OneArt

<h2 id="header-0"><strong>What are transaction fees on a blockchain?</strong></h2><p>A transaction fee is the amount of crypto that you pay to the network as compensation for processing their transaction on the blockchain. When you initiate a transaction, for example, send 1ART to your friend, the transaction needs to be verified and added to the blockchain ledger by network nodes.</p><blockquote><a href="https://oneart.digital/en/blog/what-is-a-blockchain-how-does-it-work" rel="noopener noreferrer nofollow">https://oneart.digital/en/blog/what-is-a-blockchain-how-does-it-work</a></blockquote><p>This requires time, stake, computational resources, and energy (depending on the <a href="https://oneart.digital/en/blog/proof-of-work-vs-proof-of-stake" rel="noopener noreferrer nofollow">consensus</a>). Miners or validators are incentivized to process transactions by earning transaction fees. In fact, it’s similar to money transfer commissions when you pay providers for sending your funds.</p><h2 id="header-1"><strong>Why do you have to pay fees?</strong></h2><p>Initially, fees were implemented on Bitcoin to ensure the miners check and approve transactions correctly. Following the rules must be more profitable for a miner than undermining them, the <a href="https://bitcoin.org/bitcoin.pdf" rel="noopener noreferrer nofollow">whitepaper</a> explains. So, you pay to be sure the network is secure and nodes don’t confirm malicious transactions.</p><p>Ethereum <a href="https://ethereum.org/en/developers/docs/gas/" rel="noopener noreferrer nofollow">docs</a> make commissions much more important: its fees (aka gas) are considered the network’s crucial component. As developers explain, they are sort of an energy source that fuels the blockchain. And that’s understandable since Ethereum is not only a payment system but also a foundation for smart contracts and dApps.</p><blockquote> <a href="https://oneart.digital/en/blog/what-is-ethereum-how-does-it-operate" rel="noopener noreferrer nofollow">https://oneart.digital/en/blog/what-is-ethereum-how-does-it-operate</a></blockquote><h2 id="header-2"><strong>How are fees calculated?</strong></h2><p>The way fees are calculated and the cryptocurrency they’re paid in depends on the network. Let’s check some of the popular ones.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/ff4636b696a2490a9de86058bb9d403f.png" /></p><h3 id="ethereum">Ethereum</h3><p>On Ethereum, fees are called <a href="https://ethereum.org/en/developers/docs/gas/" rel="noopener noreferrer nofollow">gas</a> and paid in ether. The latter’s price is too high to calculate small fees, so the network uses Gwei to denote gas. 1 Gwei &#61; 10-9 ETH.</p><p>Gas used * (base fee &#43; tips) &#61; fee you pay in total.</p><ul><li>A typical ether transfer uses 21,000 units of gas.</li><li>The base fee depends on that from the previous block.</li></ul><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/719f61aa4c56421d8a06988c15bfe1ea.png" /></p><ul><li>Tips (priority fees) depend on how much you’re willing to pay to make validators confirm your transaction faster.</li></ul><p>As of March 11, 2023, the average gas price is <a href="https://etherscan.io/chart/gasprice" rel="noopener noreferrer nofollow">101.26 Gwei</a>.</p><h3 id="bsc">BSC</h3><p>BNB Smart Chain uses a similar scheme, where 1 Gwei &#61; 0.000000001 BNB. As of March 12, 2023, the <a href="https://bscscan.com/chart/gasprice" rel="noopener noreferrer nofollow">average gas price</a> is 6.5252 Gwei.</p><p>Bookmark: <a href="https://oneart.digital/en/blog/what-is-bnb-smart-chain" rel="noopener noreferrer nofollow">https://oneart.digital/en/blog/what-is-bnb-smart-chain</a></p><h3 id="avalanche">Avalanche</h3><p><a href="https://oneart.digital/en/blog/avalanche-explained-how-does-it-work-is-it-a-breakthrough#transaction-fees-on-avalanche" rel="noopener noreferrer nofollow">Avalanche</a> “gas fees” follow a different flow. Commissions on its P-Chain and X-chain are constant and depend on transaction types.