gas fee

/gas fee/ · noun · Development · Origin: 2015

Definitions

  1. The fee paid to validators for processing a transaction or executing a smart contract on a blockchain like Ethereum. Gas prices fluctuate based on network demand — during peak congestion, a simple token transfer can cost more than the asset being transferred. Measured in gwei (billionths of ETH).

    In plain English: The transaction fee you pay to use a blockchain, like a toll road. When lots of people are trying to use the network at once, the toll goes up.

    Example: She tried to mint an NFT during a popular drop, but the gas fee was $150 for a $50 transaction, so she waited for off-peak hours.

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