Ethereum Foundation says merger won’t improve fees or throughput – Technology Bitcoin News

Ethereum Foundation clarifies that gas fees are a product of network demand – The merge does not significantly change parameters that directly influence network capacity or throughput.

The Ethereum Foundation wants the public to be aware that while The Merge does transition from PoW to PoS, the assumptions that fees will decrease are false. The statement has been added to the foundation’s definition and summary of The Merge, hosted at ethereum.org.

The page has been updated a few times and the last update was on August 16, 2022. Ethereum developers are expected to meet on August 18, 2022.

“Gas charges are a product of system demand vs. system capacity“, the newly updated website states explains. “”The merge deprecates the use of proof-of-work, moving to proof-of-stake for consensus, but does not significantly change the parameters that directly influence system capacity or throughput.””

While transaction fees on Ethereum will not change after the merger, users who want lower fees will have to use Level 2 (L2) scaling solutions and wait for further Ethereum upgrades. After the merger, Ethereum will implement The Surge, The Verge, The Purge, and finally The Splurge.

The Surge aims to improve scaling by leveraging the following zero-knowledge rollups (ZK-rollups) via sharding techniques. Ethereum’s The Verge transition will apply to Verkle trees to achieve statelessness using the Merkle proof upgrade. While fees won’t be reduced right away, Ethereum’s onchain fees have reached the lowest rates since 2020.

Data from bitinfocharts.com shows that the average network fee today is 0.0012 ether or $2.28 per transfer. Etherscan.io shows lower fees of about 22 gwei or $0.85 per transaction.

A sale on the Opensea marketplace costs $2.90, an exchange on Uniswap costs $7.47, and an ERC20 (USDT) tether transfer is $2.19 per transfer on Wednesday. L2 fees are lowest on Loopring and Zksync, with costs ranging from $0.04 to $0.06 to send ether.