Transaction fee

Short Description:

The fee charged by a relevant network for processing transactions on the blockchain.

Main Description:

A transaction fee, sometimes referred to as a gas fee, is the transaction cost required to perform operations on a blockchain network. Transaction fees are denominated in the native cryptocurrency of the network and serve as a mechanism to allocate computational resources and prevent spam or malicious activities. The complexity and resource intensity of an operation or smart contract determine the transaction fee, with more complex tasks requiring higher fees. On some networks like Ethereum and Bitcoin, transaction fees incentivize network participants known as miners to include transactions in the blockchain by compensating them for the computational power and resources utilized during the transaction verification process.