[{"id":"6418085169c3cb00017e5297","uuid":"a272dce6-2a3f-4079-9112-57125385b499","title":"Sony Introduces Cross-System NFT Trading Framework","slug":"sony-cross-system-nft-trading-framework","html":"

Hands in the air for gamers as Sony, the official maker of the PlayStation gaming console, introduces a new web 3.0 framework that allows players to buy and sell digital assets (NFTs) across different gaming platforms.

According to a patent filed by Sony in September 2022 and published on March 16, 2023, the new framework will allow users to send gems, weapons, and other in-game assets collected on their game platform to players on other platforms. Hence, if you've acquired a new gun or upgraded your weapon in Apex Legends on PlayStation 5, for instance, you can now share or sell that to a friend playing a similar game on Xbox Series X using Sony's new whip.

In citing the reason behind this move, a statement extracted from Sony's patent summary says:

💡

\"As recognized herein, in some applications such as computer/video games, an NFT might represent the artwork or an asset in the game (such as a character or weapon or other game assets), but current systems are technologically inadequate for the owner to use the asset across different games and/or platforms. Accordingly, as further recognized herein, the functionality of the game may be enhanced by enabling gamers and/or spectators to exclusively use the asset and possibly transfer its rights to others via NFT.\"

Besides selling in-game collectibles, Sony also says players can sell off their levels or scores to other players regardless of their platforms. The recipient of the sold level can then continue from where the seller left off. In another usage example, Sony also says players who won a boss in a game can transfer or sell and use the hunter-damaging weapon in another game type (cross-game and cross-platform).

Interestingly, Sony also says in-game NFT transfer can be trans-generational; \"In some examples, the NFT can be used cross-generationally (e.g., from PS4 to PS5).\"

The possibilities seem endless, and we all look forward to trying out this new feature when it finally unrolls.

However, Sony hasn't released an official statement about implementing the initiative. This is still only a published patent and doesn't imply implementation. So you might not expect such functionalities in gaming yet.

Although Sony had earlier implemented a digital collectible rewards system for players in September 2022, according to the PlayStation blog, it doesn't back the innate picture of NFTs as rewards aren't sellable.

","comment_id":"6418085169c3cb00017e5297","feature_image":"https://moon.ly/blog/content/images/2023/03/Hand-holding-a-game-pad.jpg","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2023-03-20T07:16:33.000+00:00","updated_at":"2023-03-20T16:26:41.000+00:00","published_at":"2023-03-20T12:23:57.000+00:00","custom_excerpt":"Hands in the air for gamers as Sony publishes a new web 3.0 framework that allows NFT exchange cross-platform. ","codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"url":"https://moon.ly/blog/sony-cross-system-nft-trading-framework/","excerpt":"Hands in the air for gamers as Sony publishes a new web 3.0 framework that allows NFT exchange cross-platform. ","reading_time":2,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":"Hand holding a game pad","feature_image_caption":null},{"id":"64121ee669c3cb00017e51bc","uuid":"eafcc498-8a7f-4e2b-a7dc-b2c5d0f40287","title":"Moonly Is Testing a Buy Button: Releases Holder Verification Tool","slug":"moonly-is-testing-a-buy-button-releases-holder-verification-tool","html":"

As Moonly NFT releases its verification tool, it's now testing a buy feature on its NFT aggregator and analytics tool test net.

Stefan, Moonly's founder, revealed in a tweet on March 15 that he had been self-buying some of the firm's NFTs because they're testing the feature that allows users to buy NFTs directly from Magic Eden and Hyperspace.

FYI,
If you are wondering why @kinder_moonly is buying and selling with himself, it's not wash trading, but actually testing in production the "Buy button*", where u can buy NFT directly from Moonly, using MagicEden and HyperSpace API.
A step closer to Moonly sniping bot ! pic.twitter.com/arLfaerKAR
— Moon.ly ┇ NFT Tools (@moonlynft) March 14, 2023

\n\n

The team didn't give further information on this feature. But the buy feature is one of the many secret additions the team has in store for Moonly NFT holders and the entire NFT community.

