Gas fees refer to transaction costs on blockchain networks, primarily in cryptocurrencies like Ethereum. These fees fluctuate based on network congestion, transaction complexity, and priority. A high gas fee can significantly impact users by making small transactions uneconomical and affecting decentralized applications (dApps) that rely on frequent interactions. Businesses using blockchain must consider gas costs in their pricing models. Solutions like layer-2 scaling, gas optimization strategies, and blockchain upgrades aim to mitigate high fees. Users can manage costs by transacting during low-traffic periods or utilizing gas-efficient protocols. Understanding gas fee impact is crucial for effective blockchain participation.
