Base fee refers to the minimum amount of cryptocurrency required to process a transaction on a blockchain network. This fee is paid to the miners who validate and add transactions to the blockchain. The base fee is set by the network protocol and can vary based on network demand and congestion.
In times of high network activity, the base fee may increase to incentivize miners to prioritize certain transactions over others. Conversely, during periods of low activity, the base fee may decrease to encourage more transactions to be processed.
Users have the option to include a higher fee than the base fee to expedite their transaction or to ensure it is included in the next block. Conversely, users can choose to set a lower fee than the base fee if they are not in a hurry for their transaction to be confirmed.
Overall, the base fee plays a crucial role in maintaining the security and efficiency of blockchain networks by providing an incentive for miners to validate transactions promptly.
