High transaction fees hinder the full potential of cryptocurrencies and mass adoption, but free transfers are possible.

During the crazy bull run, transaction fees were very high. On the Ethereum blockchain, they reached a tearful high of $196,638 in May, rendering the network unusable for most everyday consumers.

The Bitcoin blockchain suffered from a similar problem last year, rising to a record $300,331. When demand is high, Proof-of-Work networks are easily overloaded, forcing miners to prioritize the highest paying transactions.

Here’s the problem: the high fees highlight one of the strongest use cases for cryptocurrencies – a decentralized way to offer peer-to-peer transfers. If sending money from point A to point B is too expensive to be practical, millions of potential users will not be able to take advantage of this technology.

Heavyweights in the crypto industry know this. Over the summer, Ethereum co-founder Vitalik Buterin warned that the cost of individual transactions “potentially takes up all of people’s daily income,” especially in emerging economies.

Prior to the merger, Ethereum transactions typically cost between $1 and $20, which he felt was not enough for billions of people around the world. A typical daily take home fee is US$16 in Mongolia and US$4 in Zambia.

Bear markets are focused on operational improvements through growth, and now blockchain developers are making a concerted effort to cut costs. This can help the cryptocurrency reach its full potential, especially in vital cases such as money transfers.

Some of the recent solutions include aggregations that aggregate transactions and host them outside of the layer 1 network. Not only is this cheaper, but it can also be faster if the data is sent back to the main network at a later date.

And just like trying to fit more clothes in a suitcase, more attention is paid to data compression, so each transaction takes up much less space. This, combined with concepts like shredding, is incredibly reassuring.

But trading platforms, which play a crucial role in direct interaction with crypto enthusiasts, can also play a role here. Facilitating zero-fee transfers can help provide the experience all consumers deserve, where they can move their digital assets without worrying about how much it will cost.

Do intuitive things
HitBTC is one of the exchanges that accepts forward transactions with zero fees. The trading platform offers an intuitive and user-friendly wallet for Android and iOS devices, providing a simple and powerful launcher for fiat togglers.

Notably, the new development allows HitBTC users to send cryptocurrency to friends, family and business partners for free, provided they have an account on the platform.

This could be a game changer. World Bank data shows that the average cost of sending $200 across borders in the fourth quarter of 2021 was 6%. And in countries that do rely on foreign workers to send money home to loved ones, losing $12 is a lot.

Zero-fee transfers can truly be a game-changer, saving consumers billions of dollars and opening up financial services to everyone. In addition, HitBTC claims to offer some of the lowest fees on the market today when buying or selling cryptocurrencies.

But that’s only one piece of the puzzle, and this compromise suggests that more needs to be done.

Crypto Refinement
Many crypto enthusiasts remember the first time they tried to send bitcoin from one address to another. When confronted with a wallet represented by a long string of letters and numbers, there is a lot of pressure to avoid typos — amid fears that the cryptocurrency could be lost forever.

But it shouldn’t be like that. With Web3, we are already seeing human-readable addresses become popular with fast domains like .eth and .crypto. While this is an encouraging development, HitBTC believes there must be other options.

HitBTC offers its customers the ability to transfer digital assets to each other using email, user ID, or anonymous links to make it easier to send funds. Whether privacy or simplicity is a priority, there is an option for everyone.

The simple approach of HitBTC is also complemented by an elegant interface for send and receive screens that allow you to complete a transaction with a few taps.

Cryptocurrency can often be incredibly intimidating to the non-tech savvy, but HitBTC proves that this is not necessarily the case. And in combination with the advent of free translations, there are problems on the way to mass adoption.

Source: CoinTelegraph

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