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FAQ 33 – What are gas fees?
Definition of gas fees
Gas fees, paid in Ether (ETH), are a unit of measurement that expresses the computing power required to properly execute a transaction on the Ethereum blockchain.
Gas can be associated with the gasoline that a car needs to move. Gas fuels the transactions and allows them to perform various operations.
Gas prices are expressed in GWei (a small sub-unit of ETH): 1 ETH = 1,000,000,000 GWeis.
Before executing each operation in a transaction, the Ethereum blockchain checks if there is enough gas left, otherwise the transaction is canceled.
What is the gas fees limit?
The gas limit is a predetermined number of transactions that can be included in a block.
Miners will therefore prefer to validate transactions with the highest gas costs, they are more profitable.
If a user wants his transaction to be carried out by the miners, he will have to outbid them, which increases the gas costs.
The operation of the gas fees
The miners determine the gas price according to the supply and demand.
Gas and expensises – Photo credit: Ethereum.org