Definition ∞ Transaction Costs are the expenses incurred when buying or selling a good or service, beyond the actual price of the item. In digital asset markets, these include network fees (gas fees), exchange fees, and potential slippage. Minimizing these costs is crucial for efficient market participation and the viability of microtransactions.
Context ∞ The discussion around Transaction Costs is particularly relevant to the scalability and usability of blockchain networks. Analysts and users are keenly observing how network congestion, protocol upgrades, and the adoption of layer-2 solutions impact these costs. Efforts to reduce transaction expenses are considered vital for fostering broader adoption and enabling new use cases for digital assets.
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