What is a network fee, and how can I change it?

A network fee is necessary whenever you transact with any type of cryptocurrency. This fee, which is paid in the native currency of the blockchain (not tokens), is given to the blockchain network to facilitate the transfer of the digital asset. The fee can vary, largely depending on the network load during the transaction. If the network is heavily loaded with pending transactions, you can expect the fee to be higher as block creators prioritize transactions with higher fees.

You can check and adjust the fee in the 'Network Fee' tab before your crypto transaction. It's also possible to manually set the fee, but keep in mind that a low fee might cause your transaction to be delayed or stuck.

More information on how to handle a stuck transaction due to a low fee can be found here. We recommend sticking to the advised fee to avoid failed or stuck transactions. 

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In Noone Wallet, we comply with the EIP-1559, which introduces a dynamic Base Fee for each block. This Base Fee, which users must pay to include their transactions in a block, is designed to prevent network congestion and maintain a seamless user experience by keeping the network's block size within a target range. However, the Base Fee may increase while your transaction is pending. This could result in your transaction being underpriced and at risk of getting stuck. To ensure predictable transaction settlement under EIP-1559, we recommend setting a Max Fee that anticipates potential increases in the Base Fee.

Users also have the option to add a Priority Fee to the Max Fee. This Priority Fee is an extra tip given to block creators to incentivize them to prioritize the user's transaction. The Priority Fee can be chosen by the user based on the desired speed of transaction processing.

Thus, within EVM blockchains (e.g., Ethereum, BSC, Polygon, Arbitrum, Avalanche), the network fee for transactions is determined by three parameters:

• Max Fee: This is the highest total transaction fee a user is prepared to pay, representing the total cost a user is willing to bear for their transaction to be processed. It helps users avoid accidentally overpaying for their transactions. If the Max Fee is set too low, the transaction may fail to process or take a long time to confirm.
• Max Priority Fee: This is the maximum tip a user is willing to offer to block creators to expedite their transaction. This part of the overall transaction fee goes directly to block creators as an incentive to include the user's transaction in the next block.
• Gas Limit: This is the maximum amount of gas a user is willing to expend on a transaction or smart contract execution. It sets a limit on the computational work a transaction can perform. If a transaction or smart contract execution surpasses the gas limit, it will be reversed, but the user will still be charged for the gas used.

In Noone Wallet, you can choose between the optimal and custom fees. We recommend you to use the optimal fee to ensure the success of your transaction.

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In Bitcoin-like blockchains, the cost of a transaction depends on two things:

1. Transaction Size: This is determined by how much data the transaction contains, which is influenced by the number of inputs and outputs (recipient addresses) created in the transaction.

2. Fee Rate: This is the amount the sender is willing to pay for each byte of data in their transaction. It's measured in satoshis per byte (sat/byte).

In Noone Wallet, you have three fee choices: Fast, Medium, and Custom.

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Optimism (OP) and Coinbase Base, as Layer 2 solutions, function in a manner similar to the Ethereum blockchain in terms of network fees. However, they also introduce some new concepts. The total fee is generally a combination of Layer 1 (L1) and Layer 2 (L2) fees.

When it comes to Optimism and Coinbase Base transactions, they are recorded on the Ethereum blockchain as well. The L1 fee covers the cost of submitting these transactions to Ethereum. This L1 fee is determined by four factors:

• The current gas price on Ethereum.

• The gas cost for publishing the transaction on Ethereum.

• A fixed overhead cost in gas.

• A dynamic overhead cost that adjusts the L1 fee by a fixed amount.

It's important to note that the L1 fee is preset, and you can't manually adjust it in Noone Wallet.

On the other hand, the L2 fee functions similarly to Ethereum's fee structure, comprising three components: L2 Max Fee, L2 Max Priority Fee, and L2 Gas Limit. You can find more information about these components in their respective descriptions above.

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Arbitrum is another Layer 2 scaling solution for Ethereum. When you use Arbitrum, you'll notice that it follows the same fee structure as the Ethereum network. However, it's important to know that the L1 fee is already included in the Max Fee.

Just like on Ethereum, you have the choice between Optimal and Custom fees. We recommend using the Optimal fee to increase the likelihood of a successful transaction.

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In the TRON network, the fee you pay is determined by two factors: bandwidth and energy.

Bandwidth: Bandwidth is like a measure of the size of your transaction data stored in the TRON blockchain. The larger your transaction, the more bandwidth it consumes. Currently, the price for one unit of bandwidth is 1000 SUN, and each user gets 1500 bandwidth units every day.

Energy: Energy is similar to the concept of gas limit in the Ethereum blockchain. It's needed to process transactions on the TRON network. The amount of energy you require depends on the specific smart contract you're interacting with. Different smart contracts, based on their complexity, consume varying amounts of energy.

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Cardano has a special fee system designed to run its operations and maintain network security.

Transaction fees come into play when you send ADA (Cardano's native cryptocurrency) from one address to another. They are also applied when you execute smart contracts or perform other activities on the Cardano blockchain. These fees are paid in ADA and serve to cover the costs of the computational resources required to handle transactions and smart contracts.