Definition
The fee paid to process and validate transactions on a blockchain network. On Ethereum, gas fees compensate validators for the computational resources required to execute transactions.
Why It Matters
Gas fees directly impact the cost of using blockchain networks. High gas fees can make small transactions impractical, driving innovation in Layer 2 solutions.
Example
A user pays 0.003 ETH in gas fees to swap tokens on Uniswap during a period of moderate network congestion.
Related Terms
Ethereum
Layer 2
Validator