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Bitcoin fees pay for scarce block space, Ethereum fees pay for transaction execution, and XRP Ledger transaction costs are specified in XRP and destroyed. The unit and calculation differ on each network, so compare the estimate shown by your wallet for the specific transaction—not a generic fee figure.
How the three fee systems differ
| Network | Main fee driver | Common unit | What happens to the fee | Check before signing |
|---|---|---|---|---|
| Bitcoin | Signed transaction size and competition for block space | Satoshis per virtual byte (sat/vB) | The miner that includes the transaction receives the fee | Estimated size, fee rate, and confirmation target |
| Ethereum | Gas used multiplied by the per-unit price | Gas units; prices commonly shown in gwei | The base fee is burned; the priority fee goes to the validator | Operation, estimated gas, base fee, tip, and maximum fee |
| XRP Ledger | The cost specified in the transaction, which can scale with network load and transaction type | Drops of XRP | The specified XRP amount is destroyed; no party receives it | Current required cost and the transaction’s signed Fee field |
These units are not interchangeable. A sat/vB rate is not a total Bitcoin fee, gas is not an Ethereum price, and drops are fractions of XRP. Network conditions and transaction details also change what a user pays.
How Bitcoin transaction fees work
A Bitcoin transaction spends one or more unspent transaction outputs (UTXOs), and its fee is the difference between the total value of its inputs and the total value of its outputs. The fee is therefore not primarily a percentage of the amount being sent. Its size in bytes, together with demand for limited block space, is what matters.
Wallets commonly express the fee rate in satoshis per virtual byte (sat/vB). Miners select transactions for blocks, so a transaction offering a higher rate may be more competitive when space is scarce. A lower-rate transaction can wait while higher-fee transactions are included; an estimate aimed at a particular confirmation target is a market estimate, not a promise of an exact arrival time.
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Bitcoin Core’s send RPC documentation describes fee-rate controls and confirmation targets. The Bitcoin Developer Guide’s transaction documentation explains transaction fees, while its block-chain guide describes block inclusion. Check the wallet’s fee estimate immediately before signing.
How Ethereum gas fees work
Ethereum uses gas to measure the execution work a transaction requires. The amount of gas used reflects the operation: a smart-contract interaction can require more gas than a basic ETH transfer. The fee depends both on gas used and on the price per gas unit.
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Under Ethereum’s fee model, the base fee is set by the protocol and burned. A sender may also include a priority fee, or tip, which goes to the validator. A maximum fee per gas can be specified as a cap; it is not necessarily the amount ultimately paid. The actual execution fee is based on the gas used and the applicable base and priority fees, within that cap.
Illustrative calculation—not a live quote
Ethereum.org uses a 21,000-gas ETH transfer in a documentation example. With an assumed 10 gwei base fee and 2 gwei priority fee, the calculation is 21,000 × (10 + 2) = 252,000 gwei, or 0.000252 ETH. These assumed prices illustrate the calculation; they are not current fee recommendations.
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For the definitions and fee mechanics, see Ethereum.org’s gas documentation and the EIP-1559 specification.
How XRP Ledger transaction costs work
An XRP Ledger transaction includes a cost specified in XRP drops in its signed Fee field. The amount is destroyed rather than paid to a validator or another recipient. The XRPL documentation reports a standard minimum of 10 drops, but says the required cost can rise with network load and can vary by transaction type. Treat that figure as documentation guidance, not a permanent fee promise.
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Because the amount specified in the signed field is the amount destroyed, review the current recommended cost and the transaction’s fee before signing. The XRP Ledger transaction-cost documentation describes the cost and load-related changes.
What to check before confirming a transaction
- Bitcoin: Check the total fee, the sat/vB rate, the estimated transaction size, and any confirmation target. A faster target can require a more competitive rate, but it does not guarantee a precise confirmation time.
- Ethereum: Check what operation is being performed, the estimated gas, the current base fee, the priority fee, and the maximum-fee cap. Do not confuse gas units with gwei, which expresses a gas price.
- XRP Ledger: Check the current network-load cost, the transaction type, and the XRP amount in the signed
Feefield. - All networks: Use the estimate presented immediately before signing. A network fee is separate from any exchange withdrawal fee, wallet-provider charge, or fiat-conversion cost.
Why a single fee comparison can mislead
A Bitcoin fee rate, an Ethereum gas price, and an XRP Ledger cost field describe different things. Even a total fee comparison needs a defined transaction, time, and network condition: Bitcoin depends on transaction size and block-space demand, Ethereum on execution and gas pricing, and XRPL on its specified cost and load. A fixed-dollar transfer amount alone does not determine the fee on all three networks.
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For that reason, a general claim that one network is always cheapest—or a static “typical fee” without a dated source and specified transaction scenario—does not tell you what your transaction will cost. Compare the wallet’s current estimate for the actual action you intend to sign.
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