Game7 (G7) is a web3 gaming hub with a sustainable economy, using its G7 token for governance, staking and rewards. Explore its growing blockchain ecosystem.

 is an area of rapid expansion in the blockchain industry. While this growth spells more choices for gaming enthusiasts, there's an apparent roadblock within the niche: many platforms that host or develop on-chain games struggle with building sustainable economies or expansion models.

Game7, a Layer 3 (L3) gaming-focused platform, aims to change the status quo by championing a distinct economic model designed to support long-term growth for gamers, developers and the platform as a whole. G7's six-stage economic loop is the key to ensuring sustainable growth in the 

The platform's first components went live in early 2023, and the project announced its mainnet and native token launches in February 2025. With over 100 games and 200,000 downloads notched by mid-February 2025, Game 7 is quickly gaining traction in the blockchain gaming industry.

 (G7) is a decentralized platform that acts as a hub for 

 games and focuses on establishing a sustainable economy for gamers and developers.

 The platform leverages the G7 Network, an L3 chain that also utilizes the underlying Arbitrum One Layer 2 (L2) network. Generally, L3 networks are specifically designed for specialized use cases and extend the default functionality of their L2 platforms. In the case of the G7 Network, using L3 technology allows its platform to leverage Arbitrum's great scalability, cost efficiencies and 

 (EVM) compatibility, while offering a transaction and development environment tailored to web3 gaming use cases.

Game7 was founded in 2021. The first components of the platform were launched in early 2023. In February 2025, the platform celebrated the launches of its mainnet and native token, G7. Between early 2023 and the present (early 2025), the platform has attracted over 100 games and achieved over 200,000 unique downloads.

Game7's primary mission is to achieve sustainability for all parties involved (known as Citizens in Game7) — gamers, developers and the overall platform — through its meritocratic reward system, and its economic loop model, whose six steps are as follows:

This cycle keeps repeating, creating a thriving ecosystem whose players and developers benefit from its growth.

There are three main components of the Game7 ecosystem (in addition, of course, to its foundational L3 chain, the G7 Network): Summon, HyperPlay and World Builder.

Summon is Game7’s component that’s designed to support community growth, game economies and digital ecosystems. It offers modules and features, such as avatars, progression systems, reputation tracking, white-label marketplaces and dynamic quests. 

In short, Summon equips developers and community builders with tools to create and successfully expand their communities. For instance, Summon powers the Game7 Portal, which players can use to engage in quests, earn rewards and build their reputation. It also allows users to govern a G7 nation/community through DAO-based participation.

's exclusive gaming integration, HyperPlay serves as Game7’s environment for discovering and distributing web3 games. It lets players easily connect their wallets to games, carry over their tokens and 

, and access marketplaces and in-game quests using a single interface. HyperPlay is designed to simplify user experience with its web3 overlay technology, which supports seamless integration with wallets and external platforms.

It also provides developers with powerful tools, such as wallet APIs, APIs for multiple game engines, no-code SDKs and quest integrations. These tools are designed to make the job of distributing and promoting web3 games as efficient as possible.

World Builder is a tool that helps developers build web3 games more efficiently by providing essential infrastructure and services. It includes marketplaces, 

 (DEXs), account systems and analytics to track player behavior. 

Everything that a web3 game developer needs to create games with easy integrations is assembled in World Builder, making it an ultimate “game developer toolbox.” Developers can use it to quickly link players' web3 accounts, gain insights into player actions (both in and out of the game) and manage in-game economies.

 (ARB), forms the technical backbone of Game7. It offers great scalability, low costs and high throughput — properties that are essential for a blockchain to ensure a great user experience in web3 gaming. The network’s Free Economic Zone creates free access to products and services, and provides subsidies to game creators in order to optimize the process of attracting new players. 

The network provides resources to support games, based on how well they’re doing, with a system that unlocks more resources as the game succeeds. This creates a meritocratic reward system that helps both game and platform grow together.

