16 MAY 2020 ETH NETWORK CONGESTION AND BITCOIN HALVING UPDATES.

Due to the global COVID-19 pandemic, digital and crypto payments have become omnipresent,

They are also an effective tool in slowing down the spread of this virus, due to the need for social distancing and virus tainted paper money.

For every crypto transaction, there are variable costs associated with it.

Q: Did you know that a simple withdrawal from the EDC App to EDEX requires 3 transactions that incurs 3 separate ETH gas costs and other ancillary costs?

As for our Crypto Exchange, these costs include :

a. Human resource costs,
b. IT infrastructure costs,
c. Financial management costs,
d. Treasury management costs,
e. Cyber-security and offline security management costs.
f. Project Management costs,
g. Operational Management costs,
h. Escalation Management costs,
i. ETH gas,
j. BTC transaction fees.
k. Stellar (XLM) transaction fees.

As you can see, managing a crypto exchange is NOT a bed of roses.

In regards to ETH gas, a considerable amount is spent to pay for the usage of the Global Ethereum payment and settlement system. (smart contract, EVM). This is a necessary outlay to use the ETH system. The costs covered by ETH global validators include development costs, production costs, infra costs.

With the need to balance between security, decentralisation and convenience, the increase in costs was caused by the high congestion on the ETH Global Network and the Bitcoin Halving on 12 May 2020.

Reference:

Bitcoin Halving
https://news.bitcoin.com/bitcoin-transaction-costs-soar-400-amid-halving-hyperbole/

Research: Ethereum Blockchain Ponzi is Grinding Network To a Halt and Hiking Fees
https://cryptopotato.com/research-ethereum-blockchain-ponzi-is-grinding-network-to-a-halt-and-hiking-fees/


DEPOSITS: Normal
TRADES: Normal
WITHDRAWALS: Restored on 15 May 2020 (Normal)

Reminder:

We apologise for the inconvenience and our Global Engineering Team is currently monitoring the high BTC and ETH global network situation.

Problems? you can still reach us at helpdesk@edexchange.io

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