Gas in cryptocurrency

Gas is very relevant blockchains like Ethereum because it use small contracts that are self executing because the agreements are directly written in code. If there is any user who want to interact with the small contract, then that user would need amount of gas for the coverage of computational resources that he would use to process that particular transaction.

Purpose of gas in cryptocurrency

Abuse and spam at any blockchain network can be prevented to higher extent by gas in cryptocurrencies. This is because whenever a user have to make any transaction then he have to pay also for the execution of transaction and for the computational resources which he consume or uses that's why it ensure that blockchain is more efficient and secure now.

If I talk about amount of gas that is required to a particular person varies from transaction to transaction and it depends upon various factors like the complexity of transaction, amount of data that is going to processed and congestion in network. Any operation or any work in which there is involvement of small contract then amount of gas would be free defining for it so for understanding it in better way let's suppose that if you want to read data from Blockchain then it will require less computational effort so in return amount of gas required would be low and if at blockchain you want to create and execute a complex computation then amount of gas that is required to you would be high.

Most important thing that you should take in consideration is that if gas limit that is set for a transaction is very low then it would not let the transaction to happen and transaction may fail to execute. Transactions become reverted in such cases but still the user have to pay fees in these cases. This is used for the prevention of situations in which a transaction is consuming higher amount of resources.

For the measurement or calculation of total cost of a transactions there are two factors that we have to consider.

- Price of gas
- Amount of gas

When we talk about gas price then it is the cost that will consider at a unit of gas and it is denoted in small unit of a particular cryptocurrency like Wei for Ethereum. About amount of gas I have already talked that it depends upon the complexity of the transaction and it can also depend upon the involvement of operations.

When you want to calculate total cost of a transaction then you have to multiply the price of gas by the amount of gas required and then in result you would receive the total amount of cost that you have to pay of a particular transaction.

Suppose;

Gas price = 10 Wei

Amount of gas = 100,000 gas

Total transaction cost = Gas price × Amount of gas

Total transaction cost = 10×100,000

Total transaction cost = 1,000,000