Overview of analysis:

In this dashboard, the GAS tracker on various blockchains has been developed. In this analysis, the following blockchains have been selected to find out the metrics related to the Gas usage and these chains are parts of this dashboard:

• Ethereum
• Algorand
• Solana
• Flow
• Osmosis
• Near
• Optimism
• Polygon

The explanations related to each network have been placed in the first section of each part.

Methodology:

The data provided by Flipside has been used to handle this analysis.

• Used table:

  [blockchain].core.fact_transactions for each blockchain has been utilized to handle this analysis

• Metrics:

  • Total amount USD of gas spent on the chain in the last 30 days.
  • Average cost of gas in USD per $1,000,000 of liquidity transferred on each chain 30 days
  • Average block gas price hourly and daily
  • The top 10 addresses on each chain that spend the most on gas in the past month
  • Daily amount spent on gas by chain tracked over the last 30 days
  • Chart gas spend to network token price
  • Minimum, maximum and Median of gas usage in USD
  • Average gas usage in USD per day

This analysis is done for the past month and unpdate in the daily basis.

About GAS usage:

Cryptocurrency transaction fees were originally introduced as an anti-spam tool in Bitcoin, but today they have become one of the most fundamental features of the blockchain network. In the Ethereum blockchain, the fee of transactions is determined by a concept called Gas, which is a small fraction of the ETH digital currency. This blockchain offers more complex features than the Bitcoin blockchain, such as smart contracts and decentralized applications, so transaction fees on the Ethereum blockchain play a more important role in the survival of the network.

Currently, there are many blockchain projects, each charging different fees as cryptocurrency transaction fees. There is a simple rule regarding the determination of fees for transactions in blockchains, and that is "the higher the efficiency of the network, the lower the cost of transactions." Considering that some networks can only put a limited amount of data in each block, as a result, the work of miners or validators is limited to the number of transactions for which they have enough space.

When many users simultaneously send their cryptocurrency transaction requests to the network, the demand for block space increases and more transactions await confirmation. In some cases, the demand for block space becomes so high that the networks become congested and transaction fees increase dramatically for a period of time.

On the other hand, the larger the number of transactions in the network, the higher the value of these transactions, the higher the fee is defined for them.

Part 1: Ethereum blockchain

Ethereum is a platform based on blockchain technology, which was created to remove middlemen from various things such as financial services, social networks and even computer games. Ethereum is a decentralized network, no government body oversees it and it is not controlled by any person or intermediary. The decentralization of the Ethereum network has made this blockchain resistant to events such as hacking, network failure due to equipment failure, etc.

Ethereum runs on a decentralized computer network, called a distributed ledger or DLT (Distributed Ledger Technology). DLT itself has many sub-branches, blockchain being one of them. Blockchain manages the data of transactions and blocks. Computers that are responsible for processing transactions and building new blocks in blockchain networks are known as nodes.

Findings:

• The Ethereum blockchian has the highest paid fee in USD. Also, the average paid fee in USD per transaction is high for Ethereum.
• By increasing the price of ETH, the daily paid fee in USD decreased because users execute less transactions due to the gas price.
• The highest paid fee per transaction in the past month occurred on November 8 with around 7.47 USD.

Part 2: Algorand blockchain

Algorand is a decentralized network designed to solve the triple problem of blockchain (speed, security and centralization). Algorand uses a Proof of Stake (PoS) based consensus mechanism. Algorand is able to host decentralized applications due to its support for smart contracts. Algorand allows developers to use the Algorand Standard Asset Protocol (ASA) to create new tokens or even transfer existing tokens to the network's ecosystem. For example, stablecoins such as USDT and USDC are also available in the Algorand blockchain under the title of ASA, and they have a higher throughput and a much lower transaction fee than the common practice of trading them in Ethereum. It should be noted that with the development of the central bank cryptocurrency (CBDC) launch process and the search of these banks to find networks that have the ability to host this currency, Algorand has become one of the suitable options for this issue and currently The CBDC is hosted by the Bank of the Marshall Islands. This protocol has a unique two-layer structure. The base layer of this protocol supports smart contracts, asset creation and atomic transactions between assets. All these processes take place in Algorand blockchain layer 1, which helps to maintain security and compatibility. Algorand's second layer is intended for the development of smart contracts and more complex decentralized applications.

