Try Quests to earn AVAXFlipside's World Cup Kick Off: Gas Guzzlers
Introduction
What Are Gas Fees?
Gas fees are the transaction fees that users pay to miners on a blockchain protocol to have their transaction included in the block. The system works on a standard supply and demand mechanism. If there is more demand for transactions, miners can choose to include the transactions that pay more, compelling users to pay more to have their transactions processed quickly and efficiently.
What generates a gas fee?
All transactions carry a variable gas fee that’s based on the size and complexity of the operation. A payment or transfer of Ether from one account to another (for an online purchase, or reimbursing a friend for a payment) is one of the simplest and cheapest transactions. Other operations that generate gas fees include creating a non-fungible token (NFT), or creating and executing a smart contract.
Why are gas fees necessary?
A basic concept in economics is that all work requires compensation. In a blockchain network like Ethereum, computers are using electricity to compute and verify transactions taking place. Electricity -- and the computer that uses it -- costs money. The people who pay for the lights (and the computer) to stay on should be compensated for their efforts to keep the Ethereum network functioning properly and to prevent unauthorized tampering with the blockchain or theft.
Algorand
Algorand is a proof-of-stake blockchain cryptocurrency protocol. Algorand's native cryptocurrency is called ALGO.
Ethereum
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform.
BSC
Binance Smart Chain (BSC) is a blockchain network built for running smart contract-based applications.
Arbitrum
Arbitrum is an open-source cryptocurrency platform developed by Offchain Labs. It operates as a Layer 2 solution for Ethereum aiming to bring scalability and affordable transactions for ETH network users.
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Methodology
In this dashboard, using the database tables of Algorand, Ethereum, BSC, Arbitrum, Optimism, Osmosis, Flow, Near, Polygon, and Solana networks, which are available on the Flipside database chain, to check the status of fees in these 10 networks We will discuss different aspects.
Note: In this dashboard, the analysis is based on the data of the last 30 days.
Technical:
> Algorand Tables: > algorand.core.fact_transaction > algorand.core.ez_price_pool_balances > > Ethereum Tables: > ethereum.core.fact_transactions > ethereum.core.fact_hourly_token_prices > > BSC Tables: > bsc.core.fact_transactions > bsc.sushi.ez_swaps > > Flow Tables: > flow.core.fact_transactions > flow.core.fact_prices > > Near Tables: > > near.core.fact_transactions > near.core.fact_prices > > Solana Tables: > > solana.core.fact_transactions > solana.core.fact_token_prices_hourly > > Osmosis Tables: > > osmosis.core.fact_transactions > crosschain.core.fact_hourly_prices > > Arbitrum Tables: > > arbitrum.core.fact_transactions > > Optimism Tables: > > optimism.core.fact_transactions > > Polygon Tables: > > polygon.core.fact_transactions > > Filter of Date: > > block_timestamp :: date >= current_date - 30
Findings
In the charts of this section, we have a general overview of the amount of transactions and the number of transactions and blocks and the number of senders.
The ==highest fee paid== in the ==last month== is for the ==Ethereum== network. Validators have been received ==$114.6 million== in fees for processing transactions on ==Ethereum==. After Ethereum, ==Binance== Network is with a total of ==$23.4 million==. In third place is Paligan network with a total fee of 3.36 million dollars. ==Algorand network is in ninth place with a total fee of 14.8 thousand dollars.== It should be considered that receiving a ==lower fee== means increasing the ==speed of processing transactions.==
On the Ethereum network, an average fee of $3.5 per transaction has been received, which is the highest fee for processing transactions among 9 other famous blockchains. After Ethereum, BSC with $0.2 and Optimism with $0.1 are in second and third place. ==Algorand network is in fifth place with a fee of $0.0046 for processing each transaction.== The lowest transaction fees are for Flow and Solana networks.
The largest number of senders (active users) of transactions are on the BSC, Polygon and Ethereum network, respectively. ==Algorand network is in sixth place with 2.8 million senders of transactions in the last month.== BSC network is in first place with 46.3 million senders of transactions.
