Understanding Gas on the Ethereum Network
Gas refers to the fee paid on the Ethereum network in exchange for utilizing its computational power.
It is required for activities such as launching decentralized applications (DApps) and performing transactions like sending ETH between users.
The fee is paid using Ether (ETH), the native currency of the Ethereum platform.
Gas is measured in small units called gwei, with one gwei equivalent to 0.000000001 ETH.
Gas Fees in Ethereum
The amount of ETH paid for a transaction depends on the computational resources needed to complete the transaction on the Ethereum Virtual Machine (EVM) and the level of congestion on the blockchain.
The introduction of gas fees on the blockchain serves the purpose of quantifying the resources utilized during transaction execution and distinguishing them from the digital currency itself.
Enhancing Security and Efficiency
Furthermore, imposing fees on each transaction acts as a deterrent against spamming and enhances network security by discouraging malicious actors.
Ethereum users can estimate their gas costs using platforms like ETH Gas Station.
However, it’s important to note that lower gas prices may result in longer processing times, as miners prioritize transactions with higher fees, which offer greater rewards.
It’s noteworthy that gas on the Ethereum network should not be confused with GAS on the NEO blockchain.
In the context of NEO, GAS is treated as a separate currency, whereas on Ethereum, it represents the cost associated with transaction processing.