Feb 11, 2022
More affordable DeFi transaction now achievable with web3
More affordable DeFi transaction now achievable with web3
Cryptocurrency is fast becoming one of the mainstream platforms these days. However, some are still very hesitant with investing in such assets as they are still thinking about its drawbacks. In addition, some who are very curious found out that transaction fees could go expensive. Thus, they opted to choose alternatives.
With the discovery of web3, platform developers can now create a system that will reduce the gas fee. And in the future, these platform developers aim to eliminate the gas fees to make DeFI transactions more affordable. Here’s what will happen.
Scalability in the blockchain
Despite the upgrade cryptocurrency has received, scalability remains one of its major disadvantages. By definition, scalability is the ability of a project, system, or organization to perform well under an expanding workload. A well-scaled system will maintain or even improve its level of performance or efficiency even as it is put to the test by increasing operational demands.
Congestions often happen on cryptocurrency, which leads to users’ frustration. By that, some users choose to transact using a less congested system. However, it will return to a much more expensive gas fee.
The introduction of web3 will resolve the problem as it could minimalize the gas fee. The transaction would emit lesser gas fees, unlike its predecessor-web2.0.
There are many ways to minimize gas fees, such as upgrading layer one of the blockchain or by Ethereum improving its network. However, the most viable solution is by creating a Layer 2. A layer-2 network or technology operates on top of an underlying blockchain protocol to improve scalability and efficiency.
These layer-2s use math and cryptography to securely validate transactions without sending as much data to the blockchain. It’s like combining a thousand transactions for the price of one, but without sacrificing security.
Once scalability is solved using L2 or other alternative solutions, the gas fee will slowly reduce and will provide a much more affordable ecosystem to the users.
For now,
Crypto developers are still figuring out how to reduce or altogether remove the gas fee. Meanwhile, there are a few options for mitigating gas fees by yourself. The first option is to choose a lesser congested time to transact as it could considerably lower transaction fees. Transact during non-busy hours such as midnight(EST). People are mostly asleep during this period. Hence, fewer people transact during this time.
You could also choose lower transaction fees. However, it will return to a more sluggish validation from the blockchain due to the number of users.
PrivacySwap’s Goal
It is nearly impossible for us to influence the gas fee as we still rely on the blockchain. However, we work day and night to develop an all-in-one ecosystem. This will significantly reduce the number of transactions. You can trade, buy, sell, play and even cash out funds without jumping from one platform to another. Remember that every move you make in the blockchain returns a gas fee.
Lastly, we are utilizing the power of web3.0. Once the developers figure out how to fix the gas fee situation, the ecosystem would be much cheaper and more convenient for everybody.
Come with us as we revolutionize the DeFi space!
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