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/a44ff27a190a4135b186d716bc75b5cd.png" /></p><p>Source: Avalanche</p><p>Fees on the C-Chain vary due to the network activity: they increase when the network is overloaded and vice versa.</p><h3 id="polygon">Polygon</h3><p><a href="https://oneart.digital/en/blog/what-is-polygon-how-does-it-operate" rel="noopener noreferrer nofollow">Polygon</a> is sometimes called a sidechain or Layer 2 solution based on Ethereum. It was developed to provide scalability and cheaper transactions. Polygon enables the processing of transaction batches independently, thus removing the burden of Ethereum processing all files alone. By conducting transactions outside the main chain, Polygon enhances the speed and efficiency of Ethereum and lowers costs.</p><p>Polygon gas fees are also denoted in Gwei. 1 GWEI &#61; 0.000000001 MATIC.</p><p>Your fee &#61; (base fee &#43; tip) x limit. As a rule, a limit of 21,000 units is enough.</p><p>To check if you don’t pay too much, use a <a href="https://polygonscan.com/gastracker" rel="noopener noreferrer nofollow">tracker</a>. As of March 13, 2023, the average fee is <a href="https://polygonscan.com/chart/transactionfee" rel="noopener noreferrer nofollow">62.125</a> MATIC.</p><h3 id="fantom">Fantom</h3><p>On <a href="https://oneart.digital/en/blog/fantom-explained-what-is-it-how-does-it-work" rel="noopener noreferrer nofollow">Fantom</a>, gas price is also measured in Gwei. 1 Gwei &#61; 0.000000001 FTM.</p><p>The fee you pay &#61; gas unit price x amount of gas. The first criteria changes over time, while the second is a constant for different transactions. A simple transfer would cost you about 0.00079 FTM. To check prices, use <a href="https://ftmscan.com/gastracker" rel="noopener noreferrer nofollow">FTMScan</a>.</p><h2 id="header-3"><strong>Why are crypto gas fees so high?</strong></h2><p>Fees vary due to network congestion, transaction size, and the transaction speed you choose. It works like Uber: the higher the demand, the higher the price.</p><p>Ethereum fees have lowered since the Merge, but it still tops the chart in terms of prices:</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/e7e443195d014da1a71f26298f2f5967.png" /></p><p>Source: Cryptoneur</p><p>How to lower Ethereum and/or other blockchain fees?</p><ol><li>Choose the right time. Use the scanners mentioned above to check the prices.</li><li>You can lower transaction fees by setting a lower gas price, but this may make your transaction slower.</li><li>Use L2 solutions. They will allow you to conduct transactions on a separate chain linked to Ethereum. These networks can offer faster processing times and lower fees.</li></ol><blockquote><a href="https://oneart.digital/en/blog/layer-0-3-all-blockchain-layers-explained" rel="noopener noreferrer nofollow">https://oneart.digital/en/blog/layer-0-3-all-blockchain-layers-explained</a></blockquote><h2 id="header-4"><strong>How to adjust fees in OneArt?</strong></h2><p>Just tap “Transaction speed” and choose low, medium, or high. If you want to input the number manually, tap “Custom.”</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/2b699bd56eb8400e9f6eec2d49132d87.png" /></p><h3 id="follow-official-oneart-channels-to-find-the-latest-info-and-updates">Follow official OneArt channels to find the latest info and updates:</h3><ul><li><a href="https://twitter.com/art_wallet" rel="noopener noreferrer nofollow">Twitter</a></li><li><a href="https://t.me/art_wallet" rel="noopener noreferrer nofollow">Telegram Group</a></li><li><a href="https://t.me/artwallet_official" rel="noopener noreferrer nofollow">Telegram Announcements</a></li><li><a href="https://www.linkedin.com/company/oneart/" rel="noopener noreferrer nofollow">LinkedIn</a></li><li><a href="https://www.youtube.com/&#64;oneart5089" rel="noopener noreferrer nofollow">YouTube</a></li></ul>

What Is Transaction Fee & How to Adjust It in OneArt?

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Alte articole publicate pe 16 mar. 2023

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