What are the network transaction fees related to ethereum?

Like Bitcoin, Ethereum has fees for every transaction.

Unlike Bitcoin, Ethereum smart contracts require additional fees for every call to the smart contract. The BitGo multi-signature smart contract in Ethereum incurs smart contract fees in three cases:   (Gas Used * Gas Price * USD/ETH)

  • Wallet creation: 179066 * 28 Gwei * 300 ~ $1.50

  • Receive address creation: 244829 * 28 Gwei * 300 ~ $2.05

  • Sending transactions: Depends on the address you are sending to.

Please note that these fees are calculated based on the default Gas Price used by BitGo which aims to get confirmations within 2 minutes. API users have the ability to adjust the Gas Price, and bring down costs. For example, receive address creation costs can brought down to lower than $0.30 by lowering Gas Price to 4 gwei. The Solidity code for the BitGo smart contract can be found here.

How long does it take to create a wallet or a receive address?

Wallet creation and receive address creation only take effect after contracts are confirmed on the blockchain. This usually  takes 1 to 2 minutes, but can take up to 3 or 4 minutes during periods of high transaction volume. You must wait for the creation transactions to confirm before depositing Ether into the wallet.

Who pays for the transaction fees?

For each wallet, there is a fee address associated with it. This fee address is used to pay for network fees for sending a transaction as well as create receive addresses. You must ensure that your fee address has a minimum balance of at least 0.01 ETH. In the web UI, the fee address can be found in the transactions page. If you are an API user, you can find the fee address inside the “coinSpecific” Object when you fetch the wallet.