What Is GAS? Ethereum HIGH Transaction Fees Explained

So what exactly is gas? Why are transaction fees so high at the moment? And what are some of the ways to make the transaction cost lower? You’ll find answers to these questions in this video.

Gas is a unit used for measuring the amount of computational effort required to perform specific actions on the Ethereum blockchain.

The name itself hasn’t been chosen by accident. Similarly to gasoline fueling a car and allowing it to drive, gas on the Ethereum network fuels transactions and allows them to perform different operations.

Every operation on the Ethereum blockchain, or to be precise on the Ethereum Virtual Machine (EVM), has an associated gas cost. For example: adding 2 numbers costs 3 gas; getting the balance of an account – 400 gas; sending a transaction – 21,000 gas.

Smart contracts usually consist of multiple operations that together can cost even hundreds of thousands of gas.

What is interesting is that the gas cost by itself doesn’t tell us how much we have to pay for a particular transaction. To calculate the transaction fee we have to multiply the gas cost by gas price.

The gas price is measured in gwei – a smaller unit than ether where 1 gwei equals 0.000000001 ETH. We can think about it as a major and a minor unit similarly to dollars and cents.

📘 DeFi Guide ► https://finematics.com/guide-to-decentralized-finance/
📖 Post ► https://finematics.com/what-is-gas-ethereum-high-transaction-fees-explained/
🐦 Follow Finematics on Twitter ► https://twitter.com/finematics
💛 Support Finematics on Patreon and join our Discord community ► https://www.patreon.com/finematics

🔒 Ledger ► https://shop.ledger.com/pages/ledger-nano-x?r=b0b220a75e03 (affiliate)
📱 Argent Wallet ► https://argent.link/finematics (affiliate)
🌐 Get your .crypto Unstoppable Domain ► https://unstoppabledomains.com/r/8160a196fa7e4ac

(Visited 31 times, 1 visits today)

You might be interested in

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *

eos
EOS (EOS) 4,08 1,94%
aave
Aave (AAVE) 276,65 2,83%
the-graph
The Graph (GRT) 0,758556 2,96%
kusama
Kusama (KSM) 327,30 0,20%
waves
Waves (WAVES) 24,33 1,31%
dash
Dash (DASH) 170,72 1,65%
bitcoin
Bitcoin (BTC) 52.504,64 0,09%
ethereum
Ethereum (ETH) 3.557,64 2,96%
cardano
Cardano (ADA) 1,85 0,37%
tether
Tether (USDT) 0,858775 0,00%
xrp
XRP (XRP) 0,936065 0,22%
solana
Solana (SOL) 169,82 0,18%
polkadot
Polkadot (DOT) 37,82 0,41%
usd-coin
USD Coin (USDC) 0,858775 0,27%
dogecoin
Dogecoin (DOGE) 0,214799 2,15%
uniswap
Uniswap (UNI) 23,28 5,31%
terra-luna
Terra (LUNA) 37,12 0,31%
litecoin
Litecoin (LTC) 168,26 1,35%
chainlink
Chainlink (LINK) 26,43 7,44%
bitcoin-cash
Bitcoin Cash (BCH) 540,66 0,27%
algorand
Algorand (ALGO) 1,62 0,05%
matic-network
Polygon (MATIC) 1,38 6,87%
stellar
Stellar (XLM) 0,326236 1,59%
cosmos
Cosmos (ATOM) 30,76 4,57%
filecoin
Filecoin (FIL) 55,50 2,48%
tron
TRON (TRX) 0,086206 0,32%
ethereum-classic
Ethereum Classic (ETC) 47,71 1,54%
dai
Dai (DAI) 0,858775 0,32%
tezos
Tezos (XTZ) 5,78 0,16%
monero
Monero (XMR) 230,29 0,41%