Top 5 Blockchains With the Lowest Fees
Oct 03, 20224 min read
The fee is a very familiar concept today because you must pay it for almost any transaction. This applies to bank payments, payment for services via terminals, and electronic payment systems.
Unfortunately, even cryptocurrencies — which would seem to open a new era in finance — have not fundamentally changed anything. Transaction fees still haven’t gone away.
Every minute, hundreds of transactions are transmitted through the cryptocurrency network. These transactions must be verified, confirmed, and added to the blockchain. It is for these services that the transaction fee is charged. The networks of some cryptocurrencies, due to their high popularity, have become so loaded that when transferring tokens from one address to another, the fee can reach jaw-dropping amounts. To date, the issue of scalability, congestion, and bandwidth of the blockchain is extremely acute. Fortunately, some developers have succeeded so well in solving it that they allow transactions with zero fees. The top five cryptocurrencies with the lowest network fees will be discussed further.
Nano is unlikely that any rating of cryptocurrencies with the lowest fees will do without nano. The fact is that nano does not just have low network fees, but rather their complete absence. Nano is a payment cryptocurrency, the primary purpose is to make crypto transactions lightning fast, free, and secure. Moreover, in an attempt to make nano the best means of payment, the project team has adopted a new ticker and currency symbol that fully complies with International Organization for Standardization (ISO) requirements. So how did nano manage to achieve zero transaction fees? The answer lies in the fact that nano is not a traditional cryptocurrency. That is, it does not use blockchain technology.
On the contrary, nano uses a similar technology called Directed Acyclic Graph (DAG). Within the framework of this technology, each participant of the network operates its own “blockchain”, and for the transaction to pass, the sender must confirm the previous transaction. Thanks to this approach, nano is not only a fee-less but also an extremely fast cryptocurrency.
Tron is one of the most popular blockchain networks on the market. Various cryptocurrencies operate based on the TRC-20 standard, such as USDT, USDC, KLV, and others. In addition, users who want to send the listed tokens often use the TRON network to ensure fast and cost-effective transactions. TRON was conceived as a decentralized platform for content exchange, a new generation social network. However, to date, TRON has gone far beyond its original vision. Today, TRON is a demanded blockchain platform that allows you to issue custom tokens and build decentralized applications. TRON is one of the main competitors of Ethereum, as it effectively solves the problem of scalability and high network fees. Transactions on the TRON network can be cost-effective and free. The thing is that the developers of TRON completely got rid of such a thing as gas fees, instead introducing a novel model based on bandwidth points. The TRON network allocates a certain number of bandwidth points to users daily, which is systematically spent as a result of transactions. If the user’s daily supply has expired, one can freeze their TRX coins to get more.
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IOTA is a cryptocurrency that aims to become the main connecting element for transactions between IoT devices. The idea of the Internet of Things is forming a worldwide network that unites not people but different devices — cameras, smart home sensors, etc. To integrate the coin, the developers needed to create a self-regulating platform. The MIOTA cryptocurrency works outside blockchain technology, unlike Bitcoin or Ethereum. Instead, DAG is used. As already mentioned, the difference between DAG and blockchain lies in the structure of records. There are no blocks, chains, and miners in the DAG. There is no one to pay for adding transactions to the block. The cryptocurrency’s data structure is based on the Tangle transaction log, proprietary development of the company. Before making a transaction, each system participant confirms two previously created ones. The more operations are performed, the faster the system works. Therefore, there is no restriction on scaling, and no user support in the form of mining is needed.
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If nano is similar to IOTA in that both are built on DAG technology and therefore do not have transaction fees, then in the case of EOS, it has similarities with TRON. Like TRON, EOS is an operating system for creating decentralized blockchain applications. Applications and web interfaces developed within the EOS ecosystem are not charged to end users. This concerns the transmission of messages or the use of blockchain functionality. Developers are allowed to choose their own transaction fees and monetization mechanism. The concept of EOS is to create a secure and comfortable blockchain platform that provides convenient access for application developers and ordinary users and is scalable to several thousand transactions per second. Like in the TRON network, EOS uses the Energy and bandwidth points model. Users who stake their EOS tokens receive certain points and can make transactions free of charge.
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Stellar is a decentralized monetary system that is a fork of Ripple. The developers of Stellar decided that the Ripple payment network had become too centralized and focused not on individuals but on banks and corporations. Stellar was conceived as a platform for the creation, storage, and transparent exchange of funds. It is positioned not as a replacement for the existing financial system but as a tool for modification (by reducing costs and time for cross-border transfers). Stellar provides the ability to tokenize assets. The user can digitize any value (by creating their stablecoin) and then sell/buy it. Coins can be pegged to fiat currencies (euro, dollar, yuan), precious metals, stocks, and other assets. Using Stellar, developers can create mobile wallets, tools for banking operations, “smart” automatic payment systems, and many other payment-oriented applications. The platform has become extremely popular among business owners, allowing them to accept instant, low-fee payments. Speaking of the transaction fee, it is 0.00001 XLM.