Why is there a need for network fees?

Mining is the process through which cryptocurrency transactions are gathered, verified and recorded into a digital ledger known as blockchain.

For proof of work blockchains like Bitcoin and Ethereum, the miners get block rewards. ‘Block reward’ refers to the cryptocurrency rewarded to a miner when they successfully validate a new block. A block is composed of transactions that are already verified or confirmed by the miners, and they are chained together to form what we call a blockchain.

Proof-of-Stake systems usually use transaction fees as a reward. When a validator gets chosen to forge the next block, it will check if the transactions in the block are valid, sign the block and add it to the blockchain. As a reward, the validator receives the transaction fees that are associated with the transactions in the block.

The work done by miners and validators is essential for maintaining the integrity of the network. This is why fees are essential in order for a network to work smoothly.

Slope Wallet does not collect any of the rewards or fees.