Gas Fees: Why Do You Need to Pay Them for Bybit Web3 IDO?
With most financial transactions, one or both parties involved are responsible for various types of transaction fees. Likewise, when you complete a cryptocurrency transaction, you may be responsible for paying a similar type of transaction fee to the blockchain platform that’s used. In the case of the Ethereum blockchain, gas is charged.
What Are Gas Fees?
Gas fees are charged for all transactions completed on the Ethereum blockchain. They specifically cover the cost incurred by the blockchain for executing the requested transaction.
On the Ethereum blockchain, miners who perform necessary maintenance and security functions must be suitably compensated for their efforts. Ethereum originally charged gas fees to cover this important expense. In September 2022, the proof of stake (PoS) algorithm debuted. As a result, those who stake their ETH are now able to earn gas fees as a reward. The reward is determined by the quantity of ETH that a user has staked. Gas fees are also allocated to pay validators conducting transactions on the blockchain.