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😎 The 'GAS RATE' can be confusing! This infographic will explain everything you need to know, Binancian!
💡What Are Gas Fees?
Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on a blockchain network. These fees are not fixed and can vary depending on the network's congestion and the complexity of the transaction.
🔔Why Do We Have Gas Fees?
The primary reason for gas fees is to ensure the security and efficiency of the blockchain network. They act as an incentive for miners or validators (the individuals and companies that process transactions on the blockchain) to prioritize and process transactions. Without gas fees, malicious actors could potentially spam the network with countless transactions, leading to congestion and inefficiency.
It's important to clarify that gas fees are not collected by Bitget Wallet, or other interfaces/protocols; instead, they are paid directly to the miners and validators of the blockchain network where your transaction occurs.
💡How Do Gas Fees Work?
When you initiate a transaction on a blockchain, such as sending cryptocurrency to another wallet or executing a smart contract, you will need to pay a gas fee. This fee is paid in the native cryptocurrency of the blockchain (for example, ETH on the Ethereum network).The amount of gas required for a transaction depends on its complexity.
Simple transactions, like transferring cryptocurrency, typically require less gas than more complex interactions, such as executing smart contracts in DeFi applications. A swap is considered one of smart contract executions.
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