Overview
A transaction fee is the cost paid to execute a transaction on a blockchain, covering gas and tips. It incentivizes validators and prevents spam. Fees vary with network demand.
How It Works
Fees are calculated from gas used and gas price, which includes a base fee and optional tip. Higher fees attract faster inclusion. The fee market adjusts to congestion.
Why It Matters
Transaction fees determine the cost of using a blockchain and influence user experience. They are a key revenue source for validators. Understanding them is essential for cost management.
Related Concepts
Transaction fees relate to Gas Fees, Gas Price, and Priority Fees. They are shaped by EIP-1559.