Moonly's verification tool went live on March 6, 2023, to compete with Matrica by adding more functionalities. All you need is to log on to Moonly and relink your wallet to verify your role. The verification tool isn't limited to Moonly NFT holders only. Stefan says the firm will offer its verification tool to other projects.

Are you a Moonly holder?

Yes?

1. Go on https://t.co/CPLm8gQd9K
2. Re-link your discord

And some magic will happen when you will go back on our discord
— Moon.ly ┇ NFT Tools (@moonlynft) March 10, 2023

\n\n

In a Discord server announcement, the founder asked the community to \"Please visit https://moon.ly/ and log in. Then you should get a popup to re-link Discord again in your profile, and also the wallet that holds your Moonly NFT in case you didn't. You should get @Holder by Moonly Bot role after you re-link Discord, and later on, I will introduce other roles for people who hold more NFT or even specific traits. It's gonna be fun.\"

Among other perks, Moonly says it's venturing into staking-as-as-service and a tokenization-as-as-service. Stefan revealed this in an announcement on Discord; \"we are releasing a simple but useful no-code Token Creation Tool that will come in handy for many upcoming projects.\"

Although Moonly has been in the Solana NFT business since it launched, it's also extending its web into the Ethereum blockchain. So expect to start getting upcoming and current Ethereum NFT updates soon.

","comment_id":"64121ee669c3cb00017e51bc","feature_image":"https://moon.ly/blog/content/images/2023/03/Moonly-landing-page.png","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2023-03-15T19:39:18.000+00:00","updated_at":"2023-03-16T15:30:43.000+00:00","published_at":"2023-03-16T13:45:17.000+00:00","custom_excerpt":null,"codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"url":"https://moon.ly/blog/moonly-is-testing-a-buy-button-releases-holder-verification-tool/","excerpt":"As Moonly NFT releases its verification tool, it's now testing a buy feature on\nits NFT aggregator and analytics tool test net. \n\nStefan, Moonly's founder, revealed in a tweet on March 15 that he had been\nself-buying some of the firm's NFTs because they're testing the feature that\nallows users to buy NFTs directly from Magic Eden and Hyperspace. \n\n> FYI,\nIf you are wondering why @kinder_moonly\n[https://twitter.com/kinder_moonly?ref_src=twsrc%5Etfw] is buying and selling\nwith himself, it's not wa","reading_time":2,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":"Moonly landing page","feature_image_caption":null},{"id":"6411980869c3cb00017e51b1","uuid":"db764a95-0462-4324-bf82-e2318c28961d","title":"Moonly weekly progress update #40","slug":"moonly-weekly-progress-update-40","html":"

I want you to meet Kai \"The King\", a wonderful person that will help Moonly grow in various aspects. After I saw that great article he wrote about Moonly, that instant bought me because I felt he understood what Moonly is, like he is a part of our hardcore team.

You can read his old article about Moonly here: https://medium.com/@0xkai/moonly-simple-yet-brilliant-nft-analytical-tools-1d9e39e52731

I like how he approaches the topic by carefully taking notes and doing in-depth research.

Kai will be the voice of Moonly and host Twitter Spaces once per week, where we will bring other upcoming or minted projects as a guest and do some AMA.
He will help by joining other Twitter spaces with me and advocating and talking about Moonly.
Kai will help with writing up content for Moonly, blog posts, WP, and even announcements sometime.
He will do a lot of research and provide critical and honest feedback on some of our ideas.
Kai will be part of our community and answer some questions when he feels it.

Overall, Kai will be a good addition to the Moonly team and our upcoming project!

