You might have noticed that there is a fee associated with every Bitcoin transaction. The mining fee is the name of this charge.
Your transaction will be executed on the Bitcoin network thanks to the mining fee. The Bitcoin network levies a fee to use its blockchain, much like VISA levies a fee for utilising their network.
But there is a significant distinction. Under conventional payment systems like VISA, the party receiving the money is responsible for paying the fee, which is then passed along to you in the form of increased costs. The charge in Bitcoin is covered by the sender. The sender can choose how much of a fee they are ready to pay thanks to this design decision. You can select a low cost for a slower processing speed or a larger fee for a faster processing speed.
In order to secure the network and choose which transactions to execute first, miners are essential. Depending on the fees involved, they rank transactions. Higher fee transactions are normally processed first, whereas lesser fee transactions may take longer to process until a miner decides to include them in a block.
This system incentivizes miners to process transactions by compensating them for their computational power and electricity usage. Despite the fee associated with each transaction, using the Bitcoin network is often more cost-effective compared to traditional money transfer services like Western Union.