The platform’s native cryptocurrency, G7, is an 

 with contract addresses on both Arbitrum (ARB) and 

G7 is used for governance, staking and reward payouts to developers and players. Token holders can participate in on-platform governance votes. However, the governance model of Game7 isn’t just a simple “one token = one vote” model. Instead, the platform uses a weighted score for voting power calculations that’s based on G7 holdings, as well as a range of other factors: participation in games, in-game achievements and staking contributions. By staking G7, users can earn Diamonds, points that can be used to uncover more G7 rewards.

G7’s total and maximum supply is 10 billion, with supply allocation shares per the chart below.

, Game7 announced a G7 token generation event (TGE) 

. Early active users of the platforms are eligible, with 600 million tokens (6% of the total supply) on offer through the campaign. A second airdrop campaign featuring 900 million tokens is scheduled for distribution following the TGE event.

The G7 token is available on Bybit’s Spot market as a 

. You can also take advantage of Bybit’s 

 to grab a share of the 100 million G7 prize pool.

Under the terms of the campaign, new users can earn G7 rewards by accumulating a deposit volume of at least 10,500 G7, or by depositing at least 100 USDT and trading 100 USDT worth of G7 via their first trade. Existing users can also qualify for rewards by trading at least 200 USDT worth of G7 on the Spot market. The campaign is valid through Mar 4, 2025, 9 AM UTC.

As of Feb 25, 2025, the G7 token is trading at $0.004, which is 81.8% lower than its ATH of $0.02318 on Feb 12, 2025, and 59.5% higher than its ATL of $0.002646 on Feb 17, 2025.

Long-term price forecasts for G7 are relatively bullish.DigitalCoinPrice 

 average rates of $0.0145 in 2027 and $0.0229 in 2030, whileCoinCodex 

 the token to trade at around $ 0.00436 in 2027 and rise to $ 0.0144 in 2030.

Of the most critical challenges faced by web3 game developers, one item is often at the top: achieving sustained player engagement while ensuring the economic viability of the gaming environment. That's where many on-chain gaming initiatives fail as they struggle to balance user engagement and platform sustainability. With its dedication to meritocratic rewards and a structured economic loop system, Game7 endeavors to build precisely the system that game developers around the world dream of — viable, economically sustainable and — at the same time — rewarding for players.

Also among the platform's strategic initiatives is the continual development and expansion of its ecosystem. With more gaming titles joining Game7, we're likely to see further validation of its economically sustainable model. Since Game7 has just launched its mainnet and native token, let's see if the project's simultaneous focus on sustainability and engagement is indeed an effective model for nurturing a web3 gaming hub.

Beginner

game7.png

Game7 (G7): Creating a Self-Sustaining Gaming Ecosystem

Celo, Chainlink, Hyperlane, and Velodrome have introduced Super USDT, a crosschain version of USDT on the OP Superchain, aimed at enhancing stablecoin interoperability and liquidity. 

The S&P 500 dropped 0.5%, extending its losing streak to three days amid a tech selloff. Investors await earnings and the PCE index. Gold nears $2,950 after a record $2,956, driven by falling US yields and strong ETF inflows, but buyer exhaustion looms. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.3%, with Bitcoin and Ether dropping by 1.89% and 6.11%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is VANA, which surged nearly 23.4% after YZi Labs backed its mission to revolutionize user-owned data in AI.

Vana (VANA), founded in 2018, is an EVM-compatible Layer 1 blockchain enabling users to own, share, and monetize their data via DataDAOs while maintaining privacy. 

, marking its first AI investment post-rebrand. Vana’s blockchain enables user-owned data sharing for AI, addressing the $1T personal data economy. The funding will expand Vana’s DataDAO ecosystem and data financialization across industries.

Check Out the Latest Prices, Charts, and Data of 

Celo, Chainlink, Hyperlane, and Velodrome have introduced Super USDT, a crosschain version of USDT on the OP Superchain, aimed at enhancing stablecoin interoperability and liquidity. Fully backed by USDT reserves on Celo, it leverages Chainlink’s CCIP and Hyperlane to enable seamless transfers across Optimism-based networks. This solution addresses liquidity fragmentation and supports Optimism’s goal of a unified ecosystem. Super USDT is now accessible on multiple chains, promoting broader adoption and scalability.

Yesterday, BTC Spot ETFs recorded a total net outflow of $357.8M, including $59.5M from GBTC and $298.3M from non-GBTC ETFs.

