Crypto market

What is cheaper: comparing SMART Blockchain with other networks based on transaction costs

22 February 2024

The early blockchains lacked sufficient flexibility and performance, leading to a range of problems, one of which was expensive transactions. For example, Ethereum became the first and most popular smart contract-based blockchain, but its technology became outdated and incapable of handling a large number of transactions.

Over a million transactions occur daily on Ethereum, yet the network can only process up to 14 transactions per second. This limitation results in significant transaction delays and, consequently, high network fees. This same issue affects other blockchains, especially those of earlier generations. 

Bitcoin Network Fees

Not everyone knows, but in the early stages of Bitcoin’s work, there were no fees on the network. This was due to the low number of transactions. However, as the number of Bitcoin network users grew, transactions first became paid, and then their price started to rise, correlated with the increasing value of the BTC cryptocurrency.

Bitcoin’s blockchain is not flexible, so issues with expensive transactions remain unresolved. Developers make efforts to address the problem by releasing updates such as SegWit, but it hasn’t significantly improved the situation: the average cost of transactions on the Bitcoin network still exceeds $2

The situation worsens with the growing popularity of BRC-20 tokens on Bitcoin. Due to increased user activity, transaction costs sometimes reach $30 and even higher.

Ethereum Network Fees

Ethereum introduced the concept of gas to pay fees – a kind of fuel that “powers” transactions. Issues with slow and expensive transactions weren’t as noticeable until 2017 when the popular game CryptoKitties demonstrated that the Ethereum network couldn’t handle a large influx of users. This almost led to blockchain coming to a halt.

To address high fees, developers took several measures, one of which was the EIP-1558 proposal. In 2021, after the release of the most significant Ethereum network update, The Merge, the cost calculation mechanism changed, but it didn’t really help the situation: fees still remain considerably higher compared to many other blockchains. 

The average fee on the Ethereum network for a simple transaction (ETH transfer) ranges from $1.25 to $3. Transactions such as swaps or transfers from the Ethereum network to another are much more expensive. According to the Ethereum Gas Tracker, as of mid-February 2024, fees for various transactions are as follows

  • Swap (exchange): $22 and above;
  • Buying/selling NFTs: from $37;
  • Transfer from Ethereum network to another: from $7;
  • Cryptocurrency borrowing: from $18.

While The Merge update reduced fees, the network’s throughput remained the same, and transaction costs also remained relatively high.

Tron Network Fees

The Tron network has a much higher throughput compared to Ethereum and can process up to 4,000 transactions per second. However, Tron uses a different model for transaction fees than Ethereum.

Similar to other networks, Tron users can pay fees with the native platform cryptocurrency (in this case, TRX). Additionally, users can freeze a certain amount of TRX to reduce transaction costs, and in some cases, even avoid paying for them altogether, although this requires freezing a significant amount of TRX

SMART Network Fees

This blockchain stands out significantly from its competitors in terms of transaction fees, which rarely exceed $0.000005. Such low transaction fees and an innovative approach have helped the project’s team attract more than 2 million users.

SMART has a well-developed ecosystem that includes various decentralized applications (dApps). Thus, SMART users have numerous options for using their digital assets within the ecosystem without experiencing significant expenses for any type of transaction. 

Behind the development of the SMART blockchain is an experienced team with over 20 years of cryptocurrency industry experience, having launched several successful startups in the past.

The cost of transactions and the blockchain’s performance confirm the innovative nature of the project: even later-launched blockchains like Polygon or Avalanche cannot boast such low fees. 

A comparative table of fees between SMART and other blockchains

Throughput (transactions per second, TPS)2,000 7144,000
Average fee cost for native cryptocurrency transfers$0.000005$2.17$1.25$0.14
Average transaction cost for token transfers$0.000005$2.17$3.66$1.77
Block generation frequency3 seconds10 seconds10–19 seconds3 seconds
Token formatSRC-20, SRC-10BRC-20ERC-20, ERC-721, ERC-1155, ERC-404TRC-20, TRC-721, TRC-1155

SMART is the best blockchain for fast and inexpensive transactions

Whether you need to simply transfer cryptocurrency or tokens, exchange them for another asset within the network, or move assets to another blockchain, SMART is the best choice for these tasks. In the SMART blockchain, fees are tens of thousands of times cheaper compared to Bitcoin, Ethereum, Tron, and other blockchains commonly used by crypto enthusiasts.

In terms of transaction costs, only the newest decentralized platforms, such as Polygon, Cosmos, Celestia, or Avalanche, can compete with the SMART blockchain. However, even in these networks, the cost of fees is significantly higher.