// GLOSSARY -- BLOCKCHAIN & CRYPTO FUNDAMENTALS
What is Gas Fee?
Gas fees are the transaction costs paid to blockchain validators for executing operations — measured in units of computational work and priced in the network's native token, preventing spam and allocating block space.
WHY IT MATTERS
Every blockchain operation costs gas — from simple transfers to complex smart contract interactions. Gas compensates validators and creates a cost that prevents spam attacks.
On Ethereum, EIP-1559 pricing includes a base fee (burned) plus an optional tip (paid to validators). During high demand, gas prices spike as users bid for limited block space.
Gas optimization is critical for developers. Inefficient code means higher fees. Techniques include minimizing storage operations, batching transactions, and using Layer 2 networks.
FREQUENTLY ASKED QUESTIONS
Why do gas fees vary?
Block space is limited. When demand exceeds capacity, users bid up fees. Layer 2 networks reduce this volatility by processing transactions off-chain.
How to reduce gas costs?
Use L2 networks, transact during low-demand periods, batch operations, and use gas-optimized contracts. Many protocols offer gasless transactions via meta-transactions.
Who receives gas fees?
Under EIP-1559, the base fee is burned (reducing ETH supply) and the tip goes to validators. Distribution varies across different chains.