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High gas price is killing some projects (seriously)
Hi there.
This is Andrey Zamovskiy from Ambisafe.
My company is a tech force behind some of the largest scale ethereum projects:
1) The first live ethereum currency (http://elcoin.space) with ~40,000 users
2) government voting solutions
https://bitcoinmagazine.com/articles/ukraine-government-plans-to-trial-ethereum-blockchain-based-election-platform-1455641691
I've been evangelizing ethereum and pushing it as the only rational choice for multiple organizations over the last 6 months.
2 major reasons why we've decided to go forward with ethereum were
1) fast confirmation time (anything longer than minute is not feasible for point of sale use cases)
2) transaction price that makes economical sense. $0.07 for bitcoin-based colored coins (like Omni Layer) is what makes it useless for most of the bitcoin 2.0 use cases, like reward points.
If i understood the idea properly, the gas price was supposed to go down proportionally to the Ether currency price increase. This is not happening.
When we've been launching Elcoin, the cost of transaction was fraction of a cent ($0.001).
example: http://etherscan.io/tx/0x6f96c49011dd7d58e24b60c4cb4cbd59ae20dff38f839fe6a6e4e31156197204
0.002 ether at $0.7 price per ether.
Now ether price grew up from $0.7 to $10 and gas cost have not changed at all which makes transaction cost $0.03.
We've already spent several thousands dollars on transaction fees and feel like a scammed customers.
I'm pretty sure that this trend will continue and ethereum transaction will quickly become more expensive than embedding data into bitcoin transaction, which is complete nonsense for the smart contracts-optimized network.
This makes public Ethereum blockchain useless for most of the distributed applications. In distributed applications almost every action of a user is a transaction of some kind. And since transactions are now so expensive, it just does not fit business models.
Examples of the applications that we were going to develop with public ethereum blockchain, but they are no longer feasible:
1) large scale voting
2) petitions
3) identity
4) gift cards & loyalty programs (they were never perceived like a money transfers so transaction fees does not make sense there).
It is really critical for us to see a roadmap of transaction cost decrease with clearly defined dates and milestones, because currently we have no choice other than switching to private networks.
Cheers,
Andrey
This is Andrey Zamovskiy from Ambisafe.
My company is a tech force behind some of the largest scale ethereum projects:
1) The first live ethereum currency (http://elcoin.space) with ~40,000 users
2) government voting solutions
https://bitcoinmagazine.com/articles/ukraine-government-plans-to-trial-ethereum-blockchain-based-election-platform-1455641691
I've been evangelizing ethereum and pushing it as the only rational choice for multiple organizations over the last 6 months.
2 major reasons why we've decided to go forward with ethereum were
1) fast confirmation time (anything longer than minute is not feasible for point of sale use cases)
2) transaction price that makes economical sense. $0.07 for bitcoin-based colored coins (like Omni Layer) is what makes it useless for most of the bitcoin 2.0 use cases, like reward points.
If i understood the idea properly, the gas price was supposed to go down proportionally to the Ether currency price increase. This is not happening.
When we've been launching Elcoin, the cost of transaction was fraction of a cent ($0.001).
example: http://etherscan.io/tx/0x6f96c49011dd7d58e24b60c4cb4cbd59ae20dff38f839fe6a6e4e31156197204
0.002 ether at $0.7 price per ether.
Now ether price grew up from $0.7 to $10 and gas cost have not changed at all which makes transaction cost $0.03.
We've already spent several thousands dollars on transaction fees and feel like a scammed customers.
I'm pretty sure that this trend will continue and ethereum transaction will quickly become more expensive than embedding data into bitcoin transaction, which is complete nonsense for the smart contracts-optimized network.
This makes public Ethereum blockchain useless for most of the distributed applications. In distributed applications almost every action of a user is a transaction of some kind. And since transactions are now so expensive, it just does not fit business models.
Examples of the applications that we were going to develop with public ethereum blockchain, but they are no longer feasible:
1) large scale voting
2) petitions
3) identity
4) gift cards & loyalty programs (they were never perceived like a money transfers so transaction fees does not make sense there).
It is really critical for us to see a roadmap of transaction cost decrease with clearly defined dates and milestones, because currently we have no choice other than switching to private networks.
Cheers,
Andrey
Post edited by nixoid on
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