Weekly developer progress:

Reviving Big BD scraper and cleaning up the DB schema
Fixing few bugs for Moonrank scraper
Refactor the toggle NFT visiblity script through the new chains flag
Experiment with the Moonrank scraper
Experiment with the buy button on the live feed
Trying to add some library to not depend on page level components
Fixed a bug in Twitter scraper
Added switches to disable Live feed on test servers
Deploy fixes to remote logging on production
Included chain filter on monitor page
Included year with mint date on production
Making admin \"get suggestion\" dynamic for published & auto-created both

Holder Verification Bot (HVB):

Implemented \"test message\" feature on HVB
Completed and tested \"send test message\" feature on HVB
Investigated different issues in HVB production
Started working on multi-thread wallet-checker
Wrote the multi-thread feature for wallet-checker
Implemented \"Any trait\" value
Investigated production issue of HVB related to metadata scraper
Deployed \"default Any\" trait on production

Work on the Ethereum collections market data:

Found a solution for collection address
Discovered why the volume showing NaN on the NFT Chart
Tried to fix the superuser DB issue
Fixed a bullMq lock duration issue on eth scraper
Fixed a production suggestion issue

Staking (Locking):

Working on Point Reward System and Staking Merging
Doing research for account migration
Got a understanding how to structure accounts
Fixed bug and refactored Reward CountUP incrementor
Added incrementor for Total Reward
Implemented Dynamic Stake Pool
Made fronted changes for Dynamic Stake Pool
Create special Staking Access for Moonly author
Fixed stack overflow issue on collection info

Check out our latest blog posts:

https://moon.ly/blog/meta-is-ending-support-for-nfts/

https://moon.ly/blog/amazon-is-building-an-nft-marketplace/

https://moon.ly/blog/crypto-gas-fee-explained/

Upcoming NFT collections:

https://moon.ly/nft/oogy

https://moon.ly/nft/the-bastards

https://moon.ly/nft/antilia-alpha-club-2

https://moon.ly/nft/anti-universe

Minted projects worth mentioning:

https://moon.ly/nft/blocksmith-labs

https://moon.ly/nft/claymaker

https://moon.ly/nft/jelly-rascals

https://moon.ly/nft/lily

","comment_id":"6411980869c3cb00017e51b1","feature_image":"https://moon.ly/blog/content/images/2023/03/Thumbs-for-the-blog--40.png","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2023-03-15T10:03:52.000+00:00","updated_at":"2023-03-15T10:07:08.000+00:00","published_at":"2023-03-15T10:07:08.000+00:00","custom_excerpt":null,"codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"url":"https://moon.ly/blog/moonly-weekly-progress-update-40/","excerpt":"I want you to meet Kai \"The King\", a wonderful person that will help Moonly grow\nin various aspects. After I saw that great article he wrote about Moonly, that\ninstant bought me because I felt he understood what Moonly is, like he is a part\nof our hardcore team.\n\nYou can read his old article about Moonly here: \nhttps://medium.com/@0xkai/moonly-simple-yet-brilliant-nft-analytical-tools-1d9e39e52731\n\nI like how he approaches the topic by carefully taking notes and doing in-depth\nresearch.\n\n * Kai","reading_time":2,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},{"id":"641038a269c3cb00017e500d","uuid":"631a5cf7-c14b-4000-b164-5e0203a06b9c","title":"Meta Is Ending Support for NFTs","slug":"meta-is-ending-support-for-nfts","html":"

Meta is winding down its support for digital collectibles (NFTs) to pursue other ways to help creators and businesses.

The new development appeared in a recent tweet by Stephane Kasriel, Meta's Head of Commerce and Financial Technology—who cited a priority shift as the sole reason for dumping the long-known NFT integration.

According to an extract from Stephane's tweet, \"Some product news: across the company, we're looking closely at what we prioritize to increase our focus. We're winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses.\"

We learned a ton that we’ll be able to apply to products we’re continuing to build to support creators, people, and businesses on our apps, both today and in the metaverse. [3/5]
— Stephane Kasriel (@skasriel) March 13, 2023

\n\n

Meta's digital collectible feature has been around since June 2022 and spread full-fledge across 100 countries—later in July 2022. It was a valuable marketing whip for NFT creators and collectors, as they could link their crypto wallets and showcase their digital assets on Facebook and Instagram at no cost.

Facebook changed its name to Meta in 2021 to show its strong lean toward the web 3.0 wall. And it was exciting to see Meta's announcement of its venture into digital collectibles in May 2022. The same document got an update in November, announcing that people can now sell NFTs \"on and off Instagram.\" However, this new feature was only available to a selected few.

