XDC (XinFin Network) charges a small gas fee for each transaction on the network. The gas fee is paid in XDC, which is the native cryptocurrency of the XinFin Network.
The gas fee is used to compensate validators who process and validate transactions on the network. The fee amount varies depending on the network's congestion and the complexity of the transaction, but it is typically very low compared to other blockchain networks.
The low gas fee is one of the features that make XDC attractive for businesses and organizations that need to perform a large number of transactions on the blockchain without incurring high fees.
Is crypto "gas fees" similar to bank fees? Crypto gas fees and bank fees are not exactly the same but share some similarities. Crypto gas fees are fees paid for the processing and validation of transactions on a blockchain network.
These fees are paid to incentivize validators who maintain the network's security and process transactions on the blockchain. Gas fees are typically paid in the cryptocurrency of the network and are used to cover the cost of computational resources required to process the transaction.
Bank fees, on the other hand, are fees charged by banks for various services, such as maintaining a checking account, transferring funds, or ATM withdrawals. These fees are charged to cover the cost of providing these services and generating revenue for the bank. While both gas fees and bank fees are fees paid for using a particular service, the main difference lies in the way they are charged.
Crypto gas fees are typically charged per transaction, while bank fees may be charged monthly, annually, or per transaction, depending on the type of service.
Additionally, the purpose of gas fees and bank fees also differs. Gas fees are designed to incentivize validators and maintain the security of the blockchain network, while bank fees generate revenue for the bank and cover the cost of providing services to customers.