Ethereum’s Infura introduces tool to avoid high transaction costs
A code change was enacted in August to the Ethereum blockchain, called EIP-1559. It was designed to prevent users from paying more than they had to in transaction costs. But it doesn't always do that, at least not when the network is at peak usage levels.
Infura is a cloud-hosted node network that many developers use to connect to the Ethereum blockchain. Infura has launched a new tool that covers up the back-holes of EIP-1559.
Decentralized applications that are built on top of blockchain are constantly interacting with it. When they do, they pay a toll for using its infrastructure. But the amount of toll varies depending on how busy the network is. The more the traffic, the higher the fee.
EIP-1559 solved some of this problem. The code change had doubled the amount of gas to be included in each new block of transaction. Gas is a unit representing the computing cost for a Blockchain action, used to calculate the transaction fee. It also created a base fee to return to the Ethereum network, thus standardizing the fee structure. A lot of people demanded to allow adding additional tips for their transaction to be processed quickly.
As EIP-1559 went live as part of Ethereum's London network upgrade, transaction overpayment has fallen due to the base fees. But users can still add a small amount as a tip to miners to ensure their transaction gets processed quickly. But when the amount of transactions taking place simultaneously is high, the fee structure returns the tipped amount. And such a situation needs to be taken into consideration. Here's where Infura Transactions stands out from the crowd.
Infura uses an algorithm that optimizes gas prices to adjust the tipped amount in real-time. It eliminates the dropped transactions, which occurs when a user hasn't included the appropriate fee. It is also automated so that users don't have to manage much post-transaction. Lastly, it allows for transactions without Ethereum, which is the cryptocurrency used for all network fees.
CBW - External Analyst