Why Is the Gas Fee Model Essential for Maintaining Blockchain Immutability?
Gas fees are the transaction costs paid to network validators for executing operations on the blockchain, including deploying and interacting with smart contracts. This fee structure prevents denial-of-service attacks by making it economically prohibitive to spam the network.
By requiring a cost for every operation, it ensures that only legitimate, resource-justified transactions are processed, which maintains the integrity and immutability of the chain's state.
Glossar
Network Validators
Role ⎊ Network validators are participants responsible for confirming transactions and adding new blocks to a Proof-of-Stake blockchain.
Immutability
Provenance ⎊ Immutability within cryptocurrency, options, and derivatives signifies the unalterable record of transaction history and contract terms, crucial for establishing trust and mitigating counterparty risk.
Transaction Costs
Expense ⎊ Transaction costs represent the total expenses incurred when executing a trade or interacting with a financial protocol on a blockchain.
Gas Fee Model
Execution Cost ⎊ Gas Fee Model refers to the economic structure determining the computational cost required to process and confirm transactions on a specific blockchain, directly impacting the feasibility and profitability of on-chain operations like derivatives trading.
Smart Contract
Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.