Gas Fees Explained

What are gas fees?

To make a comparison, if the Ethereum blockchain was a car engine, GAS would be its fuel. The blockchain requires GAS to function & operate 24/7. GAS is required for everything that’s going on on the blockchain.

In order for an action to be fulfilled, GAS will first calculate the amount of processing power that is needed for the given action to be executed. Every action requires a different amount of gas, some more than others. Creating a smart contract will require more gas rather than making a small purchase on the blockchain. 

Miners are encouraged to pick the transaction with the highest gas price first. This is because the amount of work a miner needs to do will always remain the same however depending on the amount of gas that has been paid they can earn themselves a better price. Gas price equals transaction speed, so in order to have your transaction fulfilled before others you will need to ‘outbid’ the current gas price. Reasons to pay more gas for a transaction could be due to the urgency of the transaction

What are gas fees

How to create NFTs?

Share

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram

More Guides

Technical Analysis Explained

What is Technical Analysis? The crypto market knows two primary market analyses, fundamental and technical.  Technical analysis refers to the process of analysing and predicting price

DEX aggregator

DEX aggregators are financial protocols that enable cryptocurrency traders to access a wide range of trading pools via a single platform. On trading platforms you can select the desired trading