Findings:

• Algorand network is one of the cheapest chains from the transaction fee point of view.
• On Algorand ecosystem, the transaction fee in ALGO is consistent but with changing the price of ALGO token, the paid fee in USD changed over time.
• The average paid fee in USD on Algorand is very very small compared to the Ethereum blockchian.

Part 3: Solana blockchain

Solana is an open-source, public blockchain that supports smart contracts, peer-to-peer tokens (NFTs), and a wide range of decentralized applications. Solana network uses Proof of History (PoH) protocol. It is not proof of the history of consensus mechanism. Rather, it is part of Solana's consensus mechanism, Proof of Stake (PoS). PoH contains the timestamp of transactions added to Solana blocks. For this reason, it is also called a decentralized clock or a decentralized time source (Decentralized Clock). A new block is created in Solana every 400 milliseconds. In Ethereum this number is 15 seconds and in Bitcoin every 10 minutes. One of the biggest challenges in distributed networks is agreeing on the timing and order in which events occur. Because the nodes in the network cannot trust the timestamp received from other nodes. Solana is trying to solve this problem by creating a secure and encrypted time source through proof-of-history. POH is a verifiable delay function (VDF) that requires a certain number of consecutive steps to evaluate, but ultimately its output is reliable. Solana validator nodes calculate the time using SHA256 time-lapse encryption and continuously hash the VDF function.

Findings:

• Solana blockchain has the same manner with Algorand and has stable transaction fee in SOL but paid fee in USD changed by SOL price over time.
• The Solana network obtained about 6280 USD per day from transaction fees over the past month.
• The highest paid fee on Solana happened on November 9 due to the high number of transactions on that date.

Part 4: Flow blockchain

Flow Dapper protocol is a new blockchain for the next generation of applications, games and digital assets. It is a fast, secure and convenient protocol for blockchain developers. FlowDepper is designed to expand scalability without the need for sharding and process transactions quickly and at low cost, which is perfect for decentralized applications (Dapps) such as NFT markets and blockchain games. Flow uses a Proof-of-Stake (POS) consensus algorithm, which requires validators or approvers of transactions to stake a certain number of FLOW tokens in order to participate in the network.

The working method of Validators is also different from other blockchains. The Flow network has divided the tasks of the approvers into four different types of nodes; Consensus, Verification, Execution and Collection. All these nodes participate in confirming each transaction. The creators of the Dapper project believe that separating the tasks of the nodes makes transaction processing much better and more efficient than other blockchains; This is an alternative method for sharding or dividing space and computing needs among all nodes. Flow has an upgradeable smart contract system; That is, it allows Smart Contracts to be deployed in beta version and then their bugs are fixed or strengthened and then they become final and unchangeable and reach public use.

Findings:

• The Flow blockchain has low transaction fee compared to Ethereum and Solana as can be seen.

• The maximum paid fee in USD on Flow blockchain occurred on November 2.

• The highest average paid fee per block in USD happened on November 4 over the past month.

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Part 5: Osmosis blockchain

Osmosis is an advanced Automated Marketer Protocol (AMM) that allows developers to build custom AMMs with robust liquidity pools. Osmosis is built using the Cosmos SDK and uses the Inter-Blockchain Communication (IBC) feature to enable cross-chain transactions. The Cosmos ecosystem follows the "Blockchain as Decentralized Program" architecture; This means that Osmosis is a blockchain connected to Cosmes Hub, which is also a decentralized exchange. The incentives of most active projects in Cosmos are focused on Validators and Delegators; But Osmosis is trying to provide the interests of all participants in the network and those who make deposits. The nodes that have staked the most amount of Osmosis network token are selected as validators

Findings:

• The Osmosis network obtained about 17k USD from transaction fees over the past month.
• The highest daily paid fee on Osmosis network happened on October 28 Also on that date the highest average paid fee per block occurred on daily basis.
• The trend of average paid fee in USD decreased since November 6 and reached 0.001 USD per transaction in the last days.

