Description: The network fee is a cost associated with processing transactions on a blockchain, paid to miners or validators who ensure the integrity and security of the network. These fees are fundamental in the cryptocurrency ecosystem, as they incentivize participants to validate and confirm transactions. In the context of blockchain technology and decentralized finance (DeFi), network fees play a crucial role in the sustainability and functioning of platforms. In proof of stake (PoS) systems, validators are selected to create new blocks and, in return, receive these fees as a reward for their work. The amount of the fee can vary depending on network congestion and the user’s urgency for their transaction to be processed. Additionally, network fees help prevent spam on the blockchain, as users must pay to perform transactions, limiting the number of malicious operations. In summary, network fees are an essential component that ensures the operability and security of blockchain networks, incentivizing validators and maintaining system integrity.
