Many people actively utilize cryptocurrencies for various purposes, ranging from investments to everyday transactions. However, despite the growing popularity of cryptocurrencies, most users do not fully understand the fundamental self-regulation mechanisms of crypto networks. These mechanisms play a crucial role in ensuring the security, stability, and efficiency of crypto-networks. In this article, we will examine how transaction fees are calculated in these networks and what factors influence their size. Understanding these aspects will help to use cryptocurrencies more effectively and make informed decisions.

Bitcoin

The transaction fee (network fee) in the Bitcoin network depends on several factors:

Market Mechanism:

• The fee system operates on an auction principle. Users set a fee based on their urgency for the transaction, and miners choose transactions with the highest offered fees to maximize their profit.

Network Load:

• When the Bitcoin network is congested, more users try to include their transactions in blocks. Since the number of miners remains the same, the average waiting time increases. Miners usually prioritize transactions with higher fees because they receive these fees as a reward. To have their transactions processed faster, users often set higher fees. This raises the average fee level in the network.

• When fewer transactions are sent to the Bitcoin network, miners must choose between processing transactions with lower fees or idling their equipment. This lowers the average fee level.

Halving:

• Halving is an event where the reward for adding a new block to the blockchain is halved. Miners spend part of their rewards on maintaining and upgrading servers. To ensure mining profits cover these expenses, miners might start including only transactions with higher fees. This raises the average fee level in the network.

Transaction Size in Bytes:

• The fee is calculated based on the transaction size in bytes, not the transfer amount. More inputs and outputs make a transaction larger and increase the fee. For example, receiving many small amounts at different times increases the number of inputs, raising the average fee level.

Market Conditions:

• Fees can also depend on the currency in which they are calculated. If the entire operation is conducted in BTC, the fee depends only on the previous factors. If the end-user pays the fee in another currency, like USD, the size will depend on the USD_BTC exchange rate.

You can track the transaction byte cost by calling the estimatesmartfee function in the network code or using online tools like https://bitcoinfees.net.

Ethereum

The calculation of transaction fees (network fees) in the Ethereum network is similar to Bitcoin's market mechanism but includes improvements for smoother network load and better fee predictability:

Gas Price:

• Transaction fees are calculated in units of "gas" rather than the network's currency. Every operation in the Ethereum network requires a certain amount of gas. More complex operations, like executing a smart contract, require more gas than simple ETH transfers.

Network Load:

• During high network activity, when many users try to make transactions simultaneously, the gas cost increases for two reasons. The base fee increases automatically, raising transaction costs and making transactions less viable during prolonged network overloads. Users also increase the priority fee (tips) to incentivize miners to choose their transactions for inclusion in the next block.

Market Mechanism:

• The automatically adjusted base fee in the transaction fee is much higher than the priority fee, making it easier for users to predict network fees. However, the auction mechanism remains for users who need faster transaction processing.

You can track gas costs by calling the gas price oracle in the network code or using online tools like https://etherscan.io/gastracker.

Tron

The calculation of transaction fees (network fees) in the Tron network introduces two types of "gas" - bandwidth and energy.

• Bandwidth is used for transferring the network currency TRX. Each user receives a certain amount of bandwidth daily, depending on network load. The cost of additional bandwidth is set by the network developers. Users can make several transactions for free, with additional transactions incurring a fixed fee.

• Energy is used for smart contract operations, such as transferring USDT coins. You can obtain free energy through TRX staking. The cost of additional energy is set by the network developers. The amount of energy used per transaction depends on network load and is automatically calculated by the network code.

Thus, the Tron network fee is more stable and predictable, and relatively low for infrequent transactions. Active users can save on energy costs by staking a large amount of TRX or renting energy from other users (energy market).