Mark Zuckerberg, Meta's CEO, also mentioned in a plenary on March 15, 2022, that they plan to turn Instagram into an NFT marketplace, as reported by NFTnow. Unfortunately, it looks like the firm is shifting grounds now.

According to Meta's announcement, \"Creators will soon be able to make their own digital collectibles on Instagram and sell them to fans, both on and off Instagram. They’ll have an end-to-end toolkit — from creation (starting on the Polygon blockchain) and showcasing, to selling. People can easily support their favorite creators by buying their digital collectibles directly within Instagram. We’re testing these new features with a small group of creators in the US first, and hope to expand to more countries soon.\"

Why Is Meta It's Ending NFT Parole and What Happens After?

Although Kasriel didn't state specific reasons for this new development at Meta, it looks like Meta's priority is shifting, as mentioned earlier. So we're not sure why this is happening. But for what it's worth, it doesn't look good for creators and collectors who look forward to what Meta's NFT venture will bring to NFTs in the nearest future.

However, while questioning the state of Meta's Metaverse project, The Guardian pointed out that Meta's Metaverse department, Reality Labs, went short of $3.7 billion in the past three months from November 2022, when it laid off 13% of its workforce.

No one is entirely sure what happens next. But we want to believe Meta isn't shifting focus from the Metaverse idea.

However, as reported by DailyMail, Meta plans to cut thousands of jobs further this year, which will affect employees working on wearable devices in its Metaverse division. After all, Meta might be holding back from its Metaverse project—since the projected layoffs target Reality Labs. But this is still uncertain and subject to speculations.

Thus, it won't be surprising to see Meta taking down digital collectible features across products, including Facebook and Instagram, as time rolls.

","comment_id":"641038a269c3cb00017e500d","feature_image":"https://moon.ly/blog/content/images/2023/03/The-metaverse-logo.jpeg","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2023-03-14T09:04:34.000+00:00","updated_at":"2023-03-14T11:18:56.000+00:00","published_at":"2023-03-14T11:14:20.000+00:00","custom_excerpt":"Meta is winding down support for digital collectibles. Why and what happens next?","codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"url":"https://moon.ly/blog/meta-is-ending-support-for-nfts/","excerpt":"Meta is winding down support for digital collectibles. Why and what happens next?","reading_time":2,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":"The Meta logo","feature_image_caption":null},{"id":"64087bad69c3cb00017e4e1d","uuid":"1f64a8b8-e569-4d2e-9b88-09ef5d1442e1","title":"Amazon Is Building an NFT Marketplace","slug":"amazon-is-building-an-nft-marketplace","html":"

As gathered by Yahoo! Finance, Amazon, the largest retail website, is launching its NFT marketplace in April, and it will include options to link physical products with digital collectibles.

Although there has not been an official announcement from Amazon, you can trace this development back to Ava Labs' January 11 broadcast in a tweet that it's partnering with Amazon \"to help enterprises and governments build compliant blockchain solutions.\" Ava Labs is the brain behind the Avalanche network, one of the blockchains that support NFTs.

We’re joining forces with @Amazon to help enterprises and governments build compliant blockchain solutions. #AWS makes it easier to launch and manage #Avalanche nodes, giving the network more strength and flexibility for developers.https://t.co/vgabB5c6Ya
— Ava Labs 🔺 (@avalabsofficial) January 11, 2023

\n\n

Andy Jassy, Amazon's CEO, hinted about a possible push into NFT in his Squawk Box interview with CNBC on April 14, 2022. In the interview, Andy Jassy said Amazon isn't \"probably close to adding crypto as a payment mechanism in our retail business.\" But when asked if he sees Amazon selling NFTs, he replied, \"I think it's possible down the road.\"

"I expect that #NFTs will continue to grow very significantly. We're not probably close to adding #crpyto as a payment mechanism in our retail business. But I do believe over time you'll see crypto become and it's possible ... it's possible down the road," says $AMZN CEO @ajassy. pic.twitter.com/6q6HVolzgU
— Squawk Box (@SquawkCNBC) April 14, 2022

\n\n

What to Expect From Amazon's Rumored NFT Marketplace

Amazon's venture into web 3.0 will be a big game changer for existing marketplaces considering its large user base.

