Ever since the word crypto has become more common place, especially post the recent bull run, that catapulted the overall crypto market cap to a staggering $3 trillion at its highs – transaction fees has been something that has been talked about a lot. Transaction fees is something that is more common amongst the tech circles as of now, who are more well versed with using blockchain tech and are a part of the DeFi ecosystem.
Transaction fees essentially refers to the cost of performing a transaction on the blockchain, that is paid out to the miners or validators for performing the job and securing the blockchain network. It basically works as an incentivization system so that the blockchain network can remain secure and at the same time, it is able to provide decentralized services to people.
As the world of DeFi became more and more popular, and many people starting using those services, the transaction fees began to increase substantially as more and more people weighed in and the networks had to process more transactions – thus the cost for these transactions went up, as is the case with the likes of Bitcoin and Ethereum now. That resulted in the birth of a new kind of network that wanted to solve this problem by reducing transaction fees to a fraction of what they earlier were and in this article, we will be looking at some of the top cryptos with the lowest transaction fees to look out for in 2022.
|BLOCKCHAIN PROJECT||NATIVE TOKEN||TRANSACTION FEES|
|Ripple||XRP||~ 0.00001 XRP|
|Polygon||MATIC||~ 0.044216 MATIC|
|Litecoin||LTC||~ 0.000090 LTC|
|Dash||DASH||~ 0.0071 DASH|
|Stellar||XLM||~ 0.00001 XLM|
|Monero||XMR||~ 0.0000075 XMR|
Iota is well known to be one of the most eco-friendly cryptos on this list. IOTA defines itself as an ‘open and fee less data and value transfer protocol’. The project is run by IOTA Foundation is a non-profit organization based in Berlin and it works to develop the IOTA token.
The most interesting thing about this project is that its native crypto token doesn’t charge any transaction fee at all. The network doesn’t even have miners, thus removing the need for transaction fees – and it also has the added benefit that transactions can be completed on the chain without the need for any serious computing power. Both these features removes the need for any transaction fees on the network. In any transaction, the amount deducted from the sender’s wallet is exactly the same as the amount added to the recipient’s wallet.
Now this begs the question – what drives the price of this token? It works on a system that rewards demand and as more and more transactions are completed on the network, it continues to get faster and faster. And its transaction speeds are also on the higher side, averaging between 10 to 12 seconds.
Similar to the crypto mentioned above, Nano’s doesn’t charge a transaction fee either. All transactions are validated and finalised in a matter of seconds, and thus making it a superb crypto for those who need to transfer a large sum of value quickly. Very dissimilar to proof of work, where miners compete against each other to complete the next block, Nano is designed in such a way that each account has its own blockchain that only its owner can update. Nano calls it the Block Lattice.
To perform a transaction on the blockchain, an account owner signs a transaction that is updated to their own ledger and then broadcasts it out to the rest of the network. When other Nano nodes identify that there are a sufficient number of confirmations to validate the transaction, they all independently deem the transaction as successful and irreversible and proceed to update their copy of the ledger. This helps to make the Nano platform more transparent and scalable without adversely affecting the network.
First released back in 2012, Ripple is a blockchain based digital payment settlement network and remittance system with its own native crypto. It mainly functions as a blockchain based alternative to the ancient SWIFT system for international money and security transfers – which is used by banks and other intermediaries while dealing across currencies.
This crypto is essentially premined and has the ticker symbol of XRP. XRP simply serves as an intermediary medium of exchange between two currencies or networks – like a settlement layer denomination. The biggest benefit of using XRP over the traditional financial means for money transfer is its cost. A typical transaction fee on Ripple’s XRP costs about 0.00001 XRP, making it one of the cheapest charges for transfers out there.
Read more: Top DeFi Tokens
Polygon is a layer-2 scaling solution that runs on top of the Ethereum blockchain. Its primary function is to essentially drastically increase transaction speeds for people who transact on the Ethereum platform and also significantly reduce transaction costs. It has a native ERC-20 token, which goes under the symbol MATIC – this was launched back in 2017.
Polygon is used to increase flexibility, scalability and sovereignty of a blockchain project while still being able to provide the security, interoperability and structural benefits of the Ethereum blockchain. The MATIC token is used to basically govern and secure the Polygon network and to pay network transaction fees for those who transact on the chain. Being built to lower transaction costs on the Ethereum blockchain – MATIC’s transaction fees are generally around 0.044216 MATIC on average.
One of the earliest altcoins in the market – Litecoin is a crypto that was built from a fork in the original Bitcoin blockchain back in 2011. It was initially built to address the quickly growing concern that Bitcoin was becoming more and more centrally controlled in the market. This fear grew in the market due to the fact that large scale mining companies were cornering a lion’s share of the hash rate in the market.
While it hasn’t been able to fully achieve that vision, Litecoin has been able to adopt a new vision – where it has reworked itself as a minable coin and a peer-to-peer payment system by reducing transaction costs and increasing transaction speeds of the blockchain network, as opposed to Bitcoin. Thanks to this, Litecoin has now become one of the cheapest and reliable networks for a payment system with transaction fees averaging 0.000090 LTC in fees.
Read more: Top Altcoins 2022
One of the earlier crypto projects in the market – it was initially launched back in 2014 – and described itself as a privacy-centric crypto based on the grandfather of all cryptos – Bitcoin – and the work done by Satoshi Nakamoto. It was initially launched under the name Xcoin, and was quickly rebranded to Darkcoin and finally landed on its current name, Dash in March 2015.
While its privacy and anonymity feature is something that is optional – it now works primarily to also serve as a means of payment by reducing the transaction costs involved in the payment. Dash even aims to become the means for daily transactions via a digital currency that can be used as cash, credit card or even via payment platforms like PayPal. The name Dash is actually short for digital cash too. Thanks to these efforts, transaction fees for DASH stand at about 0.0071 DASH as of now.
Stellar is a crypto project that is developed by Stellar Development Foundation. Its native crypto token called Lumens or XLM is very popular in the crypto world. Similar to Ripple’s XRP, Stellar Lumen is a project that strives to build an expansive blockchain based distributed ledger network that wants to connect banks, payment system and people through facilitation of low-cost, cross-asset transfer of value that includes payments.
It is one of the most popular blockchain based payment network in the crypto space, second only to probably Ripple’s XRP. It has a market cap of over $2.3 billion as of writing and is ranked at #25 on CoinMarketCap. Additionally, Stellar has one of the lowest transaction fees that average around 0.00001 XLM as of now.
Monero is widely popular and probably is one of the largest privacy focused crypto by market capitalization. Monero is a project that focuses specifically on enhancing privacy and anonymity around transactions happening over the blockchain. Blockchains are essentially open network where every transaction is visible on the chain. However tokens like Monero try to mask these transactions so that data can be hidden from prying eyes.
Along with that, Monero also attempts to make its platform cheap to transact on so that more and more people are incentivised to join in and use the ecosystem. So to make that possible, it also has devised ways to decrease transaction costs involved as compared to other blockchain networks. Thanks to these efforts, Monero averages around 0.0000075 XMR.
SO, HOW CAN YOU INVEST IN THESE PROJECTS?
Today investing in these Ethereum based project tokens is extremely simple with the CoinDCX App! Just download the CoinDCX crypto investing app, enter the details required and wait for your profile to get verified. Once done, fund your wallet and buy any of the coin of your choice.
Values as on 24 November, 2022.