A network fee is something the blockchain charges to execute a transaction successfully. Some blockchains like Solana or Bitcoin prefer to call these network fees transaction fees, whilst others like Ethereum and Polygon prefer the term gas fee.
A blockchain gas fee is like a small payment you make when using certain blockchain networks to do things like buying an NFT or executing a smart contract. This fee helps the network validators, who are like the "helpers" of the blockchain, to make sure everything works smoothly and honestly.
Think of gas fees as a way to motivate these validators to do their job well. Just like a rocket needs fuel to lift off, the blockchain needs "gas" in the form of fees to keep things going smoothly.
In a nutshell, gas fees are like small tips you pay to ensure your blockchain transactions are processed correctly and securely by the network validators.
Sometimes, these gas fees can be a bit unpredictable. When lots of people use a blockchain network and submit many transactions, it can become congested, like a busy road. As a result, the validators, who are like the traffic managers, have more work to do, and this can make the costs go up.
On the other hand, when there are fewer transactions or more validators available, the demand for blockchain services slows down, and the average gas price tends to go down too. It's a bit like when there's less traffic on the road, things can move more smoothly, and it becomes cheaper for everyone.
At MoonPay, we will always give you an estimate of the network fee before you confirm your order!