A transaction fee is a small charge paid by a user to the network when submitting a transaction to a blockchain. This fee compensates miners or validators for processing and validating the transaction, and for securing the network. It also serves as a mechanism to prioritize transactions during periods of high network congestion. The fee structure can vary significantly between different blockchain protocols.
Context
Transaction fees are a recurring topic in cryptocurrency news, particularly during periods of high network activity when fees can surge. Debates often surround the fairness and efficiency of fee markets, and how they impact network accessibility. Scaling solutions like rollups aim to drastically reduce transaction fees, making blockchain usage more affordable for a wider user base.
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