Which crypto network doesn’t charge network fees?

Crypto network fees are an integral part of the crypto and blockchain ecosystem. These fees help ensure the timely and accurate processing of crypto transactions and payments, a task known as crypto mining, allowing us to send cryptocurrencies from one point of the globe to another and receive confirmation within seconds. Naturally, the cost of crypto network fees varies depending on the network. For example, Bitcoin’s network fees might cost more or less than Ethereum’s network fees (also known as gas fees) depending on factors such as network congestion, block space demand, or protocol design (PoW or PoS). Then there are a select few networks that don’t charge any network fees at all. In this article, we explore. 

What are crypto network fees?

Crypto network fees form part of a pricing system that determines the cost of executing an operation on the blockchain. Network fees are essentially an incentive for miners or validators on the network who use valuable energy and resources to process and validate transactions. They also serve to disincentivise malicious actors from spamming the network with empty transactions. The cost of crypto network fees can fluctuate hugely depending on network conditions. 

When a blockchain network experiences high levels of traffic, network fees tend to rise as users compete to have their transaction prioritized by validators. On the other hand, during periods of low activity, crypto network fees decrease, making transactions more affordable. Different blockchain networks apply different kinds of fee structures, for example, Bitcoin and Ethereum apply a dynamic fee structure based on demand, while others, such as Solana and Avalanche, offer consistently low fees thanks to the high scalability of these networks. 

What are the highest crypto network fees?

Given the variability of crypto network fees, no one blockchain is known as having the highest fees. As seen above, fees are highest when demand increases, known to exceed $100 per for complex transactions when network demand peaks. In fact, according to data recorded by YCharts on the 10 June, 2024, Bitcoin’s average transaction fee had risen by over 200% in one year to reach $6.956. 

Some of the highest fees ever recorded were on the Bitcoin blockchain. For example, in September 2023, one user inadvertently paid a transaction fee of around $510,000 (around 20 BTC at the time), supposedly due to error. In November of the same year, an unknown user paid a record-breaking fee of almost $3.1 million (83.6 BTC) to transfer 129 BTC, understood to be the highest fee ever recorded. 

The following table shows the average crypto transaction fee per network in 2024, as well as the highest fee recorded throughout the year in USD.

Which crypto network doesn’t charge network fees?

Despite the fact that crypto network fees are designed to help the blockchain function and keep it fair, some crypto networks eliminate network fees altogether through innovative consensus mechanisms. Although rare, these networks do exist. They work by requiring users to validate two transactions before submitting their own to be processed, and therefore remove the need for miners and validators. 

The IOTA network is one example that doesn’t charge network fees. It uses a directed acyclic graph (DAG) technology called the Tangle, rather than a traditional blockchain. Another example is Nano, which uses Open Representative Voting (ORV) to delegate voting power to representatives who validate transactions without fees. These models, known as fee-free networks, may still incur some costs from third-party services, such as wallets or exchanges. 

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