Gas Fees Explained: Why Blockchain Transactions Aren’t Free
Gas Fees in BlockchainGas fees are essential for blockchain networks like Ethereum. They ensure transactions and smart contracts are processed.
Why Gas Fees MatterThey compensate validators for securing the network and processing transactions. Think of them like fuel for your car
How Gas Fees WorkGas fees are calculated based on the units used and current prices. Ethereum fees are quoted in "gwei," a fraction of ETH.
Network ProtectionGas fees prevent attacks by creating financial barriers. Malicious actors face high costs when trying to overwhelm the system.
Supply & Demand ImpactDuring busy periods, gas fees rise, just like surge pricing in ride-sharing. Lower fees occur during less congested times.
Future & SolutionsGas fees are essential to blockchain, but developers main aim is to reduce costs. This can be seen in Ethereum's deflationary mechanism, as well as Layer 2 solutions like Optimism, which help lower costs