What to Expect in Web3: Transaction Fees

In Web3, most actions require paying a transaction fee. You may also hear this called a gas fee, depending on the network. This fee is normal. It is not a charge added by the digital wallet or by the app you are using.

Transaction Fees Defined

Transaction fees are paid to the network that processes your action. They compensate the network participants who validate, include, and secure transactions. In Web2, the platform usually absorbs infrastructure costs. In Web3, you pay directly for the network to execute your request.

Transaction Fees Are Variable

Transaction fees are not fixed prices. They change mainly because of demand. When more people are trying to submit transactions at the same time, competition increases and fees usually go up. When fewer people are active, fees often go down. Fees can also vary based on what the transaction does. Some actions require more computation or more data, which can increase the cost.

Gas Fees vs. Transaction Fees

“Transaction fee” is the general idea. “Gas fee” is a common term used on networks where transactions consume “gas” as a measure of computation. Users will see both terms in the ecosystem. They describe the same concept: paying the network to process an action.

Ethereum Fees and Bitcoin Fees at a Glance

Fees are not identical across networks because networks work differently.

On Ethereum: Fees are tied to computation and network demand. Actions like interacting with a contract can cost more than a simple transfer, because the network is doing more work.

On Bitcoin: Fees are generally tied to transaction size and how busy the network is. You are paying for inclusion in the next blocks, and higher fees often mean faster inclusion during busy periods.

The important point for users: the fee is set by the network conditions and the type of action, not by the app.

What Users Expect vs. What Actually Happens

Some users expect the same action to always cost the same amount. In practice, the same action can cost more or less depending on current demand. This does not mean the digital wallet or app changed pricing. It reflects what the network requires at that moment. Some users also expect the fee to go to the product they are using. In practice, the fee goes to the network. The app is just the interface you are using to submit the request.

Open networks need a way to stay usable and secure. Fees help prevent spam and abuse, and they ensure that network resources are allocated to real actions. This is part of the ownership model: you are not asking a company to run an action for you, you are paying a network to process it.