As we previously spoke in our article about the GAS Situation before, and to state a little context for this one, it’s valid to quote:
“When the development work for the Blue Hill Platform began, it was decided to use the best known blockchain to deploy smart contracts, this being of course Ethereum. At the time, the cost of GAS was not a problem, we were talking about levels below 10 Gwei. See: https://etherscan.io/chart/gasprice
With the birth of DeFI (Decentralized Finance) recently we have been at levels of 120 to reach peaks of 500 Gwei, which seriously hinders developments and uses of dapps (decentralized apps).”
Our solution for that situation in the time was: “That all these contracts go within the smart contract of the wallet, to avoid calling the contracts every time a wallet is created. It is something novel in the sense that, without thinking about this high cost of historical gas, it is not usually done that way. After two weeks of study we have decided that this is the best way to solve the situation in order to provide a functional and friendly platform in all aspects, meeting all the requirements already established.”
We managed to get this solution on board, and even though this situation slowed down the launching of the Blue Hill Platform, it was possible to confront the challenge with some creativity, both technical and economical. Once again we are facing the overwhelming and unpredictable swiftness of the cryptomarket, specifically regarding the Ethereum technology and the GAS price.
The GAS situation and our transactions in the Blue Hill Platform
At this moment, the GAS price is again in a rush of rising, and as much as we can try to understand and explain the reasons why of this behaviour, the truth is that no one really can, as this market is totally independent from third parties factors as the fiat markets are not. So the causes of the fast variations of these new markets are yet to be discovered and understood with the history itself, history that is being written while we are evolving together with this new cryptocurrencies, blockchain technologies, defi dapps, etc.
Glassnode is a reliable metrics provider which is openly used in the industry by experts and professionals to rely on historic data in order to have a way of understanding and predicting the markets behaviours. As you can see in the next screen capture, the Ethereum GAS has reached its historic maximum since its creation, and while the previous increase was affecting many entities and brands, this one is for sure causing a revolution on those ones and others.
The moment the transactions in general for the Ethereum network are low cost, most of them are selected and executed, but once the demand of transactions increases and the price increases too, the Ethereum network selects the ones that are the most profitable for it, in an order book of transactions.
The demand is so high these days, that the GAS price is high again and that’s why we can see in the image above, that the price has reached its historical maximum.
As you already know, our Blue Hill Platform works with the Ethereum technology, and there are several costs that are activated per user (in Gwei), being the main ones:
In order to ensure a viable future for the Blue Hill Platform and its services, when we solved the GAS situation before the launching we also previewed a further situation like this to happen, for what we incorporated a mechanism of TopOfCost to work as a limit to activate or pause the transactions within our Blue Hill Platform.
Once the top of the costs (regarding the current GAS) is rised, the Ethereum network won’t process them until the price is stabilized again. Once the cost is under this limit again, the Ethereum network considers them eligible again to be processed. In resume, while the costs are above the TopOfCost the transactions won’t be selected by the Ethereum network, as a normal offer-demand rule of every market.
Being this the situation and hoping that the GAS will stabilize again, we want to explain to all of our token holders that sometimes the transactions may be paused or slowed down and the reason behind this for the next period until further news is released, depending on the future behaviour of the cryptomarket.