 $100M from top investors, driving $440M+ in deposits to its upcoming DEX, Ethereal. Users can earn airdrop points by depositing USDe, with no lockup and a 30X multiplier on Ethena deposits, boosting eligibility for future rewards.

2.png

Super USDT Launches on OP Superchain to Boost Crosschain Liquidity and Interoperability

Learn how to trade spot pairs on Bybit, explore key order types, and discover top trading pairs. Get started with crypto spot trading for both beginners and pros.

 is one of the primary ways many people first engage with the crypto market. Most beginning traders start their crypto journeys through the spot market, often using simple market orders — direct and immediate swapping of one crypto asset for another. Experienced crypto veterans also engage in spot trading, albeit with more advanced orders for strategic execution. 

 (CEXs), offers an intuitive trading platform designed for both beginners and experienced traders, providing a wide variety of additional order types. 

A particularly useful feature of Bybit’s Spot market is the ability to use established 

 (USDT), for many of the trades, ensuring stability and liquidity. Bybit offers a vast selection of trading pairs with USDT, including major cryptocurrencies like 

 (XRP), as well as select low-cap assets. 

In this article, we’ll cover everything related to crypto spot trading, and spot opportunities on Bybit. Whether you’re a beginner looking to swap USDT for BTC instantly or a seasoned pro searching for profitable spot opportunities, this article is for you.

Crypto spot trading involves directly purchasing and selling cryptocurrencies, usually with immediate settlement. Traders can execute various order types, such as market orders at current prices, limit orders at predefined prices and stop orders to automate entry or exit strategies. 

, spot trading involves direct ownership of assets and is typically settled immediately, or upon reaching a specified target price.

Spot trades are often contrasted with futures, the most popular type of derivatives. When trading futures, you don’t immediately own the asset. Instead, you hold a contract that tracks its price, realizing a profit or loss in the future (at the contract’s expiration) after you’ve triggered the contract execution. Standard futures have predefined maturity periods when the contract settles, and you buy or sell the asset at the agreed-upon price. In contrast, perpetual futures — aptly named because they have no expiration date — can be settled at any time when you decide to close the contract.

The most common and simplest form of spot trades is the market order. This type of order contains an instruction to buy or sell an asset immediately, at the best available price in the market. Market orders guarantee execution, but not the price, which will be fulfilled at the current rate at the time of the actual order processing.

Market orders generally execute near the requested price. However, depending upon a range of factors, such as market volatility, liquidity levels, order size and even the time of day, there will likely be a difference in the price between the time of the request and the time of the order execution. This difference is known as 

While market orders are the most common and well-known variety of spot trades, many more types of orders are available to traders. Within Bybit’s extensive range of spot order types, there are three basic order varieties 

Limit orders are instructions to buy or sell a crypto asset at a specific (or even better) price. The order only gets filled if the market reaches the specified price or improves upon it, giving you control over the price at which you buy or sell. If the market doesn’t reach that price, the order won’t execute. 

For example, let’s say the current value of Bitcoin is 90,000 USDT. If you want to buy 1 BTC for 88,000 USDT (or an even lower price), you place a limit order for that price (88,000 USDT). If the market price of BTC drops to 88,000 USDT or below, your order will be executed. If the price stays above your desired limit of 88,000 USDT, the order won’t be fulfilled.

Conditional orders are executed when certain predefined conditions are met. These conditions may represent various reference prices, such as 

Bybit offers traders a sophisticated and varied range of spot order types to choose from, as well as competitive spot trading fees, access to promising new cryptocurrencies and even 

Above, we discussed three main spot order types offered by the platform: market, limit and conditional orders. Additionally, Bybit offers a range of other, more advanced spot order types: take profit and stop loss, iceberg, TWAP, one-cancels-the-other (OCO), post-only, time in force selections and trailing stop orders. Experienced spot traders are encouraged to review these order types via our relevant 

In Bybit’s Spot market, there are two primary types of traders — 

. Takers execute trades and consume liquidity in the platform’s 

 as their orders match with those on the order book. Meanwhile, Makers add more liquidity to the order book with their orders. Both takers and makers on Bybit are charged a transaction fee of just 0.1% per order on the amount traded. The fee is calculated based on the amount of cryptocurrency being bought. There’s no transaction fee for canceled orders, or for orders that aren’t completely fulfilled.

