What it means
The small fee paid to a blockchain network to process a transaction. It's also called a network fee.
On most networks you need to hold the network's own token, such as ETH, to pay it. That's an extra step many people find confusing.
How it works
Defied covers the network fee on supported actions, so you only ever hold euros and dollars.
Related terms
| Term | What it means |
|---|---|
| Transaction | One action recorded on a blockchain, such as a payment, an exchange or a deposit. |
| Base | A public blockchain built by Coinbase that runs on top of Ethereum, with low fees and fast confirmations. |
| Layer 2 | A network built on top of a main blockchain such as Ethereum that handles transactions faster and for less. |
This glossary explains terms in general. It isn't investment, tax or legal advice.