Mastering transaction fees and gas is key to efficient blockchain use.
Blockchain networks rely on transaction fees to incentivize validators and maintain efficiency. These fees, paid by users, ensure transactions are processed and added to the blockchain. In this article, we’ll explore transaction fees, with a focus on the gas model used in EVM-compatible blockchains and how Routescan helps you manage fees across multiple chains.
What Are Transaction Fees?
Transaction fees are payments made to have your transactions validated and recorded on a blockchain. They serve two key purposes:
Incentivizing Validators: Fees reward validators (or miners) for securing the network and processing transactions.
Preventing Spam: By attaching a cost to each transaction, fees discourage malicious actors from overwhelming the network.
Transaction Fees Across Blockchains
Fee mechanisms vary by blockchain:
Bitcoin: Fees depend on transaction size in bytes—larger transactions cost more.
EVM-Compatible Blockchains: Fees are tied to computational effort, measured in gas, ideal for smart contract-supporting chains.
Other Blockchains: Chains like Solana use base fees plus priority fees, akin to Ethereum’s post-EIP-1559 system.
While we’ll focus on the gas model, Routescan equips you with tools to monitor fees across all supported chains, no matter the system.
What Is Gas?
In EVM-compatible blockchains, gas measures the computational work needed for transactions or smart contracts. Simple actions like token transfers use less gas, while complex contract interactions use more. Gas fees are paid in the blockchain’s native currency (e.g., ETH on Ethereum, AVAX on Avalanche), not the tokens being transferred.
Gas Price and Gas Limit
Three factors determine gas fees on EVM chains, particularly after Ethereum’s EIP-1559 upgrade:
Base Fee: A minimum fee per gas unit, set by the network based on current demand. This fee is burned (removed from circulation) and varies block by block.
Priority Fee: An additional amount of the native currency offered per gas unit to incentivize validators to prioritize a transaction. Also called a “tip,” this is optional and varies based on network conditions.
Gas Limit: The maximum gas allocated for a transaction, based on its complexity and the chain’s requirements. If a transaction exceeds this, it fails.
The gas price (Base Fee + Priority Fee) is measured in a chain-specific fractional unit (e.g., Gwei on Ethereum, where 1 Gwei = 10^-9 ETH). The gas limit sets the maximum gas allocated, but only the gas actually consumed is paid for.
The maximum possible fee = (Base Fee + Priority Fee) × Gas Limit.
While the actual fee = Gas Used × (Base Fee + Priority Fee).
💡Hint: Routescan’s Unit Converter helps you convert between a blockchain’s native currency and its various denominations, such as Wei or Gwei on Ethereum, across supported chains.
Note that the Base Fee + Priority Fee model introduced by EIP-1559 is not universally adopted across all EVM chains. It is fully implemented on Ethereum Mainnet and chains like Polygon PoS that have explicitly adopted it. Some Layer 2 solutions (e.g., Arbitrum, Optimism) use modified versions, while others, such as BNB Smart Chain, retain the legacy auction-style gas model with a single Gas Price bid.
ℹ️ Important Note: Network Demand and Fee Fluctuations. Fees vary with network activity. During high congestion, base fees increase due to greater demand for block space, and priority fees may also rise as users compete for faster transaction inclusion.
Monitoring Fees with Routescan
Routescan’s tools help you:
Track current gas prices on EVM chains: View real-time gas price (Slow, Standard, Fast).
Review historical trends: Analyze past gas price patterns to understand network activity over time.
Explore Gas Guzzlers: Identify addresses with the highest gas consumption, including fees and usage percentages.
Check Gas Spenders: Review addresses with significant gas expenditure.
Analyze Cost of Transaction Actions: Examine gas costs associated with different transaction types.
View Blockchain Fees: Access an overview of fee data across supported blockchains.
Visualize gas trends: Use charts to track historical gas price and gas used across all blockchains, showing trends and spikes over time.
The graph is clickable. The graph displays 'Gas Used' (orange area) and 'Gas Price' (blue area) on a logarithmic scale over the last 6 months, highlighting usage and price fluctuations from November 2024 to May 2025, with notable peaks around early 2025.
💡Hint: You can create your own custom chart to explore gas trends tailored to your needs.