What are Gas Fees and How to Avoid High NFT Gas Fees?

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1 year ago
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WHAT ARE GAS FEES?

Gas costs are the payments people make to complete a transaction on a blockchain, according to our NFT dictionary. These fees are used to reimburse blockchain miners for the processing power they expend confirming transactions on the blockchain. Usually, they receive payment in the native cryptocurrency of the blockchain. While paying for gas is a must for blockchain transactions (you can’t do them without it), the price of gas itself is extremely volatile and depends on a wide range of variables.

Block time and transaction throughput are the two key components for each blockchain, determining how quickly new blocks are generated.

How to avoid high NFT gas fees

1. Plan ahead and time it right

  • As network activity is the main cause of the fluctuations in gas costs, keeping an eye on the traffic is a terrific way to pay less for petrol

  • Transaction fees can go up when there is a spike in transactions on particular days and hours

  • One study claims that Saturdays and Sundays often have the lowest pricing for Ethereum gas

  • The network is busiest on Tuesdays and Thursdays when it is highest

  • It is recommended to wait till the network is calmer if your transaction is not urgent

  • To comprehend the condition of the blockchain at various points in time, you can also use a variety of free analysis tools

2. Adopt Layer 2 and sidechain solutions

  • To get around Ethereum’s limitations, a number of Layer 2 solutions and Ethereum sidechain platforms have emerged in recent months

  • In essence, these are several blockchains that are faster, less expensive, or both built on the Ethereum network

  • One such significant protocol is Polygon, which has attracted numerous projects over time, particularly from blockchain game creators

  • Polygon delivers quick and inexpensive transactions and is fully compatible with Ethereum

3. Combine transactions

  • Combining similar transactions is an additional easy technique to save on gas

  • This is due to the fact that the cost of gas depends on the nature of the transaction

4. Switch to a blockchain with low or no NFT gas fees

  • For initiatives using tokens and DeFi, the Ethereum blockchain has become the standard

  • Due to the increased activity on this blockchain in comparison to other blockchains, gas prices are higher

  • In order to reduce your gas costs, it may be a good idea to switch to a different blockchain

  • However, it’s crucial to consider both the advantages and disadvantages before moving

  • While switching from Ethereum can provide a challenge when using third-party services that primarily use Ethereum, alternative blockchains may provide reduced transaction fees and greater scalability

5. Use gas tokens

  • You can tokenize gas using gas tokens, by create gas tokens at low gas prices and then use or redeem them at high rates

  • You will receive your return in ETH, which you can use to cover your gas costs, when you redeem a gas token

  • In essence, the storage refund scheme on Ethereum is used by gas tokens

  • Users are rewarded for eliminating storage variables in this situation

  • One well-known gas token project is GasToken.io

  • GasToken operates in a straightforward manner: first, you mint a token by storing data in the GasToken contract’s storage while gas prices are low

  • Then, you submit these tokens to the GasToken contract to spend them when the prices rise

REFERENCE:

  1. https://nftevening.com/heres-what-you-need-to-know-about-crypto-gas-fees-and-the-hidden-cost-of-nfts/

DISCLOSURE:

None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.

Please note that the tech industry evolves rapidly and the info in this article is correct at the time of publishing. As Heraclitus said, “Change is the only constant,” so if anything sounds old or off, please holler on the socials or comment here so everyone stays peeled.

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