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Ethereum transaction fees won't go down after the update

Ethereum transaction fees won't go down after the update

Long waiting upgrade of the Ethereum won't reduce of fees for the transactions.

According to DeFi-analyst Vivek Raman, the update should move the Ethereum blockchain from the existing Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS). In doing so, "Proof-of-Stake reduces Ethereum issuance, lowers power consumption, increases security (the cost of attacking the blockchain increases), and makes Ethereum more resilient economically," the analyst noted. “However, none of this has anything to do with commissions. The amount of commissions depends on the demand for the blockchain space. If people want to use ETH all at once, the amount of commission will still grow.”

It is expected that developers will launch the Ethereum2.0 update between August and November. The transition to the new consensus has been postponed several times before. 

Recall that commissions are paid each time an ETH transaction is processed and validated by the miner, who receives a portion of the gas fee as a reward for maintaining the network.

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