Academy Crypto Basics

What are blockchain transaction fees

Adding each transaction to the blockchain enables the operation indexing and correct performance within the network.

When performing any actions within the blockchain, users pay a commission to the network, the so-called gas. Then the commission is distributed among all validators of the network. Validators are users whose computer devices contain a blockchain node (a mini-server). The gas price is not static, it depends on the network congestion and the rate of the parent token (in the case of Bitcoin, Ether and Binance Smart Chain).

The main blockchain networks, the progenitors of all subsequent networks:

  • Bitcoin blockchain (BTC)
  • Ethereum blockchain (ETH)

There are also various sidechains and forks, that is, add-ons over the main blockchain and improved versions of the blockchains:

  • Binance Smart Chain (BNB)
  • Polygon (MATIC) is a fairly new and relatively cheap and fast network.
  • Cosmos (ATOM) – blockchain constructor for creating new networks

When it comes to Bitcoin blockchain, Gas is measured for each byte of information written into the block in the ratio of 0.0000004 BTC per byte that is $ 0.014766 per unit of information. On the average, it estimates $ 7.52.

Speaking of the Ether network, gas is being paid in the network’s parent currency, Ether (ETH). The gas price is indicated in gwei, where 1 gwei equals 0.000000001 ETH (10-9 degrees of ETH).

In the case of the Binance Smart Chain network, 1 gwei is 10-9 BNB, i.e. 0.000000001 BNB. With an average gas price of 20 gwei, shipping 100 BNB worth about $ 3,500 would cost you about $ 0.01.

On the Polygon network, the commission costs approximately 0.000167215 MATIC, that is, respectively, $ 0.000271.

At Cosmos, fees are charged in a whole different way. Everyone who creates their own network inside Cosmos sets the size of the commission themselves. For instance, ZamAgile, Zamzam’s private blockchain will operate inside Cosmos.

Since cryptocurrencies are prone to volatility, we recommend that you find out the average gas price and network load in special scanners first before actually making a transaction:

https://explorer.btc.com/

https://etherscan.io/chart/tx

https://bscscan.com

https://explorer-mainnet.maticvigil.com/

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