The 0.1% fee applies to non-VIP users of the platform. Depending upon your trading volume over the previous 30 days, you may qualify for one of the 

. The higher your VIP level, the lower your transaction fees. The table below shows the taker and maker fees applicable to each VIP level.

You can also access margin trading opportunities via Bybit’s Spot market. 

 trading are typically associated with derivatives products. However, Bybit offers margin trading within its Spot market, allowing users to borrow funds to increase their trading position. These trades significantly increase the available liquidity for your orders. They may also magnify your gains and losses.

Additionally, you can access cryptocurrencies of promising early-stage projects via Bybit’s Spot Trading 

. These crypto assets may deliver excellent returns, though due to their early-stage nature they also come with increased investment risk.

Bybit’s Spot market offers a wide variety of spot pairs for trade. The leading pairs by volume usually involve popular high-cap assets, such as BTC, ETH, SOL or XRP on one side, and the USDT stablecoin on the other. Other popular trading pairs include high-cap stablecoin-to-stablecoin pairs — e.g., 

/USDT. In most cases, the pairs come with margin trading opportunities, offering leverages of up to 10x.

The image below shows the top 10 pairs on Bybit Spot by trading volumes, as of Feb 25, 2025.

 through one of the accepted payment methods. For crypto, this includes transferring funds from your external 

 or account on a different exchange. For fiat payments, you can deposit funds via bank transfers, card payments, eligible third-party providers and online payment processors.

After your account has been funded, you can start trading on Bybit using the steps covered in the section above for USDT-based pairs, as well as any other spot pair.

: Log in to your account and hover over the left panel on your main trading page. This will bring up the available pairs on the market. You can also select the 

Alternatively, you can type in a desired crypto asset in the search box to bring up all of the available pairs for it.

: Select the desired pair, and then fill in the order details in the panel on the right. 

: Specify your preference for either a standard spot trade or a margin-based one. 

: Enter the amount of cryptocurrency you wish to purchase, review your selection and click on 

: A confirmation window will pop up. Review your order details 

 price, quantity and total order value — and click on 

Conclusion: Getting Started With Spot Trading on Bybit

In addition to the unmatched variety of order types offered on Bybit Spot 

market orders, limit orders, conditional orders and more advanced

 Bybit’s Spot trading platform offers high security, deep liquidity levels in its order book, competitive maker and taker fees, hundreds of crypto assets on offer, margin trading opportunities and access to promising early-stage coins via the Adventure Zone. 

With all of these benefits, Bybit’s Spot market is an ideal environment for crypto spot traders, both beginners and seasoned pros. Moreover, starting on the platform is quick and easy — just fund your account and trade following the steps described above to experience one of the world's leading crypto spot trading environments.

bybit spot trading tutorial.png

How to Trade Spot Pairs on Bybit

The potential approval of a Litecoin Spot ETF could provide institutional and retail investors with a regulated, accessible way to gain exposure to Litecoin.

 may be on the verge of a breakthrough. The crypto world is buzzing with excitement over the potential approval of a Litecoin Spot ETF, fueled by the SEC’s acknowledgment of filings and growing institutional interest. This article discusses what a Litecoin Spot ETF is, where things stand and how it could open the door to mainstream adoption and drive price surges. Could this be the transformative moment Litecoin has been waiting for?

 investment that directly holds Litecoin (LTC), allowing investors to gain exposure to its price movements without having to buy and manage the cryptocurrency itself.

, which derive their value from a crypto token’s 

 contracts, a spot ETF holds the actual cryptocurrency. This structure ensures that the ETF’s price closely tracks the real-time market price (in this case, of Litecoin), which provides a more accurate and transparent investment vehicle for both retail and institutional investors

Litecoin Spot ETFs, like other ETFs, would operate by holding an actual crypto asset — in this case, Litecoin (LTC) — in a secure custodial account, typically managed by a trusted financial institution or custodian. This would allow you to invest in Litecoin without needing to buy or store the cryptocurrency yourself. Instead, the financial institution holds actual Litecoin in a secure custodial account, and the ETF provider creates shares that represent a proportional claim on those reserves. These shares are listed and then traded on traditional stock exchanges, so you can buy and sell them just as you would with any stock.

