#CryptoFees101 also known as "gas fee" or "network fee", is the fee paid to carry out a transaction on a blockchain network. It is used to reward the miners or validators who maintain the security and operability of the network.
Why is gas paid?
Incentivizing miners:
Gas is the compensation for miners for processing the transaction and adding it to the blockchain block.
Network maintenance:
Miners are responsible for keeping the network secure and operational, and gas is their payment for this work.
Spam prevention:
The gas fee helps to prevent unnecessary or spam transactions on the network, as the cost of the transaction can be high.
Supply and demand:
The price of gas fluctuates according to the demand for transactions on the network. The higher the demand, the greater the cost.