Sunday, February 23, 2020

Anonymous User Pays $308,000 as Transaction Fees Sending $14.71 Worth Of ETH

Jide Idowu
I am Jide Idowu. A stay-at-home dad and a cryptocurrency enthusiast. I have had my hands on freelance writing for over five years, researching and writing guides, reviews, and latest cryptocurrency news for various blogs and individuals world over.

What are we grateful for? A public blockchain that is open to just about anybody to see what’s going on in real-time. Now hold that thought! About 20 hours ago, a random transaction on the Ethereum blockchain revealed that someone had sent 0.1 Ether valued at $14.71, but paid a transaction fee of 21,000 Ether worth over $308,000.

Here Comes the Transaction of the Year

Cryptocurrency enthusiasts on Reddit, Twitter, and even on the comment section of Etherscan are having a field day with the transaction of the year. A random person wholeheartedly paid over $308,000 as transaction fee while sending just $14.71. In that regard, several people have made comments trying to ascertain what may have led to such. Be that as it may, here’s what we’ve got so far.

Could Just Have Been A Mistake

Many have suggested that the high fee was paid by mistake and probably by an elderly person who is not conversant with making crypto transfers. However, we are not too quick to agree because, on closer inspection of the same public address, it shows that other transactions of this nature had taken place.

For instance, an hour before the first payment, a fee of 420 Ethers ($61,744.20) was paid to send 0.02 Ethers ($2.94). Likewise, 210 Ethers ($30,857.40) was paid in fee to transfer 0.01 Ether ($1.47) and 840 Ether ($122,715.60) to send 0.02 Ether ($2.92). Could mistakes be made in succession even after the default gas limit has been set to 2100? Sounds outrageous! Nevertheless, the wallet in question currently holds about $86,000, and so far 17,694 transactions have been made from it.

Money Laundering at its Best

Unarguably, cryptocurrencies are one of the tools used to launder money and given the high rate of recent; it does not come as a surprise that this may be the second thought that pops to mind. Assumptions have, therefore, been made that whoever sent the money, is looking for a way to hold on to their illegally obtained funds without leaving a footprint.

In this case, they may have chosen to pay so much in fees but decided not to broadcast the transaction over the network. As a result, other miners who only get rewarded for being the first to find the next block, won’t locate it. That means the block is still open for the sender of the payment to locate and still claim their $308,000.

Fast Transaction Speed

Paying this high fee can also be attributed to the sender’s need for the payment to deliver within a matter of seconds. It is a known fact the higher the fees, the faster the transaction on the Ethereum and even Bitcoin blockchain. However, it still makes little or no sense due to the small amount that was transacted.

Aside from these, users on Reddit have made recommendations on the blockchain that can provide for faster transaction speed and with no fee levied. Popular among these, is Nano, which is believed to allow transactions to be completed within 7 to 8 seconds. Despite this, it has been noted that it still takes advantage of the user’s resources such as their electricity and bandwidth to facilitate such payments.

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