Non-fungible tokens (NFTs) have in many ways transformed the blockchain landscape by helping users tokenize a range of unique items, whether art, music, videos, in-game items for video games, and real-world assets.
Their immense capabilities have drawn much attention from inside and outside the crypto community. However, the enthusiasm starts fading once the term “gas fee” comes into the picture.
The “gas fee,” or fee for processing a transaction over a blockchain network, is a serious damper, even for people who happily shell out millions of dollars to get their hands on their favorite digital collectibles. Essentially, they are paying for the computing energy needed to process and validate transactions on the blockchain.
On most NFT marketplaces, users have to pay the gas fee for buying, selling, trading, and minting NFTs. The overall fee depends on the total number, type, and complexity of computations required to verify each transaction. For instance, if a user wants to mint NFTs faster, the user must pay a higher gas fee.
Amid the meteoric growth of NFTs and the decentralized finance (DeFi) ecosystem, gas fees on several blockchain networks have surged higher. A recent report by Business Insider underscores this reality, highlighting that users have at times paid upwards of $200 in gas fees to buy an NFT worth just $30.
Breaking Down the Gas Fee Component
Every transaction on the blockchain is processed and validated by miners using high-end devices with exceptional computing power. The computational effort required to validate and process each transaction is called “gas.” Miners receive compensation to carry out these computations.
Simply put, the “gas fee” that a blockchain network charges serves as an incentive for miners. “Gas” is an essential regulator to prevent spam within the blockchain network. All computation that occurs over a network is designed to maintain security. In Ethereum’s (ETH-USD) case, gas limits for each computation ensure that random entities or individuals can’t siphon unnecessary amounts of computing power or hijack the network.
Gas fees fluctuate due to underlying network demand, and in Ethereum’s case, gas fees are very high since it is home to many DeFi Apps, protocols, and NFTs. High demand has translated to extreme network congestion, resulting in painfully slow transactions per second and steep gas fees.
A Zero-Fee Alternative Arrives
Gas and scaling limitations have been significant barriers for users who wish to trade NFTs. To address these problems, Mintable, a next-generation NFT minting platform and marketplace, has joined forces with Immutable X, the first Layer 2 scaling solution for NFTs on Ethereum. Mintable’s integration with Immutable X is part of a series of new upgrades designed to make the NFT experience more accessible and richer.
Immutable brings a range of new features to Mintable with Immutable X, including gas-free minting, self-custody, and a seamless user experience for developers and consumers. This allows Mintable users to seamlessly trade over 24 million NFTs that are gas-free and carbon-neutral.
As more and more users embrace NFTs, gas fees could be a significant hurdle for Ethereum. While buyers and sellers normally switch to platforms with lower gas fees and higher scalability, the latest scaling solutions have found a new formula, conceivably relegating sky-high NFT gas fees to the past.
Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.
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