Cryptocurrency Ethereum was caught in a Catch-22 situation, as a China-based business model – Fcoin triggered a massive spend of $2.7 million purely as transactional fees on Monday. CEO of MyCrypto, Taylor Monahan has said that it is vital that users are cautious when setting transaction fees on Ethereum.
Taylor words are marked by the community as diverse changes in conditions of work, and the over-priced transaction fee. Monahan expressed his angst in a tweet, “It’s [good to remember] what gas actually is, how it works, and why it’s necessary and why this situation is unnecessary.” Price of gas is defined as the fee which users pay in order to use the network.
In routine trading conditions, the price of gas will change with the demand for it. Lately, such demand has grown beyond possibilities and is escalating to high levels.
It was found that in December, digital cat game, Cryptokitties, had set the network on over flow. The total gas expenses were considerably high.
“The problem is what is causing these fees to go up and how that affects to the usability of the blockchain in a broader sense,” Monahan said. According to leading ether gas measuring website, Eth Gas Station, the gas prices were not very high. Read more from zycrypto.com…
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