The Ethereum network is for making transactions greater than USD 10,000, recommends an entrepreneur

table compares expense in commissions for transactions in ethereu, according to rollup applied

Key facts:
  • Rollup fees (layer 2) are up to 4 times cheaper than the Ethereum mainnet.

  • The costs for transactions on the main network are related to the security it provides.

Safe trading on Ethereum comes at a price. An entrepreneur from the cryptocurrency ecosystem ensures this and recommends that the main network be used only for transactions greater than USD 10,000.

Who This was expressed in his account Twitter is the specialist known as Alucard.eth. For the founder —among other projects— of the educational platform UltraSoundFinance, small transactions should be done on Ethereum second layer solutions (for example, rollups, which allow transactions to be executed outside the main network).

The recommendation is due to the high commissions that the network co-created by Vitalik Buterin charges for operating on it. According to Alucard.eth, the commissions to be paid must be in line with the amount to be transferred. The higher the amount, the lower the percentage amount in commissions.

Because the Ethereum mainnet (or mainnet) is more secure than second layer scalability solutions, is that should be the preferred option for large amounts.

The rollupsInstead, they have a lower number of validator nodes than the main network. Although they cannot be considered insecure, they do have greater vulnerabilities. For amounts less than USD 1,000, the entrepreneur cited here emphatically recommends the use of rollups.

table compares expense in commissions for transactions in ethereu, according to rollup applied
Rollups like Loopring have commissions of up to USD 0.08. Source:

At the moment, rollups such as ZKsync and Optimist have commissions below USD 0.5 per transaction, according to the portal L2 Fees. While, in Ethereum, in a current period of stability, the commissions are around USD 2 (but can be several tens of dollars when the network is congested).

The aforementioned entrepreneur makes a comparison with what happens in the traditional financial system. When a person wants to send a friend $50, he uses any payment processor (like PayPal or Zelle, for example). Nevertheless, if you want to send thousands of dollars, possibly using means that offer greater securitysuch as bank transfers.

The reality is that Ethereum is the foundation of cryptocurrency security. Without it, there would be much less money in the ecosystem. You can’t expect billions in any financial ecosystem without the security to keep those billions safe.

Alucard.eth, entrepreneur of the cryptocurrency ecosystem.

The more computing power, the more security

The safest decentralized currency network in existence is Bitcoin due to the level of hashrate (computing power) it has, followed by Ethereum.

In Ethereum, a transaction with 720 confirmations (which takes about two hours) has been irreversibly secured. This number of confirmations is equivalent to 6 Bitcoin (which takes about an hour).

In Ethereum rollups, the computing power is less than in the main networkso it is also the security provided on the operations carried out in them.

See also  Bitcoin mining rewards surpass those of Ethereum for the first time in 2022

Leave a Comment

Your email address will not be published.