Network Fees

Network fees, also known as gas fees, are the price you pay for using a specific blockchain to conduct a transaction. Each transaction made on the blockchain network requires you to pay a minimal cost in the form of network fees.

 

The network fees collected from users help generate revenue for the blockchain’s operators and are also distributed as rewards among validator nodes that help run the decentralized infrastructure. Some blockchains charge a fixed transaction fee or network fee, while others could see the amount fluctuate based on the level of activity on the network.

One of the most prominent examples of the latter is Ethereum, which sees network fees rise high due to congestion due to many transactions being processed. The leading dApp platform enjoys exceptionally high levels of use which cause network fees to soar high at times, causing inconvenience to users who wish to transfer smaller amounts of payment on its platform.