> For the complete documentation index, see [llms.txt](https://docs.ucollect.me/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ucollect.me/new-to-web3/start-from-here/transaction-gas-fee-sponsorship-and-account-abstraction/gas-fees-explained.md).

# Gas Fees Explained

**Gas fees** refer to the **transaction fees required to perform operations on a blockchain network**, particularly on platforms that use smart contracts, such as Ethereum. In a blockchain context, "gas" is the unit that measures the **amount of computational effort** required to execute operations like sending transactions or running smart contracts.

When users initiate a transaction or execute a smart contract on a blockchain, they must pay a certain amount of gas to incentivize miners or validators to process and validate their transactions. The concept is similar to fees in traditional banking systems but operates on a decentralized blockchain network.

**The gas fee is determined by** factors such as the **complexity of the transaction** or **smart contract** and the **current network congestion**. During periods of high demand, when many users are trying to execute transactions, the gas fees may increase as users compete to have their transactions processed faster.

**Gas fees help prevent network abuse** and allocate resources efficiently. Users can set the gas price they are willing to pay for a transaction, and miners prioritize transactions with higher gas fees because it represents a higher incentive for them.

It's worth noting that blockchain networks may have different terminologies for transaction fees, and the specifics of how gas fees work can vary between platforms.