTs and Defi tokens. That makes it more ahead from the healthy competition in the market.

They already accept that it become hopeless to see the ETH gas fee decrease as many years had passed that it never change. But if we only have another option to move our coins without the use of ETH, that would be the thing to do. However, with the connection has been attached to other projects it holds us, and still have no choice but to still pay huge transaction fees. But, this never is our basis to think that ETH has been surpassed by other projects, that is not enough, though.

For now its not really worth to make out some erc20 token based transactions yet fees would really be a big problem unless if you do transact big amounts then this wont be an issue but if you are just tending to transact small amounts then you would really be seeing this as a big problem.Speaking of getting replaced with competitor then it would depend on market demands and recognition because not all would really
be going on the same path and do still believe on what ETH had able to achieve in terms of its total relevance and actual utility.

Natalim

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Quote from: Kasabus on February 02, 2022, 07:26:13 PM

Quote from: Pejoh Asu on February 02, 2022, 06:54:53 AM

Quote from: Cryptions on December 06, 2021, 07:20:49 PM

Not really... it's hard to build brand like Ethereum. Mainstream people know Bitcoin, and Ethereum... they have either BTC or ETH wallet. That's hard t change.

True, even they don't care about transaction fees because they buy and keep for the long term, the transaction fee is around $12 which is cheaper because they get big profit. I believe ETH will continue to stay in the top rankings for the long term.

People will definitely live on higher gas transaction fees for ethereum than to shift into other alternatives that is not as reliable as ethereum. Even myself, i don't see it that the issue will be fixed sooner, it may take a year or two. However, despite of ethereum's higher gas fees, it has also its own advantage above other alternatives which i think is blockchain technology as its widely used for NFTs and Defi tokens. That makes it more ahead from the healthy competition in the market.

They already accept that it become hopeless to see the ETH gas fee decrease as many years had passed that it never change. But if we only have another option to move our coins without the use of ETH, that would be the thing to do. However, with the connection has been attached to other projects it holds us, and still have no choice but to still pay huge transaction fees. But, this never is our basis to think that ETH has been surpassed by other projects, that is not enough, though.

Sled

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Quote from: asyakashi on February 02, 2022, 10:16:04 AM

Despite the expensive ethereum gas, I don't think it's easy to beat ethereum in the field of the network they have trusted for a long time. The positive side of the high gas of ethereum makes the projects that rise on the ethereum network more serious so that there are not many scam projects that are published here.

Imagining the wide network that Ethereum has, that can't be easy to compete with. Maybe they could win in the other field like fees but that doesn't mean that they are winning already entirely. It could be somehow the competition couldn't just measure by its fees but of course, a lot of things to consider like volume, market prices, etc...
And I don't think that Mr. Vitalik will just let it happen but for sure he will take aggressive action against it.

Kasabus

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Quote from: Pejoh Asu on February 02, 2022, 06:54:53 AM

Quote from: Cryptions on December 06, 2021, 07:20:49 PM

Not really... it's hard to build brand like Ethereum. Mainstream people know Bitcoin, and Ethereum... they have either BTC or ETH wallet. That's hard t change.

True, even they don't care about transaction fees because they buy and keep for the long term, the transaction fee is around $12 which is cheaper because they get big profit. I believe ETH will continue to stay in the top rankings for the long term.

People will definitely live on higher gas transaction fees for ethereum than to shift into other alternatives that is not as reliable as ethereum. Even myself, i don't see it that the issue will be fixed sooner, it may take a year or two. However, despite of ethereum's higher gas fees, it has also its own advantage above other alternatives which i think is blockchain technology as its widely used for NFTs and Defi tokens. That makes it more ahead from the healthy competition in the market.

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