Gas fees are transaction fees paid to use a blockchain network, especially on Ethereum and other smart contract platforms. They compensate validators for processing transactions and running code.
How It Works
Every transaction or smart contract action requires computational work. Gas measures that work, and users pay fees based on how much gas is needed and how busy the network is.
When demand is high, users may pay higher fees to get transactions confirmed faster. When demand is low, gas fees usually fall.
Why It Matters In Crypto
Gas fees matter because they affect the cost of using DeFi apps, NFT markets, wallets, and token transfers. High fees can make small transactions uneconomical.
A simple example: swapping tokens on Ethereum may cost more during periods of congestion, while the same action may be cheaper during quieter network conditions.