Transaction Fee
By CoinGecko | Updated on Mar 03, 2020
Time and resources are required in order for miners and validators to hash and sign a block on the blockchain, a transaction fee the the blockchain users is an incentive mechanism for the miners and validators to contine playing their role and securing the network with computational powers.
Transaction fees are usually nominal and free-market based, where users can set the amount of fee they are willing to pay and the miners able to set the preference for which transaction to mine and reward from until an equilibrium is met.
Related Terms
Buy Wall
Anomalously large buy order(s) at a single price point that reflects as a "wall" in the order book.
Mineable
A cryptocurrency is said to be "mineable" when it has the system thrugh which miners can be rewarded with newly-created cryptocurrencies for creating blocks.
Validator
A block-signing participant of a Proof of Stake blockchain network, whom have significant tokens staked on the network.
Trading Volume
The amount of the cryptocurrency that has been traded in the last 24 hours.
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