Upvest receives funding to solve Ethereum transaction fee problem
Upvest announced on its blog that is has secured 900,000 pounds in funding from the IBB profit program to help solve the transaction fee problem on Ethereum. Transaction fees are a complex topic that platforms have to deal with when building applications on Ethereum. On the decentralized network, the execution speed of a transaction is dependent on the network traffic at a given time, as well as on the transaction fee, which is sent along with the transaction. Thus, setting a fixed fee for every transaction will likely result in an over- or underfunding of the transactions. Overfunded transactions add up in terms of cost, especially when the amount of transactions sent is very high. Underfunded transactions, on the other hand, come with the risk of being dropped, so never included in mined blocks. This is a problem since the transaction is stuck in the mempool, and it requires signing another transaction to replace the underfunded one.
As of today, existing approaches to fee recommendations are static and do not come with an enterprise standard (SLA). Upvest has built a fee recommendation engine to cover this missing piece of software in the Ethereum ecosystem.
Upvest developed a fee recommendation API based on a continuously evolving machine learning model. We are constantly collecting real-time network signals from numerous independent data sources, including for example the number of unconfirmed transactions or the number of active miners.
Our currently deployed model has been trained with Ethereum network signals gathered over a period of one month. The Initial benchmarking results against the current fee recommendation solutions promises crucial performance improvements by 18%. “Fee estimation using Neural Networks (FeNN) Solution”
The upvest fee recommendation engine is designed for startups and companies that are executing a large number of transactions on the network.
Upvest offers the service in the form of an easy to use API, which does not require any blockchain specific knowledge. You get the execution speed that you pick, no need to think about fees. The product is fully integrated into the Upvest product suite and comes with an enterprise-grade SLA.
Upvest clients are using the fee recommendation engine in the context of primary security token issuance, and for transactions in the secondary market between investors. Since the technology is use-case agnostic, it can easily be used by exchanges as well.
To complete the Upvest transaction toolbox, we are currently working on a transaction confirmation risk calculator to account correctly for incoming Ethereum transactions. By recommending the optimal waiting time for block confirmations, our customers are able to account for these transactions as early as possible, while mitigating their risk.