Reports say the NFT marketplace will kickstart with 15 NFT collections and will be an NFT tab on Amazon's website, only accessible to US-based Prime users before extending its grip to more regions.

Zippia puts the volume of US adults using Amazon Prime at about 70%. So the initiative is exposed to a significant number of Amazon's user base.

The NFT market is one of the most dynamic economic drivers of web 3.0. And for what it's worth, it's still one of the most porous and least regulated markets.

Amazon's sketchy way of beating the competition is simple. Currently, traders can only buy NFTs using chain-associated tokens. However, rumor says Amazon's NFT marketplace will allow buyers to link physical goods with digital products, and they can buy NFTs using fiat via their debit or credit cards.

So you can still get an NFT from Amazon even if you don't have a crypto wallet like Phantom or Metamask. Although we're not sure how purchases will work, speculations are that you might get a digital copy of a physical product you purchase—if linked to a digital collectible.

","comment_id":"64087bad69c3cb00017e4e1d","feature_image":"https://moon.ly/blog/content/images/2023/03/Amazon-website-on-a-computer-screen.jpg","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2023-03-08T12:12:29.000+00:00","updated_at":"2023-03-08T14:17:22.000+00:00","published_at":"2023-03-08T14:12:32.000+00:00","custom_excerpt":"The NFT market expects more dynamism as Amazon is rumored to venture into web 3.0 with an NFT marketplace later in April. ","codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"url":"https://moon.ly/blog/amazon-is-building-an-nft-marketplace/","excerpt":"The NFT market expects more dynamism as Amazon is rumored to venture into web 3.0 with an NFT marketplace later in April. ","reading_time":2,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":"Amazon website on a computer screen blended with Bitcoin logo and a paper currency","feature_image_caption":null},{"id":"64070c2869c3cb00017e4e0f","uuid":"e87d212a-4ec0-4133-86fd-d57cb7053a55","title":"Moonly weekly progress update #39","slug":"moonly-weekly-progress-update-39","html":"

Holder Verification Bot (HVB) is in production for some time and now the real testing begins.
Very soon the other roles will be introduced for holders with more than one NFT or even specific traits!
We are gonna start offering to other projects Holder Verification Bot as well as Staking as a Service, Token creation, and Sales Bot which also arrive very soon!

Weekly devs progress:

Experiment with catching a transaction and matching it with the production database
Finished and tested user roles
Figuring out the data structure on the sol-sniper live feed, and the execution flow
Working on app performance and optimization analysis
Fixing the bug in top section of top volume changes
Analyzing every DB calls with explain statement
Reviving Big BD scraper and cleaning up the DB schema

Holder Verification Bot (HVB):

Investigate how to restructure the HVB
Solved an issue on RPC-proxy
Worked on discord link, log in, merge account
Implemented test message feature on HVB
Done some testing on various servers
Setup and deployed Holder Verification Bot to production

Work on the Ethereum collections market data:

Added Opensea & Etherscan icons inside eth NFT details page
Removed total listed count API call
Reduced ETH update scheduler query to reduce some latency
Made the stat chain icons dynamic
Working on a solution for the Meilisearch issue
Discovered why Opensea & Etherscan URLs can't merge

Staking (Locking):

Added global state update endpoint in smart contract
Added global state update form and error handling
Tested account migration with real test case
Created API for getting user stake count
Successfully made Shared Library for staking and backend
Fixed \"connect wallet\", now it will redirect to the login page
Removed Switch and renamed Active to Checkbox and Staking Active
Allow Staker to un-stake NFT and claim the reward when staking is disabled for that collection
Deployed to testing server and fixed some build issues
Tested Stake Count Authentication
Added a popup with an un-stake option when there isn't enough token in the collection vault
Fixed info hiding issue on the token management section

Check out our latest blog post: What Is Tokenization-as-a-Service in Crypto?

