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Transaction fee

A transaction fee is a small amount of money charged to a user for processing a transaction on a blockchain network. These fees are paid to the network’s validators, typically called miners in the case of Bitcoin or nodes in the case of Ethereum, as an incentive for them to validate and record the transaction on the blockchain. The fee is usually a small fraction of the total value of the transaction, and is typically measured in the native cryptocurrency of the network.

Transaction fees are important to ensure that the blockchain network can process and validate transfers in a timely manner. They also help to prevent spamming of the network by making it more expensive to make multiple small transactions.