Part 6: Near blockchain

NEAR is a public, sharded, extensible blockchain network based on the proof-of-stake (POS) paradigm. Developers can launch their own decentralized applications using this platform. The current Ethereum chain and most of the first layer solutions, such as Solana and Avalanche, have not been able to completely solve the scalability problems due to the increase in the number of transactions and the requirement of their consensus mechanisms to confirm each transaction by all nodes. The low scalability of these networks leads to an increase in the cost of transactions; Because with the increase in the number of users, the delay in the approval of transactions increases and the fee for doing them increases.

To avoid this problem, the NEAR protocol has provided the NightShade solution. Nightshade is the main technology of NEAR blockchain. In the NightShade solution, sharding is applied to all blocks individually instead of the main chain. In this method and because all the blocks are divided between the nodes of the NEAR network, the scalability of this network increases significantly. The mechanism of NightShade is that instead of sending transactions individually to each of the network nodes, they are divided among all nodes and run in parallel.

Findings:

• Over 66k USD have been paid into the Near blockchain as transaction fee over the past month.
• The average paid fee per transaction on Near blockchain is lower than Ethereum chain but higher than Algorand blockchain.
• The average paid fee in USD on daily basis shown the decrement since November 8 as can be seen.
• The Oracle.sweet has been paid about 29k USD as fee over the past month.

Part 7: Optimism network

The Optimism Network or Optimism is a second layer solution, which was created to solve the scalability problems of the Ethereum network. Optimism in the word means optimism, and the Optimism network was created based on this approach. The Optimism network uses Optimisitic Rollup to increase scalability. In this solution, the Optimism network collects and executes transactions in its network and sends them in a compressed form to the Ethereum network, causing the scalability, speed of transactions and their fees to be significantly reduced. This network uses Optimistic Rollup technology. As the name of this solution suggests, its basic principle is based on trust and honesty. In Optimistic solutions, it is assumed that all the information and transactions carried out by the network validators are correct and the validators perform the task assigned to them correctly. The Optimism network uses several different parts in its structure,

Findings:

• On the Optimism network, the highest paid fee in USD over the past month occurred don November 8 with over 184 USD.
• On that date (November 8) the transactions on Optimism network were more expensive than other days as can be seen from Average paid fee in USD.
• Like Ethereum network, the total paid fee in Daily basis has negative correlation with OP price and by increasing the price of OP the paid fee in USD decreased.

Part 8: Polygon network

Polygon, formerly known as Matic Network, is a protocol and framework for building and connecting blockchain networks compatible with Ethereum. This protocol tries to solve some of Ethereum's major limitations, including its throughput, poor user experience, and lack of community governance, using a new on-chain solution. Rather than being a simple scalability solution like the previous Matic network (which uses a technology known as plasma to process off-chain transactions before finalizing them on the Ethereum main chain), Polygon is fully designed for cross-blockchain collaboration. Is. Through Polygon, developers can launch pre-defined blockchain networks with features tailored to their needs. Polygon is built to facilitate a future where different blockchains no longer operate in isolation, but instead as networks that are used in a broader, interconnected space.

Findings:

• The transaction fee on Polygon has been paid in its native token MATIC and the price of MATIC is one of the main factors on paid fee.
• Over 3.4 million USD has been paid as transaction fee on Polygon network over the past month.
• The November 8 has the highest paid fee in USD with about 574k USD and average paid fee in USD per transaction on that date was about 0.2 USD.

Conclusion:

Now lets drawn a conclusion from aggregation of outcomes on gas usage of various blockchains:

• As can be seen, the Ethereum blockchain has the highest paid fee in USD over the past month. This happened because of two major factors including highest number of transactions and high average transaction fee in USD.
• Its not acceptable to compare the chains from total amounts point of view but the best way is to make comparison by average paid fee per transaction.
• The most expensive blockchain to execute a transaction is Ethereum blockchain and the numbers related to transaction fee in USD are far larger than other chains.
• After Ethereum, the Polygon, NEAR and Osmosis takes the next ranks of most expensive blockchains respectively.

Useful links:

• Blockchains
• About Gas fee
• About Gas fee 2

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani