Gas Fees
Fees paid to execute a transaction on a blockchain.
Beginner-friendly explanation
Gas fees are the fees you must pay to process your transaction on a blockchain like Ethereum.
📌 Example:
Sending €50 worth of ETH may cost you €2 in gas fees depending on network congestion.
Intermediate-level insight
Gas fees vary depending on the transaction's complexity and the blockchain's usage (the busier, the more expensive). Users can adjust their gas price to prioritize their transactions.
📌 Example:
During heavy demand (e.g., NFT minting), gas fees can triple within minutes.
Advanced perspective
Gas fees directly impact the profitability of dApps, DeFi strategies, and arbitrage. Optimization mechanisms (batching, Layer 2, MEV-aware transactions) are crucial to minimize costs and maximize efficiency.
📌 Example:
A DeFi arbitrage on Curve Finance is only profitable if the total gas fees are lower than the gross profit earned.
Blockchain & Technology
gas fees, transaction fees, blockchain cost, Ethereum, network congestion, gas optimization, Layer 2, arbitrage, DeFi, batching