May 16 2021

What is Gas fees and what is its working concept?

 

Gas fees is a term that refers to the transaction fees associated with any transaction made on any blockchain. It can be considered as the fees paid to the banks when you transfer money from one account to another.

Unlike the banking transaction fees, Gas fees are not fixed, they are affected by the congestion of the system, so the more users are undergoing transactions at the same time, the more the cost of gas fees will go up.

Gas fees are paid in a certain token dependent on the blockchain on which the transaction is done,i.e, if the transaction is done on the Ethereum blockchain then the Gas fees must be paid in Ethereum.