Findings
In the chart on the left, we see the average fee paid per user (transaction sender). The highest average fee paid per user is related to the Ethereum network. The ==average fee paid per user== in different networks is as follows: ==$7.6 on the Ethereum network. (rank 1)== $1.06 in Optimism network (rank 2) $0.5 in BSC network (rank 3) $0.4 on Arbitrum network (rank 4) ==$0.005 on Algorand network (rank 9)== $0.000892 on Flow Network (rank 10)
Findings
In this section, we examine the status of the fees paid in each network in various charts. The highest fee paid in the last month is for processing transactions for the Ethereum network. $114.6 million in Ethereum network fees have been received by validators. Flow network has the lowest fee among 9 other networks by receiving a total of $2,903. Algorand network is in the fifth place among 9 other blockchains by receiving a total of $14.8 thousand in fees.
In "Top 10 Blockchain - Daily Amount of Fee [USD]"chart, we see the amount of fees paid in each network on a daily basis for the last month. The highest daily fee paid on the Ethereum network was $8.18 million on November 8. The highest daily fee paid for ==Algorand== network on November 14 is $352.
On November 11, the collapse of the FTX exchange occurred, and we can see in the charts that the fee payment amount has decreased since this date. Paying less fees means the number of transactions and active users has decreased, which could be due to investors' fear of the FTX crisis.
Findings
In the graphs of this section, we analyze the status of blocks in 10 famous blockchain networks in the last 30 days. The highest number of blocks was created in Optimism network in the last 30 days. (8.7 million blocks) After Optimism, the Arbitrum network ranks second with 7.9 million blocks. After Arbitrum, Solana network is in third place with 5.05 million blocks. Algorand network is ranked 8th with 698.3 thousand blocks. The Ethereum network is ranked 10th with 214.5 thousand blocks.
The average fee paid per block in the Ethereum network is higher than other blockchains. $534.5 is the average fee for creating each block on the Ethereum network. In Algorand network, the average fee paid to create each block is $0.02.
Findings
In the charts of this section, we see the status of transactions and the fee paid per transaction in the last 30 days in 10 blockchains on a daily basis.
In the chart, we can see that the highest number of transactions is on November 11, and Solana ranks 1st with 40.4 million transactions. On the Solana network, a fee of $0.00018 was charged for processing each transaction on November 11. On this date, 1.11 million transactions have been processed on the Ethereum network, and a fee of $3.5 has been received for each transaction. On the Algorand network, 118.15 thousand transactions were processed with a fee of $0.003 per transaction on November 11. The reason for the increase in Solana transactions on November 11 is the announcement of the collapse of the FTX exchange, which caused a sharp fall in the price of the Solana token [SOL] and caused many fears in the holders of the Solana token that users quickly sold the Solana token to avoid further losses. However, we see that the Solana network, despite processing more than 40 million transactions, received a measly $0.00018 per transaction processing fee.
Findings
In the charts of this section, we check the status of transaction senders (active users) in different networks in terms of the number of senders and fees in the last 30 days on a daily basis. The highest number of active users (46.3 million users) is in the BSC network. The second network is Polygon with 20.5 million users. Ethereum network is in third place with 15.02 million users. Algorand network is in sixth place with 2.8 million users in the last 30 days.
In the daily chart, we can see that on October 25, the largest number of active users were present in the networks, that the BSC network is in the first place with 1.5 million users, and the Algorand network is in the second place with 959.9 thousand active users.
Findings
In the chart on the left, we can see the number of transaction senders (active users) cumulatively in different networks in the last 30 days. In the chart, we can see that since October 23, the number of active users on the network has increased with the increase of hopes for the end of the bear market. Of course, on November 11, with the collapse of the FTX exchange, the market fell sharply and destroyed the previous hopes.
Conclusion
In this dashboard, we reviewed 10 different networks in terms of the amount of paid fees. We observed that the highest amount of fees paid for processing transactions is related to the Ethereum network. And the BSC and Polygon networks are in second and third place after Ethereum. Algorand and Flow networks are also in ninth and tenth place with the lowest amount of commission.
We found that the lower the fee, the faster the transaction approval and the number of participants to process transactions will increase. Another advantage of the lower fee is the saving of electricity, which makes many users who are also interested in the environment support the respective blockchain, and ultimately increases the number of users and the popularity of the blockchain.
We realized that a very low and zero fee can be harmful to the network in terms of the number of spam and failed transactions and cause a decrease in network performance. Therefore, the appropriate fee can both increase the performance of the network and increase the number of users and the popularity of the respective blockchain.