How Crypto Transaction Fees Are Going to Zero and Why This Should Excite You
Traditional brokerages offer zero-fee trading. But, of course, it only costs us our data. Here's why crypto transaction fees are trending toward zero and why you need to pay attention to this!
Stock trades in my original E-Trade account were somewhere around $50. Even withdrawing money from the account came with fees attached. My first cell phone charged me $0.10 per text message and came with limited call time. Increasing competition, better technology, and more adoption decreased consumer prices. We are seeing the same thing play out in decentralized finance at hyperspeed.
One day, I'll be able to tell my grandkids I remember when it cost $500 in ETH gas fees to mint an NFT or $50 in ETH to transfer ERC-21 tokens. They will listen, in horror, as I tell them how long confirmations would take and how sometimes, your ETH fees would…disappear without the transaction completed.
Today, I will discuss how and why smart contract chains are changing and why these innovations will foster explosive growth in DeFi.
How a multichain Web3 landscape may look
(This pic is for any of my female readers out there. I didn't want to use a self-portrait, so I found the closest free stock photo I could use)
We are witnessing a land grab between these different projects for establishing the most robust ecosystem. While multiple chains will co-exist, I envision each chain having its strengths.
Think of it like social media. Twitter users are shouting out messages to entire communities. Meanwhile, Facebook is more geared toward personal connections. Instagram allows people to share their views and thoughts visually, while Reddit is more of a resource for learning and sharing information.
Perhaps Ethereum will stay the primary chain where large sums of value are held and moved due to its security. Meanwhile, layer 2's will be…