What is Gas?
Gas is the computational cost required to conduct transactions or execute smart contracts on blockchain networks such as Ethereum. It is a fundamental concept that ensures the network functions smoothly by preventing excessive resource usage. Gas fees compensate miners or validators for their computational work in processing and validating transactions.
The cost of gas is typically measured in Gwei, a smaller denomination of the cryptocurrency Ether (ETH). The total fee for a transaction is determined by two factors: the gas limit (the maximum amount of gas units the user is willing to spend) and the gas price (the cost per unit of gas). When network congestion is high, gas prices can rise, making transactions more expensive.
In practical terms, gas limits help prevent users from overloading the network, as more complex smart contracts or transactions require higher gas fees. For example, sending a simple transfer of ETH costs less gas compared to executing a smart contract with multiple operations.
Gas is essential in keeping decentralized networks efficient and secure, as it incentivizes participants to use computational resources judiciously.
