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Gas Transaction Fees on Ethereum Platform – Everything...
Instruction

Gas Transaction Fees on Ethereum Platform – Everything You Need To Know

Gas is a fee, given to measure the computational work of transactions or execute smart contracts on the Ethereum blockchain platform.

Gas transaction fee

Gas is a fee, given to measure the computational work of transactions or the execution of smart contracts on the Ethereum blockchain platform. The unit of gas used is Gwei, Gas is used to allocate resources of the Ethereum Virtual Machine (EVM).

Gas’s specific price is determined by the network’s miners, who may refuse to process transactions if the value of Gas does not satisfy the threshold they want.

Contents of Gas transaction fees

The concept of Gas is introduced to assign a specific value. Therefore, Gas transaction fees are purely payments made by the user in exchange for the computational energy needed to process and validate transactions on the Ethereum blockchain.

“Gas limit” is the maximum amount of Gas transaction fee ( energy) that a user is willing to pay for a particular transaction. The higher Gas limit means you will do more work in Ether trading or smart contract.

For a simple example of gas charges and gas limits: if you want to run a car for X kilometers then you need Y liters of fuel, or if you want to transfer X amount of money from your bank account to your card account. Your credit will require the processing cost of Y Dong. In both cases, X indicates the value of the utility, while Y is the cost of making the trip or financial transaction.

Likewise, a contract or transaction on Ethereum can be worth 50 Ether (X), and the Gas transaction fee to process this transaction at that particular time could be 1 / 100,000 Ether ( Y).

Ethereum miners (who perform all the important tasks to verify and process transactions) are rewarded with this special fee for their computational work. If the gas fee limit is too low, miners can choose to skip the transaction and look for another.

 

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