The Tech Quiz - Season 20

in hive-109435 •  8 months ago 

Greetings my steemian friends and bloggers of this great community. I am delighted to be a participant of the contest organized by @malikusman1

GAS FEE AND ITS IMPORTANCE

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Gas fee

Imagine making bank transaction most especially transfer from one bank to another bank or within the same bank and you are charge for each transfer, Take for instance in the united bank of africa, transactions ranging from 100naira - 5000naira is charge a fee of N10.75, from 5000 - 10,000 could be charged N26, I don't know how they do it but I am sure they have someway of calculating. Same is the case for gas fee, there are charges deducted after or on every transaction done on a blockchain, the ethereum blockchain is mostly known for this deductions, other blockchain make use of the gas fee but it pertinent to note that not all blockchain make use of gas fee. Just like the charges in bank transfer increases on a bulky amount, the charges in a transaction increase based on complexity and amount of tokens transferred.

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Blockchain

We are all steemians. It is also important to note that Steem does not support gas fees but makes use of resource credits to perform transactions. Gas fee paid for a particular crypto transactions is based on the blockchain network, for example the BTC blockchain transaction pays gas fee in BTC, the Ethereum blockchain pays gas fee in Ethereum, Binance smart chain pay gas fee using the BNB currency.

HIGHER AND LOWER TRANSACTION FEES

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Source

Before the existence of the Ethereum network only transaction fees were known but the term gas fee was coined by Ethereum founder that is why it is contextually related to Ethereum. The benefit of the gas fee is that it provides security to the block-chain transactions, it makes it impossible and expensive to attack a blockchain network by spamming numerous transactions on it. Gas aids quick transaction validation. It gives control over transactions.

High demand on transactions leads to an increasing gas fee, and BTC has a very high gas fee. When comparing networks like BTC and Cardano or ADA it could be observed that BTC has a higher gas fee compared to ADA or EOS. Gas fees in the Ethereum blockchain could be high due to network congestion.

I Invite @vickymoon @eberechi10 and @vickydear to join in this contest

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