Network Fee
Quick Answer
A network fee is the cost charged by a blockchain to process a transaction, varying greatly by chain — from dollars on Ethereum mainnet to fractions of a cent on Layer 2.
Full Definition
A network fee is the cost charged by a blockchain network to process a transaction. It compensates validators for their computational work and resources. Network fees vary by blockchain — Bitcoin and Ethereum mainnet charge higher fees, while Layer 2 networks and alternative L1s (Solana, Polygon) charge significantly less. In crypto payment processing, network fees are either absorbed by the merchant, passed to the customer, or sponsored by the payment provider like SpacePay.
Related Terms
Node
A node is a computer participating in a blockchain network by validating transactions and maintaining a copy of the ledger. Payment providers run nodes for low-latency transaction processing.
Nonce
A nonce is a sequential number assigned to each transaction from a wallet, ensuring ordered processing and preventing replay attacks in payment systems.