Why Do We Pay Gas Fees?

why-do-we-pay-gas-fees

TL;DR

  • Gas fees are the charges paid by a user to the blockchain network whenever they send crypto from one wallet address to the other
  • It is usually a compensation for the computational power and energy used by miners/validators to maintain decentralization and security on the network
  • Gas fees vary from blockchain to blockchain and the Ethereum network is known to have the most unstable gas fee charge among blockchain networks

Gas Fees as a Transaction Charge

Gas fees are usually charged when a user sends tokens from one wallet address to another wallet address. What is known as a gas fee is nothing other than the transaction charge fee that accrues for completing such a transaction.

Reward for Miners/Validators

On the flip side, gas fees are necessary to maintain security and decentralization on blockchains. This task always falls on validators and miners to ensure transaction validation and consensus on the network. The gas fee is what serves as the fuel that keeps the entire chain on.

Conclusion

Gas fees are essential to how the blockchain functions. They are the oil that lubricates the entire blockchain network, making it a win-win for network stakeholders.

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