Cardano Has Fixed And Predictable Fees

Cardanians.io (CRDNS pool)
Coinmonks
7 min readMay 8, 2024

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Most blockchains use some form of fee market to calculate transaction fees. When a large number of people want to use the blockchain, the fees go up. Fees become more expensive as the demand for block space increases. The amount of fees cannot be predicted in advance and may change. Fees are heavily affected by network congestion, which is not ideal. Cardano does not have this commonly used mechanism. Transaction fees are fixed and predictable. We will explain to you how the amount of fees for transactions and Plutus scripts is calculated. We will also explain how Cardano behaves when it is overloaded and the planned improvement called tiered pricing.

It Is Necessary To Pay For Computing Resources

It is expensive to process a transaction or execute a smart contract in a distributed network. For this to be possible, many computers must be running around the world providing their resources to the network. Running nodes is not free. People who operate nodes expect compensation from the network in the form of regular rewards.

Before a transaction gets into a block, it must be diffused throughout the network. It consumes the computing power of the nodes that must validate the transaction. The transaction is temporarily stored in the mem-pool (temporary memory). After it is inserted into the block, it…

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Cardanians.io (CRDNS pool)
Coinmonks

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