Smart Crypto Starts With Transaction Simulation For Predictable Costs
A network of nodes validates blockchain transactions. The nodes earn crypto as fees, incentivizing them to process these transactions. Fees increase as users compete to achieve higher processing speeds when there are more transactions than usual on a blockchain. This sometimes happens when a particular cryptocurrency’s price increases. More users tend to move their assets around during these periods, leading to more transactions and higher fees.
Likewise, increased demand for a particular token leads to correspondingly higher fees. This happens when there is a lot of hype around a given project. Bitcoin transaction fees were relatively high when the Bitcoin-based protocol BRC-20 was popular in the spring of 2023.
