Vitalik Buterin, one of the founders of Ethereum, announced that the increasing transaction fees could be dangerous for Ethereum.
Transaction fees on the Ethereum network have increased tremendously over the past few weeks. ETH users are now paying much higher fees than before to operate on the network.
Vitalik Buterin, one of the most popular names in the cryptocurrency industry, talked about these ever-increasing wages and said that they could be harmful to Ethereum. So how?
May Affect Security
In his share of Vitalik Buterin from his social media account, he pointed out how much transaction fees in the Ethereum network have increased recently. Emphasizing that these fees are now almost half as high as the block reward, Buterin explained that this could be negative for the Ethereum network.
Transaction fee revenue is now nearing half as high as block reward revenue. This actually risks making ethereum *less* secure because of https://t.co/Dase8SL30z. Fee market reform (ie. EIP 1559) fixes this; another reason why that EIP is important. pic.twitter.com/eqU3tAMh67
— vitalik.eth (@VitalikButerin) July 21, 2020
Buterin cited here a study by Princeton University. This study, conducted jointly by Miles Caristen, Harry Kalodner, S. Matthew Weinberg and Arvind Narayaman, examined exactly how block rewards in the Bitcoin network affect Bitcoin. This work, which can be adapted to all kinds of crypto money using the block reward system, of course, can be adapted to Ethereum. Referring to this study, Buterin also said that the increase in transaction fees on the network could damage the security of the Ethereum network.