Gas Fee

The fee paid to a blockchain network to process and confirm a transaction, especially on smart-contract chains like Ethereum.

Definition

Gas fees compensate the network (validators or miners) for the computation and storage a transaction requires. On busy networks fees rise with demand, and complex operations such as interacting with a smart contract cost more than simple transfers. High or unpredictable gas fees can make small on-chain bets or withdrawals uneconomical, which is one reason Layer-2 networks and cheaper chains are popular for crypto gambling. Gas is paid in the network's native token, for example ETH, separate from the amount being wagered or withdrawn.

Worked example

Withdrawing a small amount of ETH during peak congestion might cost several dollars in gas, sometimes more than the withdrawal itself is worth.

Why it matters

Fees materially affect the real cost of crypto play and withdrawals; professionals model them into UX and settlement design.

Related

Note: Fee levels are highly variable, changing minute to minute with network demand and differing by chain; any specific figure is only a snapshot.