Elon Musk just responded “Dooooge” in response to a tweet regarding Ethereum’s high transaction costs, promoting his favorite cryptocurrency while also emphasizing how it can be used to make Decentralised Finance (DeFi) more accessible to everyone.
The Tesla CEO frequently uses his Twitter account to make recommendations for crypto investors at a time when the market is booming, and this is yet another time he has mentioned meme-based cryptocurrency Dogecoin.
DeFi systems attempt to provide a self-contained and decentralized alternative to bank-regulated financial services. The majority of DeFi apps are built on the Ethereum blockchain, which has rather high transaction fees due to the cost of each Ether (ETH) token.
The DeFi protocol is becoming unavailable to small investors owing to Ethereum’s high transaction costs, according to cryptocurrency news site CoinDesk. Musk responded to this article with a single word, “Dooooge,” referring to his favorite cryptocurrency, Dogecoin.
According to the CoinDesk article, the Dogecoin transaction charge, or “gas fee,” is still quite modest, hovering about $0.65 (around Rs. 50) each transaction.
This is one of the reasons why Musk dubbed Dogecoin “the people’s crypto” earlier this month.
Musk continues to believe that Dogecoin transaction fees could be reduced, even more, making the cryptocurrency suitable for everyday transactions such as cinema ticket sales.
Because each transaction on the Ethereum blockchain necessitates the use of computing resources, it is subject to a transaction or “gas” cost. Gas costs are expressed in “gwei,” which is an Ethereum unit of measurement equivalent to 0.000000001 Ether.
Gas fees, according to a blog on Ethereum’s official page, help keep the network safe from undesirable actors who would spam it.
Due to the blockchain network’s popularity, which has been a source of anxiety for many people, the gas charge for Ethereum transactions has stayed high for a time.
Budweiser announced a collection of non-fungible tokens (NFTs) based on Ethereum in November. A $75 petrol cost (approximately Rs. 5,600) is necessary to complete the purchase of these digital artifacts from the beer brand. The exorbitant transaction charge on this sale drew a lot of attention on the internet.