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7 Comments

Is it possible to build a cryptocurrency that does not have any transaction fees.

I dont think its right that when you want to send someone your money you have to pay in order to be able to do that.

  1. 3

    Check out Nano by far one of the best cryptos no one talks about. It has 0 fees.

    Don't currently own any.

    1. 1

      Yes, this is the one that already does it.

      Only thing is that everyone talks about it. (but most people still tend to ignore it).

  2. 1

    In blockchain and decentralization, everything is based on incentives.

    Why do people mine to secure the blockchain instead of attacking it?

    Because they are rewarded in the crypto they are mining. The incentive is the coin. The more they mine, the less likely they are to try to crack it and make it worthless.

    So why "someone" would process your transaction?

    Fees are an incentive; the more you pay in fees, the more incentive to process your transaction. Paying 0 fees means 0 reasons to process your transaction.

    So, can you build a cryptocurrency without transaction fees?

    There is nothing fundamentally impossible here,
    the question is: "how do you incentivize the act of processing transactions?"

    I think any solution will rely on some sort of "good behavior points."
    A "user" will send some of these points to a "transaction processing specialist."

    Which comes back to... sending a transaction fee to a miner.

    But that last part is just my theory.

  3. 1

    I mean like it's possible, except it probably won't last long. There must be some way for computations to verify the blockchain to run. In most cryptocurrencies there is a gas fee which is given to the first to verify it or something so that there is an incentive to actually help verify the blockchain. Unless you find another really good incentive, I don't think it would be possible to have a viable cryptocurrency without gas fees.

    Though, I don't have the most amount of knowledge about cryptocurrency so I am probably wrong.

  4. 1

    When you buy something with your credit card the business has to pay a merchant fee to the credit card processors. It costs money to manage all the infrastructure for digital finance. Credit card processors built the services to process these payments because they are incentivized to make a profit. They provide the infrastructure to make credit card payments in exchange for a small fee.

    The same is true with crypto. Miners in a block chain act as the "credit card processors", without them the blockchain would not work and you couldn't make any transactions. To incentivize them to process or mine the transactions they take a fee. Why else would they use their computing power/electricity to process the transactions in the block chain.

  5. 1

    I think it's not possible.

    Crypto system generally requires high amount of mathematical computation to keep the public ledger authentic and valid. This mathematical computation requires computing power which translates to electricity and then to our bills. Unless electricity becomes completely free, I don't think we will be free of transaction fees.

    1. 1

      PoW vs PoS.

      PoW requires a ton of energy.

      PoS doesn't. Coins like Nano are free to send and receive instantly.

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