Baskin Logic Crypto Academy

Lesson 6 · Logic path

What a network fee is

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A network fee is a small payment to the machines that record the move. It is not a school fee. It is not tuition.

Busy networks cost more. Quiet ones cost less. The fee is for space in the next block of records.

That is the object. The school does not tell you when to move. The school does not tell you what to buy.

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Key terms

Gas fee
A gas fee is the cost of getting a transaction processed on a blockchain, most often on Ethereum.
Layer 2
A layer 2 is a network built on top of a main blockchain, called layer 1, to make transactions faster and cheaper.
Transaction
A transaction is a record of crypto moving from one address to another.
Ethereum
Ethereum is a blockchain that can run programs called smart contracts, not just send payments.

Check what you learned

Five questions from this lesson. Your score stays on this device.

1. What is a network fee?

2. What does the fee buy?

3. When does a network usually cost more?

4. On some networks this fee has another name. Which one?

5. Does this school tell you when to move?

Show the answers
  1. A small payment to the machines that record the move. A network fee pays the machines that record your move. It is not a school fee.
  2. Space in the next block of records. The fee is for space in the next block of records.
  3. When it is busy. Busy networks cost more. Quiet ones cost less.
  4. Gas fee. On networks like Ethereum, the network fee is often called a gas fee.
  5. No. The school explains what the fee is. It does not tell you when to move.
Logic · Up nextNext: Lesson 7 — What an exchange is

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