Gas fee and transaction fee explanation

What’s Gas fee?

Gas fee is the fee required to successfully conduct a transaction or execute a contract on the Ethereum orBsc blockchain platform, Without the fees, there would be no incentive for anyone to stake their ETH/BNB and help secure the network.

What is transaction fee?

transaction fee is a charge that a service enjoyer has to pay every time for the service. The cost of the transaction fee varies depending on the service used.

How is Gas fee charged on BSC & ETH?

BSC has relatively low fees. In BSC, 1 gwei is 10-9 or 0.000000001 BNB. With an average gas price of around 6.5 gwei, sending 10 BNB should cost less than ten cents. In fact, sending ten or even a hundred times that amount still shouldn't cost you more than 20 cents.

The gas fee is calculated using Gas Limit * Gas Price per Unit.

So if the gas limit was 20,000 and the price per unit was 200 gwei, the calculation would be 20,000 * 200 = 4,000,000 gwei or 0.004 ETH.

Understanding Gas fee

The concept of gas was introduced to compensate miners for their work done on maintaining and securing the blockchain, Without the fees, there would be few reasons to stake ETH or BNB and become a validator. The network would be at risk without validators and the work they do.

Gas Fees are determined by the amount of network traffic, supply of validators, and demand for transaction verification. The higher the demand and traffic, the higher the fees. When traffic and demand is lower, fees become lower.