One of Cardano’s advantages over other chains is the predictable fees for on-chain services. Cardano processes transactions on a first-come, first-served basis. Unlike most blockchains, the transaction fee size does not increase when the network is under pressure. However, this approach is not ideal. Block space is a scarce resource that can be in high demand. As demand increases, the value of block space should also increase. Most networks use a so-called fee-market mechanism that allows block producers to choose transactions based on the size of the fee. If the network is clogged for an extended period of time, people fight over block space and fees skyrocket. It may be fair, but it’s not inclusive. They say that in this case, only the rich can use the blockchain. Come see what tiered pricing will bring.
TLDR
Tiered pricing allows users to set the fee according to how urgent their transaction is. If they pay a higher fee, the transaction will be processed quickly. Transactions that are less urgent will be cheaper. Cardano will thus remain, at least partly, inclusive.
This article was prepared by Cardanians with support from Cexplorer.
Read the article: https://cexplorer.io/article/cardano-may-have-tiered-pricing-in-the-future