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I just notice that ETH charges $40 for a tx at the time POW + high demand $5-$10 at the time POW + avg low demand And $5-$10 at the time POS + low demand (current 2023) So can you explain more why the fee is still so high?

2 Answers 2

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Switching to Proof of Stake reduced the costs for creating the blocks in the blockchain (by around 99.95%), but itself was not designed for reducing the costs of transacting/writing to the blockchain. POS reduced energy costs, not gas/transaction fees.

From https://ethereum.org/en/roadmap/merge/#accordion-button-:R17b7elaeiau:

Gas fees are a product of network demand relative to the capacity of the network. The Merge deprecated the use of proof-of-work, transitioning to proof-of-stake for consensus, but did not significantly change any parameters that directly influence network capacity or throughput.

With a rollup-centric roadmap, efforts are being focused on scaling user activity at layer 2, while enabling layer 1 Mainnet as a secure decentralized settlement layer optimized for rollup data storage to help make rollup transactions exponentially cheaper. The transition to proof-of-stake is a critical precursor to realizing this.

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Currently sharding is not implemented in Ethereum and there isn't a complete plan to implement sharding yet.

  • None of the current production nodes have any sharding support

  • There is no clear technical plan how to implement sharding

Blockchains that support state sharding include

These blochains have lower fees than Ethereum, so sharding is working correctly, although the usage rates are not 1:1 comparable.

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  • I clearly remember that before the merge, the gas price could drop as low as 1 or 2 GWEI when the network was not busy, but since the merge, I haven't seen any situation where the gas price falls below 10 GWEI or so. Does it have any logical reason? Commented Aug 26, 2023 at 11:01
  • It is a function of supply (does not change) and demand (changes) Commented Aug 26, 2023 at 14:08

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