A Spot Litecoin ETF’s share price is designed to track Litecoin’s real-time market value, minus a small daily management fee. This share price is determined by taking the total worth of the Litecoin that’s being held, subtracting any accrued fees and then dividing by the number of shares available. The management fee is deducted by effectively selling a tiny fraction of Litecoin each day, which means that over time, the Spot ETF’s net asset value (NAV) may lag slightly behind Litecoin’s spot price. 

To keep the ETF closely aligned with Litecoin’s market price, large institutional players known as authorized participants (APs) step in. APs buy or sell shares to exploit any price discrepancies. This 

 process ensures that the Spot ETF’s trading price remains in sync with Litecoin’s real-time value.

When you invest by buying shares of a Litecoin Spot ETF, the issuer will use your money to acquire more Litecoin, which is then added to the reserve backing the ETF, thereby increasing it. Conversely, when investors sell, the issuer may liquidate a corresponding amount of Litecoin to return cash. This setup provides investors exposure to Litecoin’s price movements without the hassle of buying, storing and managing LTC directly.

A Litecoin Spot ETF would also offer the benefits of regulatory oversight, in addition to greater accessibility as compared to trading on cryptocurrency exchanges. 

The concept of a Spot ETF isn’t new in the crypto space. 

, with several approved in various jurisdictions. However, Litecoin’s unique reputation as "the silver to Bitcoin's gold" makes it an attractive candidate for a Spot ETF. Moreover, its lower transaction fees and faster block times only add to its appeal.

With the success of Bitcoin Spot ETFs over the past year, the appetite for crypto-centric investment products has been on the rise. Litecoin is currently on the radar now, with 

 leading the charge with the first application for a spot Litecoin ETF in October 2024. Their request was subsequently listed on the Depository Trust & Clearing Corporation (DTCC) system under the LTCC ticker. This listing is a preparatory step, indicating readiness for potential trading upon approval. Following Canary Capital's lead, other major asset managers, 

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged these filings, initiating a review process that can take up to 240 days. This acknowledgment suggests a more favorable regulatory environment, especially with recent administrative changes under President Donald Trump's administration, which is perceived as crypto-friendly. 

Still, the SEC has historically been cautious about approving crypto-related ETFs, due to concerns over market manipulation, custody and investor protection. However, growing institutional interest in cryptocurrencies and the approval of Bitcoin Spot ETFs have sparked optimism for Litecoin Spot ETFs within the near future.

Analysts are optimistic about the prospects of approval. Bloomberg ETF analysts James Seyffart and Eric Balchunas 

 of SEC approval for a Spot Litecoin ETF by the end of 2025. This optimism is partly due to Litecoin's classification as a commodity by the Commodity Futures Trading Commission (CFTC), a categorization that may align more closely with SEC regulatory standards. 

Current Impact of Litecoin Spot ETF Applications on Crypto Markets

Anticipation surrounding a potential Litecoin Spot ETF has significantly boosted Litecoin's market performance. Recent developments — such as Canary Capital's ETF listing on the DTCC platform under the ticker LTCC — have intensified speculation about imminent approval. This optimism is reflected in Litecoin’s price, which has doubled since the first filing with the SEC. Some analysts predict the price 

 this year, driven mostly by the spot ETF applications. Litecoin’s market cap has also surged over 46% in February 2025 alone, climbing to $9.48 billion.

However, while the prospect of a Litecoin Spot ETF has injected bullish sentiment into the market, it's essential to approach this potential development with cautious optimism. The 

, and while current trends are promising, they’re subject to rapid changes based on regulatory decisions and broader market conditions.

As of Feb 25, 2025, LTC is trading at $115.55, reflecting the market's positive response to these recent developments.

What Will It Mean If a Litecoin Spot ETF Application Is Approved?

