Smart Contracts

Smart contracts

Now imagine these highways and flyovers are equipped with add-ons like automated GPS, and automated toll collection. These upgrades are installed with the help of software (coding) to make them smart and programmable. Similarly, blockchains like Ethereum, Solana, Binance Smart Chain, etc., use code snippets called “smart contracts.” These smart contracts enable the creation of decentralized protocols and applications, which allow users to transact across the blockchain easily.

Smart contract details of $PUFF

Transaction fees

Now, let’s talk about how these blockchains actually keep the show running. Think of it this way: you must pay toll fees whenever you use these highways and flyovers, right?

Similarly, you must pay a transaction fee when you send money through a bank or a third-party app like PayPal.

Examples of transaction fees

Similarly, blockchains also require users to pay "transaction fees" to the network to execute smart contracts and other operations. These fees compensate the network of nodes (computers) that collectively validate, process, and maintain the blockchain.

Transaction fee examples on Rabby and Metamask