Hatch Labs, a Korean blockchain technology company, announced on the 25th that it has released a new version of the cryptocurrency wallet API’Henesis’, which can reduce Ethereum transaction fees (gas fees) by up to 75% compared to the previous one.
Ethereum’s transaction fee is determined by three factors (Ethereum price, gas cost, gas usage). Ethereum price has increased tenfold from 250,000 won in May last year to 2.5 million won in recent years, and gas prices have increased tenfold from an average of 10Gwei to 100Gwei.
Assuming that gas usage is constant, Ethereum transaction fees have increased by more than 100 times compared to May of last year. Therefore, the cost of the cryptocurrency exchange that manages the cryptocurrency wallet of many users and the cryptocurrency loan service operator spends on the Ethereum network is also increasing.
In particular, cryptocurrency exchanges spend hundreds of millions to billions of billions of transaction fees per month to issue wallet addresses of investors and collect cryptocurrencies deposited by investors into exchange wallets. As a result, some exchanges raised Ethereum transaction fees earlier this year.
Hennessy has significantly reduced transaction fees incurred for deposits on cryptocurrency exchanges based on the expertise of blockchain and smart contracts. In general, transaction fees are incurred when issuing a smart contract-based wallet address, but Hennessy has designed a new technology called’CREATE2′ so that transaction fees are not incurred when issuing a wallet address.
Furthermore, Hennessy lowered the transaction fee to 0 won to collect the deposited Ethereum into the exchange wallet. In addition, it is possible to collect cryptocurrencies deposited in up to 50 wallets in one transaction, significantly reducing the amount of gas generated per wallet. Hatch Labs said, “In addition to Ethereum, Hennessy will introduce a technology that can lower the operating cost of Bitcoin and various cryptocurrency wallets.”
Kim Jong-ho, CEO of Hatch Labs said, “As Ethereum prices and gas prices increase, we know that the burden on cryptocurrency exchanges and cryptocurrency loan service companies using the Ethereum network has increased.” “We will support all necessary infrastructure so that you can conveniently handle cryptocurrency.”
The use of Hennessy’s new version of the wallet API can be requested on the Hennessy website.