What is Gas?
Gas is the unit of measure that calculates the transaction money you have to pay when you perform each transaction. Since computing resources are required for each transaction, each transaction has a fee. In summary, gas refers to the transaction fee required to execute the transaction on Ethereum.
What is Gas Fee?
Imagine that every vehicle needs gasoline to move. We also need to give the measured gas fee to transact on the Ethereum network so that our transaction can be done. Gas fees are measured for each transaction. However, if you do not want your transaction to slow down in case of traffic on the Ethereum network, you can speed up your transaction by increasing the gas fee a little.
How is Gas Fee Calculated?
Although the gas fee calculation seems complicated, it actually consists of a simple logic.
Each block has a base price, which is the reserve price. You can have your transaction done in standard time with a suggested priority fee or you may pay more gas fee to be performed faster transactions.
Why Is Gas Fee Variable?
As the demand for Ethereum is high, gas usage is quite high. In addition, the gas fee for each transaction may vary. However, users add the extra gas fee, which we call tip, to speed up their own transaction. All of these reasons are responsible for the volatility of gas prices.
Questions Answered by the Blog:
- What is Gas?
- What is Gas Fee?
- How is Gas Fee Calculated?
- How Can I Speed Up My Transactions on the Ethereum Network?
- Why Is Gas Fee Variable?