Ethereum network is seeing record-high due to the presence of smart contracts. This means that the network has evolved from just being a platform for ETH transactions to something much greater.
Ethereum Smart Contracts: Burning too much gas?
The most active smart contract on the network is an Ethereum-based Ponzi scheme. The contract has been growing recently. People have been talking about the contract across social media platform Twitter. People have been sending ETH to this for a short opportunity window for profit gains.
The scheme has been burning around a quarter (27%) of Ethereum network’s gas. Gas is a fraction of Ethereum token that is used by a contract to pay block miners.
The second-largest contract is “Tether USD” that issues and trades USDT coins across the Ethereum network. Tether has a supply of almost two billion (1.95B) tokens on the network.
The contract burns up to 30 percent of the Ethereum network’s gas. This takes up more computational power than decentralized applications with high activity. Usage rate higher than 30 percent causes the transaction price to rise and has been the case with Ethereum. Across last month the transaction fee has risen up 0.27 dollars.
Although the transaction fee is still relatively low, Tether’s consumption of this much computational power means that many users have to wait for their transactions to be included in a block.
Ethereum is a decentralized network without any supervision. This means that any entity with enough ETH can pay for computational power. Therefore the Ponzi scheme with sufficient inflow of ETH tokens has no issue in paying for the computation power.