What Is Gas Fee? Meaning & Example
Definition
A gas fee is the cost paid to process a transaction or run a smart contract on certain blockchains. Fees rise when the network is busy.
Related terms
Ethereum is a blockchain platform that runs smart contracts and powers many decentralized applications. Its native coin is used to pay transaction fees.
Smart ContractA smart contract is a program stored on a blockchain that runs automatically when set conditions are met. It powers DeFi, NFTs and many other applications.
DeFi (Decentralized Finance)DeFi refers to financial services such as lending, borrowing and trading built on blockchains using smart contracts. It aims to work without traditional intermediaries but carries technical and platform risks.
What is Gas Fee?
A gas fee is the cost paid to process a transaction or run a smart contract on certain blockchains. Fees rise when the network is busy.
Can you give an example of Gas Fee?
Swapping tokens during a busy period might cost several times more in gas than during a quiet weekend.