In web3, the term “gas fee” refers to the payment needed to execute transactions on the blockchain. These payments compensate the node operators who keep the blockchain functioning. This validation helps ensure the blockchain has a permanent, immutable record. We’ll walk you through the purpose of gas fees, what impacts them, how to avoid paying high fees, how fees differ by blockchain, and how Spectrumdigitalhub makes it easy to keep costs to a minimum. Let’s dive in.

Ethereum calls gas “the fuel that allows [the network] to operate, in the same way that a car needs gasoline to run.” Gas fees compensate the entities, called node operators or network validators, who validate transactions on the blockchain. Each blockchain compatible with Spectrumdigitalhub has different gas fees. These fees differ depending on how each chain validates transactions. Users often want to know who receives the money from these gas fees, and the answer to that depends on the method each blockchain uses to verify transactions.