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Why does Ethereum have a commission for mining (meaning of Ethereum mining)

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Why is there a commission for Ethereum mining

Why is there a commission for Ethereum mining? Why is there a commission for Ethereum mining? The transaction costs of the Ethereum blockchain network are usually divided into two parts: one is Gas (total GasPrice), and the other is transaction fees

I. Gas is the most commonly used way to consume computing and bandwidth resources in Ethereum ecology, and it is also one of the main use cases in most mainstream Cryptocurrency markets. On August 1, 2018, the price of Bitcoin dropped from $40000 to the lowest point of $6000, with a gas price of over $3700 at that time; As the price of Bitcoin continues to decline and break current historical records, it has surged by over 1000% by the end of February this year. This has forced miners to bear high handling fees and network maintenance costs, leading to a large number of miners choosing not to connect to other networks for mining, and may even face a series of risks such as being forced to shut down. However, due to the extremely low efficiency and high utilization rate of the network, the transaction costs on Ethereum are becoming more and more expensive Secondly, Gas handles ETH transfer fees through various methods. Although many users on the current ETH network want to participate in the Ethereum chain, these funds are from third-party hosting service providers or centralized exchanges like Coinbase. These platforms provide solutions developed by professional teams to solve problems. They can provide a very cheap service and do not require anyone’s trust or technical support to ensure their transaction security. Therefore, in order to improve the efficiency of gas usage and ensure the safety and reliability of transactions, it is necessary to interact between multiple wallets, which leads to the phenomenon of high gas fees

Significance of Ethereum mining

According to Cointelgraph, according to the article released by Ethereum miners on January 12, 2018, the current number of bitcoins mined is about 20000. Although Ethereum mining is a very meaningful work, due to its low network efficiency and high cost and other factors, the price of Ethereum has been relatively high, which makes its value far beyond this. As the price of Bitcoin continues to rise, its market value is also gradually increasing.

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