Find out what Gas fee means in blockchain
This week, we’re exploring the realm of fees. Every time you perform an action on the blockchain, it appears you’re required to pay a fee known as a ‘gas fee’. But what does this fee mean, exactly?
The term “gas fee” is commonly employed to describe the expense that users of certain blockchain protocols incur when they execute a function on the blockchain, paying network validators.
Gas acts as a motivating factor for network validators to accurately record transactions and maintain protocol integrity by adhering to honest behaviour.
While Ethereum and Polygon refer to them as “gas fees,” other blockchains like Solana and Bitcoin utilize the term “transaction fees,” which is a more commonly recognized term for most users.
Gas fees frequently catch blockchain users off guard. On non-custodial platforms where transactions occur directly on the blockchain, gas fees can vary unpredictably from one moment to the next.
Why fees?
Any action conducted directly on a blockchain, whether it’s executing a smart contract or buying a non-fungible token (NFT), necessitates computational resources for processing and finalization.
Network validators, a decentralized collective of individuals operating specialized computer programs, authenticate blockchain transactions by providing computational power. Validators acquire, operate, and upkeep their own equipment as they strive to safeguard the security and integrity of a blockchain network.
Gas fees play a crucial role in transferring value from users requiring blockchain network services to those supplying the computational power necessary for execution. These fees incentivize validators to accurately process transactions and maintain the security of the blockchain ledger.
In essence, a gas fee refers to the fee for a transaction or action, akin to a transaction fee. However, instead of going to a corporation, it goes to Network Validators who assist in running the blockchain. Ponder can assist you in finding the most efficient routes with minimal fees, regardless of the chain you’re swapping from or into. We’re here to support you every step of the way!
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