#CryptoFees101 Who are the 'delivery workers 🚚' in the crypto world and why do we pay them?
Have you ever sent digital currencies to a friend, and then noticed that the amount they received was a little less than what you sent? 🤔 Don't worry, no one stole your money! You just paid a 'digital delivery service' fee.
Imagine that the crypto network is a huge global delivery service 📦, and your transaction is a package you want to send. So, who are these workers, and why do we reward them?
What is the 'postage' for your digital transaction? 🎟️
Simply put, crypto fees (Gas Fees or Transaction Fees) are the shipping cost or postage you put on your digital package.
You do not pay these fees to a bank or a company. Rather, you pay them directly to the 'delivery workers' (who are the miners 'Miners' or validators 'Validators'). These workers use supercomputers to do three important things:
Receiving your package (your transaction).
Ensuring it is intact and not counterfeit (validating the transaction).
Registering it in the global delivery ledger (adding it to the blockchain).
Without them, the delivery service completely stops!
🔥 Why does the cost of delivery sometimes change?
Have you noticed that fees go up and down? The reason is very similar to delivery services in the real world:
Peak times (network congestion) 🚦:
Imagine it's the holiday season, and everyone is sending packages at the same time! The delivery service becomes very crowded. For your package to get priority and arrive quickly, you have to pay a bigger 'tip' to the delivery worker (higher fees) to take your package first.
The size and complexity of the package (transaction complexity) 🧠:
Sending a simple message (regular transfer) is cheap. But sending a large and insured package (like interacting with a smart contract or decentralized application) requires more effort from the workers, and thus its cost is higher.
Who are these 'delivery workers'? 👷♂️
They are the backbone of the decentralized network, and there are two main types:
The miners (Miners) ⛏️ (like the Bitcoin network):
They are workers solving very complex mathematical puzzles to win the right to deliver a set of packages. The fees are their reward for this tremendous mental and computational effort.
The validators (Validators) ✅ (like the new Ethereum network):
They are trusted delivery workers who have put 'insurance' of their own money to be chosen. The fees are their pay for their service and integrity in delivering the packages.
💡 The golden summary
Crypto fees are not a penalty or tax, but the fuel that keeps this decentralized network running 24/7 without a boss or manager. They are the fair pay for those who maintain the security and speed of your transactions.
Tip: Before completing any transaction, most wallets allow you to see the estimated fees, and sometimes let you choose between 'slow and cheap' or 'fast and expensive' delivery!
It's your turn now, my friend! 👇
What is the highest fee you have encountered in the crypto world? 💬
Did the analogy of 'delivery service' help you understand the fees better?
Don't forget to like 👍 and share the article with your friends who always wonder where their money goes! 🚚
