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It is all about transaction fee, gas fee determining how long people will stick on to using a particular blockchain. When scalability increases, transaction fees somehow is not comfortable for users. The best of both worlds is yet to happen. Avalanche is hailed to be cost-effective for now by those who think it is.
Kevinsekniqi Shared: Avalanche transaction fees aren’t the cheapest. There are cheaper chains out there. But much cheaper from would mean centralization. And that’s the point: at the frontiers of efficiency and decentralization, Avalanche is one of the most cost-effective chains out there.
Community Response: If L1s and L2s offer insanely cheap fees, always ask yourself: What am I giving up here? Yes, this includes L2s.
100% It’s also very fast considering how cheap it is. The recent polygon chaos outlined that for me. Paying 1000 Wei for a tx to have the same cost as an avalanche but it takes 5+ minutes to complete only for it to revert due to slippage. UX is undervalued.
It certainly happened to me several times last week until that game got shut down.
First BTC maxis said this same thing about ETH, then ETH maxis said this about other L1s, and now AVAX is saying it lol. The cycle continues.
Decentralized? In nodes yes. Distribution big no. Technology BIG no they have a patent and will sue. When Cardano who’s open-source matures they will have predictable fees and be more decentralized in every way.
You had me until Cardano. Yeah, don’t need to like them just an example of a decentralized protocol that will have predictable reasonable fees. The argument of we have unpredictable large fees because of decentralization, isn’t it?
What does Cardano do when blocks are full without a fee auction mechanism? Let’s see how expensive it will get once it gets used 2x 10x from today.
For reference, it’s used about 80% ETH transactions yet fees are rarely about a dollar and in general a few cents.
This doesn’t show a comparison of ETH: Avax on-chain metrics, it doesn’t even show the Avax metrics. Also, you need almost 200k USD to spin up a node. not very decentralized how I see it.
Re validator eligibility, 2000 AVAX requirement will come down in the future. However, it is not in the best interest of the chain to make it dirt cheap (due to safety). You can always stake with validators easily though and get the rewards.
There shouldn’t be a race towards decentralization. The questions should be what’s the minimum level of acceptable decentralization and optimize around that. I certainly don’t need to pay an extra 20k dollars to have a roll cage added to my car.
No, but toward the “frontiers of efficiency and decentralization”. May I ask how you conclude that avalanche is not centralized?
Okay. So, you have to be rich to be a validator. The 2000 AVAX equals ~ $180k. How can you call that not centralized?
Theoretically: Yes. But the core question of distribution remains to be solved. Further, money is like gravity: So, (1) how do you distribute while sustainably avoiding stake concentrations? And (2), how do you keep that distribution flat once achieved? Very though. Tax?
As the price of AVAX grows, will the governing body move the fee %s down? Always curious how that piece worked Thinking of when AVAX is closer to $1,000 than it is to $100
If something is insanely free probably it costs u a lot. Nothing comes for free. What I like the most about AVAX is that the work is amazing. So, it is worth it.
We are in the era of decentralization. There may be cheaper chains but none offer the speed with which smart contracts in AVALANCHE are delivered.
This needed to be said, Avalanche is one of those that is truly decentralized at heart, which many projects aren’t.
