Ethereum fees on the rise as Dapps gain popularity
In the month of May, 2018, the price of gas had been increasing for the Ethereum transaction network. This was done due to the increase of attractive decentralized games.
What are Dapps?
DApps is an abbreviation for Decentralized applications. A Decentralized App is a type of software program that runs on a decentralized P2P (person to person) network rather than on a single computer. Although both are similar, it differs from smart contracts as it can have any number of participants on all sides of the market and it does not have to be financial.
Among all, Ethereum is a popular development platform that allows the developers to create the Decentralized Apps or DApps which also included games.
Examples of famous DApp games –
- CryptoKitties – This digital pet game created a lot of craze in December 2017. It basically allowed trading as well as breeding of quite rare and unique cats.
- Ether Shrimp Farm – This digital shrimp farm game is also a very popular game currently. Users allow trading of shrimp eggs in order to increase shrimp output.
- Ether Cartel – This is a digital narcotic game. It allows you to control a particular narcotic empire. It’s ranked #1 on few DApp tracking sites with more than 11,000 transactions.
Why did the DApps cause an increase in the Ethereum fees?
Ethereum currently has many DApps on its network and many more which are still under development. These DApps tend to give you a real-world use-cases and among them the most common and dominant ones are the DApps games.
Everyone loves games, hence it’s not much of a shock that these decentralized games are also being loved by many. But although it is a lot of fun but these DApps are causing the network to go under strain due to the increasing number of games on the Ethereum network.
According to Dapp Insight, over 10k Ether has been transacted via Ethereum based DApps in just 24, consuming 14 million in gas.
Also, according to bitinfocharts, the average fees in USD are approaching $0.60, a threefold increase in fees from just two months ago (till May).
Thus, this lead to two kinds of people – Few, who were enjoying the games and having a lot of secure fun. And few more who think that this strain faced by Ethereum as a defeat for it becoming a full-scale adoption. This was thought because if a simple decentralized game could increase the fees and reduce the speed, then a large scale DApp would possibly bring the entire Ethereum network to a standstill.