network Transaction fees
Chain's first chart (in US$ terms):
- Green area: Total transaction fees per day, in US$;
- Blue line: Average transaction fee, in US$.
Chain's second chart (in coin terms):
- Green area: Total transaction fees per day, in coins;
- Blue line: Average transaction fee, per byte of data accepted into each block, in coin's smallest denomination (except in Ethereum's case).
Note that Ethereum's total network "transaction fees" are calculated by a two-step process. First, you need to understand the "gas" price. This is an extremely small figure, intended to be decoupled from ether's market price. Here we are measuring it in szabos, which amounts to 0.000001 ether per 1 szabo. Ethereum's denominations actually go much smaller than this, down to something called wei. One ether would amount to 1e18 wei; or a 1 with 18 zeros behind it. In any event, after the average gas price is understood, one would need to multiply this price by the total amount of gas units purchased in each block. Users must purchase any number of "gas" units to run different computations and contracts on Ethereum's network.
The market history of both these figures is graphed below. Here, we can also see the dynamic limit that Ethereum places on gas units which can be purchased in each block. This limit is set dynamically by miners. Both are reflected in the right axis.
network transaction fees explained
As discussed in the network cost / block reward section, the "block reward" is essentially a revenue item for miners, and a cost item for the rest of us.
Remember, it usually compromises both inflation (newly "mined" coins) and some form of transaction fees.
This section isolates and graphs transaction fees only. Typically, miners choose which transactions they want to include in each block, based on how high their transaction fees are. The higher the transaction fee, the more likely your transaction is to be included and eventually confirmed in the blockchain. A customary way to measure this in the market, in coin terms, is how many units of the coin's smallest denomination it takes to process 1 byte of data in each block (for example, "satoshis per byte" in Bitcoin's case).
Transaction fees are the "most visible" cost that everyone participating in the network can experience. Transaction fees have historically been incredibly small for each peer participating in the blockchain world, though with scale and more users, we have seen transaction fees rise overall.
Displayed above are transaction fees first in US dollar terms; then second in each chain's native coin terms.