Cryptocurrency Q&A
Why is it so expensive to send USDC?
Why is it so expensive to send USDC?
noah_smith_researcher
Tue Oct 08 2024
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7 answers
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Could you elaborate on why the cost of sending USDC, a stablecoin pegged to the US dollar, is so high? Is it due to the underlying blockchain technology used, such as Ethereum's gas fees? Or are there other factors at play, like network congestion or the complexity of the transaction? Understanding the reasons behind the high cost of sending USDC could help users make more informed decisions when choosing a cryptocurrency for their transactions.
7 answers
Tommaso
Thu Oct 10 2024
The costs associated with transactions involving Ethereum tokens or actions within ethereum-based applications are inherently higher than those of solely transferring Ethereum.
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Michele
Thu Oct 10 2024
This is due to the involvement of smart contracts, which are essential components of these transactions.
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Michele
Thu Oct 10 2024
Smart contracts are automated, self-executing contracts that contain the terms and conditions of an agreement between buyers and sellers.
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EtherealVoyager
Wed Oct 09 2024
They operate within the ethereum blockchain, ensuring transparency, security, and efficiency in transactions.
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Maria
Wed Oct 09 2024
However, these benefits come at a cost. Verifying smart contracts on the Ethereum blockchain is a complex and resource-intensive process.
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