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cryptographic hash function

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Definition: transaction fee

An amount paid to an institution for handling a financial transfer. For example, the merchant pays a transaction fee to the credit card company for accepting payment from a customer. In a blockchain, a transaction fee is paid to the miner that adds the block. In the Bitcoin world, the fee is some amount of Bitcoin. With Ethereum, it is an amount of Ether, which is calculated by the gas rate. See gas and transaction.