The Ethereum blockchain is limited in the number of transactions per second. This inevitably leads to high transaction fees when the load is high, which paralyze the network. This circumstance is currently reviving alternative networks such as the Binance Smart Chain.
In 2015, Ethereum revolutionized the crypto market with smart contracts. From then on, it was possible to program decentralized applications directly on the blockchain. This progress forms the basis for today’s Defi applications. It took almost five years until the first Defi hype and the broad attention of the crypto community. In addition to the insufficient infrastructure, the lack of applications can also be cited as a reason for the standstill that lasted several years.
But the growing demand also has its downsides. The network can only process a limited number of transactions and can therefore hardly withstand the current rush. The resulting ever-increasing transaction fees make many decentralized applications no longer usable. Small investors, in particular, are confronted with sometimes unbearable transaction fees.
