Transaction Fee
By CoinGecko | Updated on Mar 03, 2020
Time and resources are required in order for miners and validators to hash and sign a block on the blockchain, a transaction fee the the blockchain users is an incentive mechanism for the miners and validators to contine playing their role and securing the network with computational powers.
Transaction fees are usually nominal and free-market based, where users can set the amount of fee they are willing to pay and the miners able to set the preference for which transaction to mine and reward from until an equilibrium is met.
Related Terms
Hyperledger (Hyperledger Foundation)
Hyperledger is an open source collaborative effort to create blockchain technologies hosted by The Linux Foundation since 2016.
Trustless
Entirely verifiable, without needing to trust or assume an action is done completely and in good faith.
Derivatives
A financial instrument which derives its value from the performance of an underlying asset or index (eg. gold, crude oil)
Pump and Dump Scheme
A market manipulation method to drive up the price of an asset before profiting by driving it back down.
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