The cryptocurrency market is thriving with the already popular cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and many more in the last few years. It is well-known that crypto investors are highly interested in these cryptocurrencies owing to their faster payment with much lower transaction fees in their digital wallets. Recently, Polkadot and Ethereum 2.0 are grabbing the attention of investors in the cryptocurrency market. It is speculated that maybe there is Polkadot beating Ethereum 2.0 in the transaction fee race for these investors. Let’s explore whether Polkadot is set to beat Ethereum 2.0 in the department of the transaction fee.
Can Polkadot beat Ethereum 2.0 in the transaction fee race?
Polkadot is the rising cryptocurrency holding one of the highest markets capitalizations in the cryptocurrency market. Polkadot or DOT is known as a multi-chain, scalable, and heterogeneous blockchain network technology. It helps to connect individual blockchain networks to each other with an efficient transaction processing speed. This cryptocurrency is popular for processing up to 1000 transactions per second. It is said that the transaction speed of Polkadot is ten times faster than Ethereum. Polkadot is expected to scale to more than one million transactions per second post the implementation of parachains and part threads. The transaction speed of Polkadot is approximately 166.666 tps (transactions per second) which is 8.333 times faster than Ethereum. It is possible for the transaction speed of this cryptocurrency to reach 1 million tps in the nearby future of the cryptocurrency market.
Ethereum 2.0 is popular for being the successor to Ethereum and includes multiple upgrades that hold the power to dominate Bitcoin. Ethereum is currently the second most popular cryptocurrency in the cryptocurrency market. Ethereum 2.0 has abandoned Proof-of-Work, introduced sharding for enhancing efficiency, and replaced EVM with eWASM. It is expected to have a transaction speed of 100,000 tps. Investors have been experiencing a problem in the speed of the network as well as the high transaction fee. The Ethereum ecosystem needs to increase the number of transactions per second from 15 to 45 approximately.
Polkadot processes through parallel transactions with infinite scalability that is very difficult to match it the projections are realized. The average transaction fee of Ethereum 2.0 is at the level of 6.498. Meanwhile, Polkadot enables users to send transactions at zero dollars without any transaction fee. This is known as the zero-cost blockchain transaction fee in the ecosystem of Polkadot. Polkadot utilizes a weight-based transaction fee model while Ethereum 2.0 uses a gas-metering model with a block. Ethereum 2.0 users can select how much gas they want to pay to make a seamless transaction. The more gas they pay, the better transaction they will get access to. Ethereum 2.0 is driven by the cryptocurrency market while Polkadot is driven by computer algorithms with a constant transaction fee on the size of transactions.
If there are consistencies in these stages of development of Polkadot and Ethereum 2.0, it is speculated that investors can watch Polkadot beating Ethereum 2.0 in the transaction fee race with the top tier and highly competitive speed of transactions per second.
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