Network fee

A network fee, sometimes called a gas or transaction fee, is the amount paid to have a transaction processed and recorded on a blockchain. Fees typically compensate the validators or miners who confirm transactions and help protect the network against spam. The cost can vary with demand, transaction complexity, and the specific network, rising when many users compete for limited capacity.

A common misconception is that fees go to a central company or the recipient; they generally go to those securing the network. Fees are usually paid in the network’s native asset. This entry is educational and not financial advice.