As you start using Web3 and your Flooz Wallet, you’ll quickly discover that there are transaction fees associated with swapping, sending assets, minting NFTs, and more.
We’ll help you understand how these gas fees work and explain why they can sometimes be so expensive!
The costs of security and decentralization:
- The blockchain is a decentralized ledger that records transactions. It’s like a colossal spreadsheet where a new row gets added every time someone does something like making a trade or sending money.
- Transactions are written on the blockchain by miners (you may already be familiar with the term crypto mining), which then get confirmed by validators. Most normal people like us don’t actually interact with the blockchain directly; instead, a miner will do it on our behalf in exchange for a small fee (called Gas).
- Gas fees are always paid in ’Gwei’ to miners. You must have enough Ether in your wallet whenever you want to transact for this fee. Non-custodial wallets like Flooz doesn’t control or receive this gas fee.
- Gas costs can fluctuate based on supply and demand in the market, and miners prioritize the transactions based on the amount of gas submitted by people like you or me (the more you pay in gas, the higher the chance of your transaction being prioritised by the miner is). This can be useful when you want to get in or out quickly on a fast-moving asset.
- If your gas fee is too low though, or if the demand suddenly increases after placing a market order, your transaction might fail or take longer than expected.