Can xGOLD ETH Cope Up With High Transaction Fees?
Forsage deals with ethereum, the world’s 2nd largest cryptocurrency, ever since the beginning.
It all started on the 6th of February, 2020, when Forsage was launched on Ethereum Blockchain. As the platform was linked with blockchain, it became next to impossible to hack or turn it down. An International Community Global Decentralized System where payments are instantly credited! People loved this system. The ideology soon began to be accepted by the modern enthusiastic thinkers as they thought of it as a futuristic opportunity to change their lives, once and for all. The results were splendid, leading the popularity of the platform to skyrocket over a short period of time. In the span of first six months, Forsage made its own unique record by crossing over 1 million registrations of active members with over ten thousand new registrations per day. That’s quite a bit of stats!
However, at one moment, transaction fees in the Ethereum network became too big. Transaction Fee is a small amount of ether charged by the miners who validate or approve your transaction and add it to the blockchain every time you make a transaction.
At first glance, it can be confusing to decipher how the ethereum fee works. To get some perspective, let us first cover how fee works in Bitcoin.
In Bitcoin, a block is added to the blockchain, roughly every ten minutes, and each block is limited to one megabyte. As a block has limited space within, there is a fee market according to which you have to pay miners to get your transactions added to the block. It’s not the amount of Bitcoin in your transaction that matters; it’s the size in byte that matters.
If a lot of people want to have their transactions added to the block, and if the blocks are consistently full, the miners only add the transactions with the highest transaction fee compared to the transaction size to maximize their own profits, resulting in people paying higher fees to make sure their transaction gets added as quickly as possible. And if there is less demand, the blocks don’t get consistently full and the fee goes down so miners have to add transactions despite getting small fees. A small fee is better than nothing after all.
In Ethereum there isn’t a maximum block size in bytes instead, there is a maximum amount of gas per block called the block gas limit. Unlike Bitcoin, the block gas limit is elastic. In the early days, the limit was 5 thousand but now it’s sitting around 12.5 million.
This has created an impact on Forsage Community. Leaders faced problems in expanding their teams any further because the new recruits had to pay double or triple the cost of what was actually required for registration.
But the question here isn’t about how the ethereum fee works; it’s about how the xGOLD program will cope up with the high network fees of ethereum? Will it bring the Ethereum platform back to its prime?
This is where the advancement of Ethereum 1.0 to Ethereum 2.0 and the adoption of an innovative technical solution with the latest smart contract programming features come into play.
Ethereum 1.0 Upgrades to Ethereum 2.0
Ethereum 1.0 runs on proof-of-work, or mining. Mining new coins takes a lot of computing power because of the proof-of-work algorithm. The proof-of-work algorithm works by having all nodes solve a cryptographic puzzle. This puzzle is solved by miners, and the first one to find a solution gets the miner reward. To accomplish this feat, miners tend to use tremendous amounts of computing power to solve puzzles. Since they invest so much in expensive mining equipments and electricity, their goal is to get that money back by any means necessary. This sometimes results in an abrupt rise in transaction fees whenever the demand increases.
Ethereum 2.0 will have proof-of-stake, or forging, which is much less hardware intensive, and hence the validators can still be profitable with lower fees. Yes, a little change in the terminology here, proof-of-stake has ‘validators’ who ‘forge’ or ‘mint’ new blocks instead of ‘miners’ who ‘mine’ new blocks. To add more to it, Ethereum 2.0 will undergo sharding where the blockchain will be broken into 64 shard chains all working individually so that the expensive yield farming transactions can be done on different shards than the ones with smaller transactions.
Ethereum 1.0 is already amazing with what it enables, but Ethereum 2.0 takes it to a whole new level. It will offer faster speed, more usability, and the ability to make passive income. Earlier Ethereum 1.0 was able to handle 15–30 transactions per second but after the complete launch of Ethereum 2.0, it is said that it can operate with the lightning speed of a hundred thousand transactions per second.
Adoption of Advanced Smart Contract: A unique yet innovative solution
Launching xGOLD program on Ethereum blockchain meant to overcome the limitations of the smart contract software language. Transactions tend to become heavy and therefore expensive. Launching a standard smart contract in such a manner would’ve come up as detrimental. However, the experience of launching xGOLD on the Tron network helped the developers to learn, optimize, and find solutions to launch xGOLD on the Ethereum network as well!
A new smart contract required a special solution since the xGold transactions are more complicated. The developers came up with a method that enabled a significant reduction of the transaction fee cost. It is the best possible solution for maintaining a low fee for such complex transactions that exist in xGold Ethereum. We acknowledge the hard work and the creativity of the FORSAGE developers team!
The marketing of xGOLD in this case remains intact and works correctly while the FORSAGE program stays transparent and has no access to the user’s funds.
And this is only one of the cool innovations that FORSAGE has in store for us in 2021. To learn about the other upcoming upgraes and releases, check out this article 2021 — A Year Of Great Expectations For The FORSAGE Community.