Thread by @KaizenCrypto

Question from a Follower:

Will #Cardano face a similar issue as we're seeing with #Ethereum after #Goguen launches?
Will the rise in $ADA price make the network too expensive to use?

Thank you for the question 🙏 Enjoy the Tweet Storm

In my opinion, the reason the fees on the Ethereum network are so high is that the network is being used to a point where it can not scale to meet the needs of all the applications currently running on the protocol.

All the transactions are fighting for block space to get confirmed on the blockchain. Eth is trying things like Sharding and ZK rollups, etc. Even Eth 2.0 with the move to POS.

In contrast, Cardano is currently running POS and will have scaling solutions like Hydra that will take network resources from validators to increase throughput as the network sees more activity. Cardano's current state only sees txs for sending and receiving ADA,

but Goguen will introduce smart contracts, and that's where the fun starts happening. To answer your question as to whether Cardano will face a similar issue to Ethereum, I don't think we will have a similar issue in regards to network fees.

Even with the rise in the price of ADA, fees will be a fraction of a token even for sending hundreds of thousands in value. With native assets, the tech is even being built where you can send a transaction for a Dapp using the native asset of the smart contract.

Unlike ETH, If I want to borrow DAI on MAKER, I need to have ETH in my wallet to pay for the transaction. Something I'm really fascinated by is, let's say the price of ADA gets to be $10 in 10 years,

with the governance model in place with Voltaire, can ADA holders vote on chain to adjust the transaction fee...? Just letting my mind wonder :) I really appreciate the question as I think this will be a major topic of consideration for the future of this tech.