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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.

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Related Terms

Software Development Kit (SDK)
It is a collection of software development tools in one package installation. It is designed to help developing applications for a specific device or operating system (OS).
Non-custodial
It is a decentralized type-of-wallet, where the users owns its private keys.
Central Ledger
Central data repository of a company or bank
Proof of Work (PoW)
A consensus algorithm in which a block is validated via mathematical hashing
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