On LocalCoinSwap non-custodial trading and wallets across multiple blockchains are supported. As a result, to perform transactions on different blockchains you'll typically be required to have the appropriate fee tokens in the same wallet at the time of the transaction.
What are Fee Tokens?
Fee tokens are the native cryptocurrencies of a particular blockchain platform. They are essential for conducting transactions, deploying, or interacting with smart contracts on their respective networks, or performing transactions on LocalCoinSwap. Think of them as the "fuel" for operations on that blockchain.
Why are Fee Tokens Required?
Incentivization: They incentivize miners or validators to confirm and secure transactions. Without this incentive, there might be little motivation for entities to maintain the security and validity of the network.
Network Health: Fee tokens deter spam. If there were no costs associated with transactions, malicious actors could flood the network with numerous transactions, leading to network congestion or even potential shutdown.
Resource Allocation: Blockchains have limited resources. Fees ensure that those who use the network most (or require its resources urgently) compensate accordingly.
Which Fee Token for Which Blockchain?
Ethereum: The fee token is Ethereum (ETH). Every time you make a transaction or interact with a contract on the Ethereum network, you'll pay a fee in ETH. When transferring ERC20 tokens you'll need some Ethereum.
Tron: Here, the fee token is TRON (TRX). TRX is used to compensate for computational activities and operations on the Tron network. When transferring TRC20 tokens you'll typically need some TRX.
BNB Smart Chain (BSC): BSC uses BNB Coin (BNB) as its fee token. BNB is essential for transactions and contract interactions on BSC. When transferring BEP20 tokens you'll require some BNB.
Celo: When using the Celo blockchain some token transactions can be paid for "in kind" by paying for the transaction with the same tokens you are using. However, Celo (CELO) is typically used as the fee token for this blockchain and when transferring tokens like cUSD.