Replying to Avatar BTC_P2P

Economic incentive. Hashing blocks and all its downstream effects (enforcing rules of the protocol, security, maintaining the ledger) must have an incentive. Fees are fair and necessary.
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Clarisse Mcclellan_⚡️ 2y ago

How are this fees distributed and isn’t the incentive the #btc rewards when mining ⛏️? Does the protocol talks about this fees?

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BTC_P2P 2y ago

Fees are part of the incentives of course. There won’t always be a block reward.

Layer 2 / 3 will be the answer for fast / cheap TXs at scale.

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Ronin 2y ago

The fees is to prevent spam attacks and to pay miners for securing the network. If there was no fees bad actors could fill all the blocks with transactions for themselves for free and no one could use, if the they have to pay, they will be spending money and more each time if the blocks fill. It is also to pay miners, if there were no fees miners could just mine empty blocks, with fees they earn more money by putting transactions in blocks.