The potential approval of a Litecoin Spot ETF would signify a key milestone for Litecoin (LTC) and the broader crypto market. It carries significant implications for both investors and the broader cryptocurrency market.

While the approval of a Litecoin Spot ETF could democratize access to Litecoin investments, enhance market liquidity and signify a positive shift in regulatory attitudes toward cryptocurrencies, potential investors are advised to approach with care. The performance of any crypto spot ETF is subject to crypto market volatility and fluctuations. Investors need to 

The potential approval of a Litecoin Spot ETF could mark a major turning point for Litecoin and the broader crypto market. Institutional interest and SEC acknowledgment have already fueled price surges and optimism. If approved, such an ETF would boost accessibility, increase market liquidity and strengthen regulatory confidence, and these developments could drive mainstream adoption. However, regulatory hurdles remain, and while prospects are promising, investors should exercise prudence and due diligence. Whether this is Litecoin’s breakout moment depends upon final SEC decisions and broader market dynamics.

Intermediate

litecoin etf.png

Litecoin Spot ETF Approval: Could This Be LTC's Breakout Moment?

Crypto

Blockchain

Bitcoin

Blockchain transaction fees are implemented to expedite a transaction validation process and to keep the network fluid. But why do the fees fluctuate? Find out more.

Blockchain-Transaction-Fees.jpg

In 1998, Chinese engineer Wei Dai first introduced the concept of “

.” Unlike conventional currency, digital currency only exists online. Users can exchange cryptocurrency online after purchasing tokens using “real” — i.e., traditional or fiat — currency. Cryptocurrency eliminates the need for a central controlling authority, such as a financial institution or government office, and instead creates a fast, easy and effective way for people around the world to exchange money.

About a decade after the idea of cryptocurrency was first described, an innovator using the pseudonym “Satoshi Nakamoto” 

 the concept behind Bitcoin. Today, Bitcoin (or BTC) is one of the most popular forms of cryptocurrency. While Bitcoin has eliminated the need for a central authority, it hasn’t removed the costs associated with the technology underpinning cryptocurrencies. Knowing how this technology works can help you better understand transaction fees — and how to minimize your costs when using cryptocurrencies.

All verified Bitcoin transactions are stored via 

, a type of database which stores data electronically. The primary difference is that databases use tables to structure their data, while blockchains store data in blocks. When a block is filled, it’s added, time-stamped and “chained” to the previous one. This creates a record with readily accessible data and an immutable timeline.

Like databases, blockchains require multiple computers to manage and store data. However, databases use servers, which tend to be owned by a specific person or entity, whereas blockchains store data on multiple computers owned by numerous people or entities.

Bitcoin’s network includes thousands of computers called 

, all working together to verify transactions, fill blocks and keep the system functioning.

For a blockchain to function at its best, it must be secure, decentralized and scalable. The blockchain trilemma, a concept introduced by a programmer (and Ethereum founder) 

, refers to the idea that blockchain projects struggle to meet all three ideals. 

Blockchain developers are using the concept of the trilemma to further refine networks and create tools to achieve optimal functionality.

Blockchain is designed to be democratic and immutable. The blockchain security is maintained through coding, as well as consensus algorithms which dictate the number of network nodes required to confirm transactions before finalization. And since the blockchain is made up of a series of blocks that record the data in hash functions with timestamps, it has proven its resilience against data tampering and hacks. 

One of the jobs of central institutions is to prevent

 and similar issues. However, they’re vulnerable to 

 and other security issues. The idea of a decentralized blockchain network is deciphered as an environment where no one needs to know anyone since each node is passed on with the same information on a distributed ledger. 

Decentralized systems such as Bitcoin are essentially invulnerable to these issues, and consensus algorithms or mechanisms provide further system security while preventing double-spending and enforcing peer equality. Shall anyone attempt to alter or corrupt the ledger, the majority of network participants need to reach a consensus to do so.

During periods of heavy use, traffic jams can occur, slowing transaction processing and driving up costs for users. A scalable blockchain is essential to maintaining a competitive edge with centralized networks.

To overcome and address the blockchain trilemma, some developers recommend making direct modifications to the network — layer-1 solutions, such as Ethereum. Others have suggested developing secondary networks, or 

, designed to run alongside the blockchain, such as 

 on Bitcoin or Litecoin. It’s important to note that blockchain technology is still in its infancy, and as it evolves, so will potential solutions to the blockchain trilemma.

