Friends.π
Iβm starting a new crypto education series! Every day, weβll learn simple things about crypto, starting from the basics. Letβs learn and grow together
#CryptoEducation
Day 2οΈβ£1οΈβ£
π Today we will learn about Gas Fees and why you pay them in cryptocurrency. β½
Gas Fees are small transaction fees paid to process and confirm transactions on a blockchain.
Think of a gas fee as the delivery charge you pay when ordering something online.
π Simple Example
β’ Online Shopping β You pay a delivery fee. π¦
β’ Blockchain Transaction β You pay a gas fee. β½
Without paying the gas fee, your transaction cannot be processed by the network.
π How Does It Work?
1. You create a transaction (send crypto or interact with a smart contract).
2. Your wallet estimates the required gas fee.
3. You approve the transaction and pay the gas fee.
4. Validators or miners process your transaction.
5. Your transaction is added to the blockchain.
β οΈ Important
β’ Gas fees are not charged by your wallet. They are paid to the blockchain network.
β’ Fees can increase when the network is busy.
β’ More complex transactions usually require higher gas fees.
π Why Is It Important?
β’ Pays validators or miners for processing transactions.
β’ Helps protect the network from spam.
β’ Keeps the blockchain running smoothly.
β’ Ensures transactions are confirmed securely.
π‘ Fun Fact
On Ethereum, gas fees are paid in ETH, even if you are sending another token like USDT or USDC. Different blockchains use their own native coin to pay gas fees.
Day 2οΈβ£0οΈβ£
π Today we will learn about Blockchain Forks and why they happen.
A Blockchain Fork happens when a blockchain splits into two different versions because the network follows different rules.
Think of it like a road that divides into two separate paths. Both paths start from the same place, but each goes in a different direction.
π Simple Example
Imagine your school updates its rulebook.
- Some students follow the new rules.
- Others continue using the old rules.
Now there are two different versions of the same rulebook.
A blockchain fork works in a similar way.
π How Does It Work?
1. Developers or the community propose changes to the blockchain.
2. Network participants decide whether to accept the changes.
3. If everyone agrees, the blockchain continues with the new rules.
4. If the community disagrees, the blockchain may split into two separate chains. This is called a fork.
β οΈ Types of Forks
Soft Fork
- Backward compatible.
- Older nodes can still work with the updated network.
Hard Fork
- Not backward compatible.
- Creates a separate blockchain if some participants continue using the old rules.
π Why Is It Important?
β’ Adds new features and improvements.
β’ Fixes bugs or security issues.
β’ Helps blockchains evolve over time.
β’ Sometimes creates a completely new cryptocurrency after a hard fork.
π‘ Fun Fact
In 2017, Bitcoin Cash (BCH) was created through a hard fork of Bitcoin (BTC). Both blockchains share the same history before the fork but continue as separate networks afterward.