What Is the Gas Fee?

What is a Gas Fee?

Gas fees are the fees users pay when executing transactions or interacting with smart contracts on a blockchain network. These fees are used to reward miners (or validators) for processing transactions and maintaining the normal operation of the network. Different blockchain networks have various fee structures. Below are examples of gas fee mechanisms based on the BTC network, EVM-compatible chains, and the TRON network.

1. Bitcoin Network Gas Fee

Bitcoin (BTC), being the first blockchain network, uses a Proof of Work (PoW) consensus mechanism. Miners solve complex mathematical problems to package transactions, and gas fees (also called transaction fees) are used to reward miners for transaction verification. Bitcoin gas fees are typically based on the transaction size in bytes, rather than the transaction amount.

• Gas Fee Calculation: Gas Fee = Transaction Size (bytes) * Fee Rate per Byte (satoshis/byte)

• Transaction Speed: Users can increase their transaction confirmation speed by paying higher gas fees. Miners prioritize transactions with higher fees.

• Network Status: Bitcoin gas fees fluctuate significantly, especially when the network is congested.

Example:

• BTC Transfer: When the network is not busy, the gas fee for a transfer is approximately $1 to $2; when the network is congested, it can increase. The transaction fee depends on the data size of the transaction, and if there are multiple inputs (such as consolidating small transactions), the gas fee may be higher.

2. Gas Fees on EVM-Compatible Chains

EVM (Ethereum Virtual Machine)-compatible chains generally use "Gas" as the unit for transaction fees. Gas prices are determined by the level of network congestion, and users can set their own gas price to influence the priority of their transactions. Typical EVM-compatible chains include Ethereum, BNB Chain, and others.

• Gas Fee Calculation: On EVM-compatible chains, the fee is determined by Gas Price (unit price) and Gas Limit (amount), with the formula: Gas Fee = Gas Limit * Gas Price

• Transaction Speed: Users can speed up transaction processing by paying a higher gas price.

Example:

• Ethereum (ETH) uses ETH for gas.

• BNB Chain (BSC) uses BNB for gas.

• Polygon (MATIC) uses MATIC for gas.

3. TRON Network Gas Fees

The TRON network calculates transaction fees using "Energy" and "Bandwidth." Users can acquire free energy and bandwidth by staking TRX or pay a certain amount of TRX to complete transactions. TRX transfers can be completed using daily refreshed bandwidth, which allows for one free transfer. If bandwidth is insufficient, TRX is used to pay for the transaction.

• Bandwidth: Used for standard TRX transfers, typically free. Users receive a certain amount of free bandwidth each day.

• Energy: Consumed when executing smart contracts. If users do not have enough energy, the system automatically uses TRX to cover the cost.

Example:

• TRON Network Gas: Gas can be TRX, or it can be in the form of energy and bandwidth. TokenPocket has innovatively integrated energy subsidy into the system, allowing users to select energy subsidy when performing transfers or interacting with DApps, significantly reducing TRX expenses.

• TokenPocket also supports the use of USDT to cover fees, enabling users to activate transactions, rent energy, or bandwidth, providing a convenient experience for users without TRX or energy.

The gas fees (network fees) charged by the transfer network may vary depending on network conditions. Once a transaction is confirmed, gas fees are non-refundable, regardless of whether the transaction is successful.

Note: Gas fees are charged by the network you choose for the transfer. TokenPocket does not charge any fees!

Watch the video to learn more about transfers and gas fees!