What Are Gas Fees?
Gas fees are the transaction costs paid by users to have their operations processed and validated on a blockchain. These fees act as compensation for validators (or miners) who provide the computational power and security necessary to record data on the network.
Every transaction requires a specific amount of "work" (Gas Cost). To manage this, users set a Gas Limit, which is the maximum amount of units they are willing to spend.
The total fee is determined by multiplying this work by the Gas Price. On Ethereum, this is often measured in Gwei (one-billionth of an ETH). Setting your gas limit too low can cause a transaction to fail while still consuming fees.
Network congestion is the primary driver of high fees. In Proof-of-Work systems or older Proof-of-Stake models with limited throughput, users must outbid each other for space in the next block. This "bidding war" can drive costs from a few dollars to over $100 during peak traffic.
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