“Ethereum has the largest ecosystem in the entire crypto market making it one of the most used blockchain networks. The high usage and an extensive number of transactions being executed on Ethereum makes it an extremely slow and an expensive blockchain to work with. It has been frowned upon all the time for an extremely high gas fee.”
The Gas Fee Scenario
Complaining about the gas fee on the Ethereum network is like beating a dead horse as the Ethereum network has been a victim of slow improvements and high gas fee since its inception. For every transaction on Ethereum blockchain, a hefty amount of transaction fee has to be paid to the miners making the transactions extremely expensive. Many times this year the gas fee went over 3,000 Gwei amounting to over $200 fee per transaction which is insane. This spike in gas fee is due to the traders and the bots that want to execute a transaction before everybody else and thus the prioritization requires fees to be paid.
Though Ethereum is migrating to the proof of stake consensus and through its EIP-1559 upgrade is looking to reduce the high gas fee, until then there are a few ways in which gasless transactions can be made on the Ethereum network.
Gas Fee Saving Techniques for Ethereum
Use of Gasless Exchanges
There are a number of decentralized gasless exchanges such as KeeperDAO, ArcherDAO, CowSwap, MistX etc. that provide for free transactions or transactions with extremely low gas fees. These exchanges are simple to use and they bypass the main pool of the Ethereum network to avoid huge gas fees. Rather they provide a separate mechanism for providing tips to the miner. Though they are not instant and they must be used when the transaction time does not matter and you are converting Ethereum to other tokens or vice versa or sending ERC-20 tokens without a strict timeline. The algorithms on the exchanges will find out the best path possible for the transaction with the minimum fee possible.
Use of Layer 2 Scaling Solutions
Until Ethereum is a proof-of-work blockchain, use of layer 2 solutions is one of the best possible tools for the investors and traders on the Ethereum blockchain to prevent high gas fee payments. The layer 2 scaling solutions such as Polygon (MATIC) takes the transactions away from the main Ethereum blockchain thus providing computational power for the core activities to be executed on the main chain. These layer 2 scaling solutions not only help in reducing the gas fee but remove the bottlenecks in computations on the Ethereum blockchain that can help in effective scaling of the network.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
Photo by vjkombajn on Pixabay