In Bitcoin’s early days, miners worked quickly to validate transactions. As the digital currency has exploded in popularity, transactions have become more numerous and complicated. The 

 was initiated to speed Bitcoin transaction validation.

Fees are tied to the size of the transaction and input age. In other words, a transaction that comprises more bytes that take up more block data will have higher transaction fees. Additional fees can speed the transaction through the system, essentially placing it in a priority queue. In other words, you can pay more to have transactions validated faster.

Collected fees go to the miners, who validate and record the Bitcoin transactions and help keep the system fluid and functional by:

In other words, Bitcoin transaction fees protect and preserve the integrity of the Bitcoin network.

Conceptually, Bitcoin transaction fees represent the speed with which a user wants their transaction validated on the blockchain. Although the decentralized nature of Bitcoin makes it easy for anyone to 

— which means verifying and recording transactions to form a block and are joined by a chain. However, the process of mining Bitcoin, or BTC, is both complex and expensive. Mining rigs are expensive and often times consume massive amounts of electricity, while the block subsidy and transaction fees help offset these costs and incentivize miners whenever a new block has been validated. 

Miners are granted transaction fees and block subsidies as a “block reward” whenever they successfully added a block to the blockchain. The block subsidy is fixed with each Bitcoin mining and was reduced by half (

) which will happen every four years or every 210,000 blocks. Looking back at 2009 a mined Bitcoin would earn you 50 BTC and in 2012, but as the years passes by, the rewards were halved, and the latest halving in 2020 set the rewards at 6.25 BTC.

 to fall, thus increases the computation power and energy required to mine new blocks. However, the rising transaction fees help incentivize miners to maintain network security and sanity. The transaction fees are determined based on a few factors:

The last point is under the user’s control. If you need your Bitcoin transaction to be processed urgently, you can opt to pay a higher fee to prioritize it. If your transaction is less urgent, you can opt for a lower fee. In this case, the transaction will remain in the memory pool (or mempool) until the traffic slows.

The mempool can be thought of as a queue. When you initiate a transaction, it goes to the mempool. Transactions which are waiting remain in the mempool until a miner confirms and adds them to the block. When the mempool fills, miners choose Bitcoin transactions with higher fees first.

This system can keep transactions moving more smoothly, but it can also lead to a kind of bidding war. Many people using cryptocurrencies are willing to pay a premium to ensure their transactions are completed first. However, this tactic can backfire, especially during periods of heavy use. Some users end up overpaying fees, which forces other miners to also increase their fees.

The biggest names in cryptocurrency are Bitcoin (BTC) and Ether (ETH) and understanding how fees are calculated can ensure you’re paying a fair amount to complete your transaction, without getting caught up in a bidding war or unnecessarily stagnating in the mempool.

To calculate bitcoin fees, you have a couple of options. With some wallets, you can automate the process, which allows you to choose how quickly you want your transaction completed and pay accordingly.

 and then multiply based on the size of your transaction. Bitcoins are divided into Satoshis, which are one hundred-millionth (or 0.00000001) BTC. If your transaction is 225 bytes and you choose the rate of 100 Satoshis per byte, then you can expect to pay about 22,500 Satoshis in fees, since 100 x 225 = 22,500. That currently translates to just over $14, considering ​​

Until 2021, everything on Ethereum’s network was based on “gas.” Gas is the unit linked to the amount of computing power necessary to complete a specific transaction. Aptly named, gas refers to the energy used to keep the Ethereum network moving.

Under this payment system, everything has been associated with gas. A simple addition problem might require just 5 gas units, while completing an actual transaction may have a cost of 20,000. To determine the transaction fee, a user would need to know the gas price, which is measured in 

, or the equivalent of 0.000000001 (one-billionth) ETH.

To calculate, you’ll need to multiply the gas cost by the gas price. For example, you may have a transaction that will cost 20,000 gas units, and the price of gas is 100 

. Your total cost for that transaction will be two million gwei, because 20,000 x 100 = 2 million. That translates to just slightly above $7, assuming 

,” which referred to your spending limit, or how much gas you wanted to use for a specific transaction. Complex transactions required more work, so their gas limits would necessarily be higher than for simpler transactions.

