Blocknative

How Blocknative Can Save You (Possibly) Hundreds on Ethereum Gas Fees

Blocknative was founded in 2018 by Matt Cutler and Chris Meisl. The company's mission is to bring transparency, predictability, and reliability to blockchain transactions. Blocknative focuses on the mempool layer, the stage where transactions are waiting to be confirmed on the blockchain. By providing real-time data and insights about pending transactions, Blocknative aims to improve the overall user experience and efficiency of blockchain networks by providing solutions to these common user-challenges:

Transaction Uncertainty: One of the primary issues in blockchain transactions, especially on the Ethereum network, is the uncertainty of transaction confirmation times and costs. Users often struggle to predict how much they should pay in gas fees to ensure their transactions are confirmed promptly. Blocknative addresses this by providing real-time gas fee estimates and transaction status updates.

Mempool Transparency: The mempool is a crucial but often overlooked part of blockchain networks. It holds unconfirmed transactions and plays a significant role in transaction processing times and fees. However, the mempool is generally not transparent to end users. Blocknative aims to bring visibility to the mempool, allowing users to see and understand the status of their transactions before they are confirmed.

Gas Fee Optimization: High and volatile gas fees can make blockchain transactions costly and inefficient. Blocknative helps users optimize their gas fees by offering accurate predictions and insights, enabling them to set appropriate gas prices and avoid overpaying.

Developer Tools: Developers building on blockchain platforms need reliable tools to create efficient and user-friendly applications. Blocknative provides APIs and SDKs that offer real-time mempool data, gas fee estimates, and transaction tracking, making it easier for developers to build robust applications.

What is a Gas Fee Estimator?

A Gas Fee Estimator is a tool designed to help you understand and predict Ethereum gas fees. Gas fees are the costs you pay to perform transactions or execute contracts on the Ethereum network. These fees can fluctuate based on network demand, so having a reliable estimator can save you money and ensure your transactions are processed quickly.

How does it work?

This tool leverages a global network of nodes that gathers and analyses transaction data from the Ethereum and Polygon blockchains. Therefore, this feature enables a thorough view of transaction-related activities and the mempool’s state.

To be able to accurately estimate gas prices, BlockNative’s tool uses a machine learning model that takes advantage of both historical and real-time data. It is claimed that it is an advanced model that is constantly updated and configured due to the changing conditions of the Ethereum network.

The BlockNative gas estimator also includes so-called gas estimation confidence levels. In simple terms, users can choose from four levels such as low, medium, high, and urgent, depending on the desired speed and cost.

Finally, the tool provides predictions based on block number rather than just time. It is stated that this technique is more reliable. In other words, it shows end-users the expected gas price for the next 10 blocks, along with the average confirmation time.

The Gas Fee Estimator works by analysing real-time data from the Ethereum network. It uses this data to predict how much gas you should pay to have your transaction processed within a specific time frame. The tool provides estimates for different urgency levels:

• Slow: Your transaction might take longer to be confirmed but will cost less.
• Average: A balanced approach with moderate speed and cost.
• Fast: Higher cost but quicker transaction confirmation.
  

The estimator updates frequently to reflect the latest network conditions, providing you with the most accurate information possible.

Key features

1. Real-Time Data: The estimator uses live data from the Ethereum network to provide the most accurate gas fee predictions.
2. Multiple Speed Options: It offers different gas fee estimates based on how quickly you want your transaction to be confirmed.
3. User-Friendly Interface: Designed to be easy to use, even for those new to crypto.
4. Historical Data: You can view past gas fees to understand trends and make informed decisions.
5. Alerts and Notifications: Get notified when gas fees reach a certain threshold, so you can take action at the right time.
6. API Access: For developers, Blocknative offers API access to integrate gas fee estimations into your own applications.
   

Who should use it?

1. First-Time Crypto Users: If you're new to Ethereum and don't understand how gas fees work, this tool will help you avoid overpaying and ensure your transactions go through smoothly.
2. Regular Ethereum Users: For those who frequently send transactions or interact with smart contracts, the estimator helps manage costs and predict transaction times more accurately.
3. Developers: If you're building applications on Ethereum, integrating the Gas Fee Estimator can enhance your users' experience by providing them with real-time fee predictions.
4. Traders: People who need to move quickly in and out of positions on decentralised exchanges can benefit from knowing the best time to execute transactions at the lowest cost.
5. DeFi Users: Users of decentralised finance applications, where transaction timing can be crucial, will find this tool invaluable for optimising costs.
   

Tips for using Blocknative

• Monitor Regularly: Gas fees can change rapidly, so keep an eye on the estimator, especially during high network activity.
• Set Alerts: Use the alert feature to get notified when fees drop, so you can take advantage of lower costs.
• Understand Trends: Look at historical data to understand when fees are typically higher or lower.