https://moon.ly/blog/what-is-tokenization-as-a-service-in-crypto/

Upcoming NFT pages:

https://moon.ly/solana

https://moon.ly/ethereum

https://moon.ly/polygon

https://moon.ly/near

https://moon.ly/aptos

Minted projects worth mentioning:

https://moon.ly/nft/famous-fox-federation

https://moon.ly/nft/elixir-pfp-collection

https://moon.ly/nft/ggsg-galactic-geckos

https://moon.ly/nft/solana-monkey-business

","comment_id":"64070c2869c3cb00017e4e0f","feature_image":"https://moon.ly/blog/content/images/2023/03/Thumbs-for-the-blog--39.png","featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2023-03-07T10:04:24.000+00:00","updated_at":"2023-03-07T10:07:50.000+00:00","published_at":"2023-03-07T10:07:50.000+00:00","custom_excerpt":null,"codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"url":"https://moon.ly/blog/moonly-weekly-progress-update-39/","excerpt":"Holder Verification Bot (HVB) is in production for some time and now the real\ntesting begins.\nVery soon the other roles will be introduced for holders with more than one NFT\nor even specific traits!\nWe are gonna start offering to other projects Holder Verification Bot as well as\nStaking as a Service, Token creation, and Sales Bot which also arrive very soon!\n\nWeekly devs progress:\n\n * Experiment with catching a transaction and matching it with the production\n database\n * Finished and tested u","reading_time":2,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},{"id":"63f7575cbfaa040001a34203","uuid":"5b29d0fe-346c-4872-8733-297d2ae95245","title":"Crypto Gas Fee Explained","slug":"crypto-gas-fee-explained","html":"

Every decentralized transaction involves contract signing, which comes at a price, depending on the blockchain and some other underlying factors.

While Bitcoin and Ethereum are known to charge exorbitant gas fees, Solana, Bitgert, ADA, and many other proof-of-stake (PoS) blockchains (besides Ethereum) charge relatively lower gas fees.

What is a gas fee, and how do they charge you for it?

What Is Gas in Crypto?

A gas in crypto is the computing power required to mine or validate a block in a blockchain. Gas usage varies between blockchains and depends on the energy, GPU, and RAM strength used while mining or validating a block.

Generally, gas usage for the Bitcoin network, which uses the proof-of-work (PoW) protocol, is typically high since validators need to scale their mining rigs to solve complex, energy-intensive hash puzzles at an optimized speed. On the flipped side, this is a competitive task. That's because the more work a mining rig does in extending the chain, the more reward it gets.

Ethereum was slower, less scalable, and required more gas when it was on the PoW consensus.

However, Ethereum transactions are now faster, and the network is more scalable into more layers since it moved to PoS in 2022.

Other altcoin blockchains (blockchains besides Bitcoin), including Solana, Cardano, XRP, Polkadot, and Avalanche, among many others, require lower gas usage as they use the PoS mechanism.

What Is Gas Fee in Crypto?

$\"Gas$

A crypto gas fee is a price you pay for each transaction on a blockchain. You can also view it as the money you pay for the gas consumed during a transaction. Whether you're getting rewards or buying a token in a transaction, the gas fee isn't included in the cost or profit. It's for the validators.

For example, if an Ethereum NFT mint is free, you still need to pay a fraction of Eth, also called gwei, for the transaction.

Hence, the gas fee is a form of incentive for validators or miners to extend the chain and protect the network.

Gas fees are always chain-specific and vary by transaction. A blockchain usually charges based on its native token. For instance, you'll get charged in Eth for buying an Ethereum NFT on OpenSea.

While gas fees are typically a fraction of the crypto involved, they can accumulate depending on the number of transactions recorded. This also depends on the crypto demand relative to its supply. Once the demand exceeds supply, the network gets busier, increasing the gas fee.

And if the chain is receiving unusually high transaction traffic, gas prices might increase, as more gas is needed to validate transactions. This is typical of the Ethereum network.

The crypto price is another factor that can influence the gas fee. For example, if Ethereum's price rises, the dollar equivalent of the gas fee also increases.

