Ethereum holders can breathe a sigh of relief as gas crisis is calming down
Gas prices were skyrocketing due to Ethereum blockchain congestion. On July 2, the users had to spend 5,862 ether (worth around $2.7 million on that day) on Ethereum gas. It was the highest amount spent on Ethereum fees in one day.
For those who aren’t aware, Ethereum gas is the fee that the users pay to miners for the computational power which is needed to secure their transactions. The price fluctuates based on the demand and in the recent times it escalated to new highs. A similar situation was observed in December 2017, when the CryptoKitties -- digital cat-breeding game -- was congesting the network.
However, the total gas expense at that time was less than half of what it has been in the previous week. Users had to pay as much as $3.20 per transaction or face a waiting time of more than 30 minutes for their transaction on July 2, according to Eth Gas Station.
Luckily, now the price is improving as according to data from Blockchair. Reportedly, Ethereum’s median transaction fee is now fast returning to its previous levels. It appears that the gas crisis is either over or will very soon be.
Who is to be blamed for the Ethereum congestion?
Various reports suggested that controversial Chinese-exchange FCoin is linked to it. Reportedly, Fcoin implemented a new voting system which supposedly ‘incentivizes a Sybil attack’. A Sybil attack is an act of creating large numbers of fake identities to gain a disproportionately massive influence on a network. MyCrypto called the voting mechanism to be 'mind-numbingly despicable' in a recent Tweet.
The new voting system quite unlike the traditional ones normally used by other crypto exchanges. The voting system allows users to vote for tokens to be listed on the platform via deposits. Thus, one deposit equals one vote. As a result, various tokens made deposits for gaining votes leading to clogging of the network.
Fcoin held a vote to determine which token to list on their exchange next and used a rather bizarre voting model called cumulative deposit number ranking, which essentially means that one deposit to the exchange equals one vote. This incentivized those who wanted to get a particular token listed to flood the Ethereum network with transactions, which could very well have played a big part in congesting the network.
Other Related Articles
Image via Shutterstock
Join our Telegram group