Understanding Gas Limit
A gas limit refers to the maximum cost that an Ethereum user is willing to pay for executing a transaction on the network.
The limit is determined based on the desired activity’s complexity or transaction speed. Ethereum, being a vast ecosystem, experiences high transaction volumes.
Consequently, miners on the network tend to prioritize transactions with higher gas limits.
Gas Limits in Blockchain Transactions
If a user sets a higher gas limit for a transaction and the entire amount is not utilized during processing, the excess gas is refunded to the user’s account.
It’s important to note that the complexity of a transaction is influenced by the services being used.
Gas Limits in Smart Contracts
One of the advantages of having a gas limit is that it helps prevent incorrect codes, particularly in smart contracts, from charging more than necessary for a transaction.
In a real-world analogy, gas can be compared to car fuel, while the gas limit is equivalent to the car’s fuel tank capacity.
Gas Limit Estimation in Ethereum Transactions
In this analogy, a driver needs to estimate the correct amount of fuel required for a specific trip to avoid any inconveniences, such as an unfinished journey.
Similarly, Ethereum users need to provide an adequate gas limit to prevent their transactions from being aborted and recorded as “Failed” on the blockchain.
It’s important to note that once a transaction fails, the gas that has already been consumed cannot be refunded. Platforms like the ETH Gas Station provide guidance on preferred gas limits, and Ethereum wallets such as MetaMask offer options to set the gas limit.