That's one of the reasons some crypto traders avoid buying when the market is bullish. You can set a gas limit during a transaction. But validators determine if the set limit is acceptable or not, depending on the limit set by others transacting at that instance. If others have set a higher limit due to transaction scuffle, validators might decline your transactions and go for higher limits.

What Determines Crypto Gas Fees?

With all that said, here are some factors that can influence the crypto gas fee:

Transaction volume: As said earlier, the higher the number of transactions occurring at a time, the higher the gas fee tends to increase. However, some lightweight blockchains, including Solana, are generous with gas fees, and transaction volume may not significantly affect the gas fee.
Crypto price: The amount you pay in fiat for gas fees increases if the crypto rises in value relative to fiat. This still boils down to the upward shift in market demand, though.
Crypto demand and supply: Higher demand for a cryptocurrency can choke the network, resulting in costlier validations. This is often the case when a token or a project is rare and more people are transacting at once. Rarity sometimes leads to a gas war, a situation where only people willing to pay higher gas fees get their transactions approved.
Computational power: Although many blockchains have adopted the PoS protocol, which is faster, more efficient, and more scalable, the mainstream chain, Bitcoin, uses the PoW—which requires high computational power for block completion.

How Are Crypto Gas Fees Calculated?

The gas fee calculation method may vary with time and upgrade. For instance, Ethereum's method of calculating the gas fee has changed since the London fork in preparation for merging to PoS.

Each blockchain has a specific way of calculating the gas fee. However, Ethereum's way of estimating the gas fee gives us an idea.

According to Ethereum's documentation, the gas fee is calculated by multiplying the gas limit unit by the sum of the base fee and the user's tip.

Here's the mathematical equation:

Gas fee = gas limit + (base fee x user's tip)

So if you're sending 3 Eth to a friend, for instance, and the default gas limit is 21,000 units. You then decide to tip the validator 3 gwei (0.000000003 Eth) in addition to the base fee of 10 gwei (0.00000001 Eth).

The network calculates the gas fee thus:

Gas fee = 21000 x (0.00000001 + 0.000000003) = 0.000273 Eth

Thus, the total amount of Eth you send to your friend is 3 Eth + 0.000273 Eth, equivalent to 3.000273 Eth. However, Ethereum says it burns a base fee of 0.00021 Eth to improve Eth's rarity and increase its market value. So, this is removed from the computed gas fee, and the validator gets 0.000063 Eth.

How to Avoid High Gas Fees?

While many factors determine the gas fee, there are a few things you can do to avoid high gas fees on networks like Ethereum:

Use a layer 2 (L2) blockchain on Ethereum. An L2 blockchain is a super-chain, scaled version of Ethereum. So transactions are typically cheaper and faster on L2s.
Only transact when the demand is low or when the network is less congested. Weekends and midnights might be the best time to transact in web 3.0 if you want to reduce gas fees.
Switch to blockchains or networks with lower transaction fees. While this isn't financial advice, it reduces the gas fee you pay per transaction.
Use DApps that offer discounted transactions or use those that refund a percentage of your gas fee. While the latter is rare, an NFT marketplace like Blur rewards high-volume traders with the $Blur token.
Use gas fee calculators to estimate the gas fee before transacting to avoid spending beyond your budget. For this, we recommend Cryptoneur. Blocknative also comes in handy and provides gas-tracking extensions for Chrome, Firefox, and Brave. However, its usage can be a bit technical.
Study the daily Ethereum gas behavioral trend using chart tools like Ethereumprice.

Gas Fees Are an Integral Part of Web 3.0

While you may not completely avoid gas fees in web 3.0, improvements keep coming to how validators' machines consume gas.

For instance, Ethereum's L2 blockchain adopts a mechanism that reduces gas usage considerably, reducing the gas fee and making life easier for users.

So you might look forward to a point where you pay lower fees altogether---even on Ethereum. This is still speculative, though, since gas fees tend to increase as network usage rises. However, consistent upgrades and scaling have prevented this in many Ethereum and Bitcoin alternatives like Ethereum L2, Solana, XRP, and Bitgert.

Ultimately, the system can't afford to stop rewarding block validators for blockchains to keep existing.

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