Execution Fees

Definition ∞ Execution fees are charges incurred for processing transactions or executing smart contract operations on a blockchain network. These fees compensate network validators or miners for their computational effort and for securing the network. They vary based on network congestion and the complexity of the operation.
Context ∞ The level of execution fees, often referred to as gas fees on Ethereum, significantly impacts the usability and cost-effectiveness of decentralized applications. High fees can deter users, leading to discussions about scaling solutions and alternative layer-2 networks. News frequently reports on fee market dynamics and their influence on network activity and profitability for validators.