Transaction Costs
The unpredictability of transaction costs is another problem with the utilization of public blockchains in enterprise applications. This derives from the fact that transaction fees are used to allocate the resources of traditional blockchain networks (i.e., the computing power of miners) across users' transactions, while protecting against DOS attacks by imposing an economical barrier. Miners, by nature of performing the work, can choose which transactions they want to include in a block. As a result, users choose to pay higher miner rewards (in the form of gas costs) per transaction, so that their transactions are prioritized. This creates a feedback loop whereby, in periods of higher network activity, gas costs grow dramatically and unpredictably.
Baseledger's solution to this derives from the fact that the validators of the network are known and held accountable. This means that the transaction cost does not have to serve the role of protecting the network against DOS attacks. Also, since Baseledger uses proof of stake consensus, validators do not have to utilize expensive computing resources to create new blocks. This in turn allows Baseledger's governing body to set transaction fees for fixed periods of time and use these fees for work other than transaction validation. Validators are periodically rewarded based on the number of transactions validated and any remaining fees can be distributed among projects who are working to improve the protocol, thus increasing the value of the whole network.
Last modified 3mo ago
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