This system proved to be cumbersome, however, and many users were underpaying, which could lead to the rejection of their transaction or the necessity of overpaying. (Think of it as putting too many stamps on an envelope you want to mail, instead of risking having the letter returned for insufficient postage.) The 

 changed the way users pay for transactions. ETH users instead would pay a base fee for specific transactions. Part of each collected fee is “burned,” which removes coins from circulation, and the rest goes to the miners. ETH users also have an option to “tip” miners, which can speed the processing and recording of their transactions.

Transaction fees are a necessary cost of performing financial transactions in the 21st century, and cryptocurrency transactions are no exception. Both Bitcoin and Ethereum link the cost of the transaction with its size, and users can pay more to speed the process. The average bitcoin transaction fee fluctuates from day to day, depending on the amount of traffic and other factors. The same applies to the Ethereum network.

 are between $2 and $5, which translates to between 3,700 and 9,170 Satoshi. The 

 ranges from $2 to $7, or 0.00056 to 0.002 ETH.

BTC and ETH networks are flourishing, with myriad transactions being completed and verified every day. On the Bitcoin network, 

 are completed daily. Ethereum, on the other hand, completes over 

Completing your transactions on a day when traffic is light can lower your transaction rate without forcing you to compromise on verification speed.

Hefty Bitcoin transaction fees are attractive to miners, but might not be as popular with users. The fee structure can be such that some users are paying the equivalent of their transaction amount in fees, particularly when it comes to smaller transactions.

Transaction fees aren’t the only issue dogging Bitcoin. Scalability is also proving to be something of an Achilles’ heel. The Bitcoin protocol clearly defines the block size and generation, which restricts Bitcoin to about seven 

, or TPS. This has led to Bitcoin branching off into additional forks, such as Bitcoin Gold (BTG) and 

 (BCH). Ethereum, on the other hand, has larger blockchains and can process about 20 TPS and the 

 is paying the way for a more scalable solution.

To change the Bitcoin protocol, its users must all agree on and choose a specific software. Lightning Network offers an alternative that’s designed as a Layer 2 payment protocol, which means it‘s layered on top of the blockchain. With Lightning Network, you can complete numerous transactions before closing the payment channel and settling the final transaction with the blockchain.

The Lightning Network is an off-chain solution that sits on top of a blockchain not exclusively on Bitcoin’s network primarily helps to process blockchain payments quickly and securely without potentially lengthy block confirmation times. It even allows users to complete cross-chain atomic swaps instantly without relying on third parties. 

One of the key highlights of the Lightning Network includes its ability to allow for small payments, even less than a Satoshi. The process is more private, allowing for multiple individual transactions to occur without being broadcast via the blockchain. As its name suggests, the Lightning Network is fast too, with virtually no limits on TPS. Settlement times are equally fast, with the average transaction settling in about a minute or less. Fees are lower as well.

For those in search of privacy, speed and affordability, Lightning Network offers an excellent alternative.

A consensus mechanism or algorithm refers to a specific protocol designed to ensure that networks of computers can work together efficiently while maintaining security. The algorithm is often used to ensure the crypto network can function effectively and prevent certain types of system attacks.

If Bitcoin’s primary weakness is its scalability, a more scalable consensus mechanism may help lower costs. Currently, Bitcoin runs on a 

, which requires each node to solve complex mathematical problems to validate a transaction. The first to complete the problem can add the next block to the chain. The block is then verified, with the data entered into the blockchain.

 is both more scalable and sustainable than PoW. PoS links mining power to ownership stake. Miners don’t need to expend energy solving mathematical problems but are instead limited to mining a specific number of transactions linked to their ownership stake. A miner with a one percent ownership stake would then be able to mine one percent of the blocks.

PoS systems are also less vulnerable to a certain type of economic attack. A miner would have to own more than half of the digital coins on a network to launch a system attack, which would be disadvantageous to their interests.

Blockchain Transaction Fees: Why Do They Matter?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards