Understanding Gas Fees and Transaction Costs on Ethereum
When we come to the world of the crypto space, one of the major giant apart from bitcoin is Ethereum and in fact has been widely adopted all around the platforms. One major strength I have come to diagnose that allow the massive adoption of the Ethereum is the fact that it support decentralised applications.
For me, I am seeing Ethereum to be a major landmark for innovation in the future but also, if you are a user conversant with the Ethereum network, you will understand that there are certain costs that actually comes with it. In fact I have come to discover that these costs which are called gas fees can be a major hindrance for some transactions to be carried out most especially when the network congestion is really high as it can lead to massive high fees.
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Before actually explaining, what is really gas fees? They are know to be the transaction cost required for carrying out any operations on the Ethereum Blockchain. Every time you make use of the Ethereum Blockchain as that can involve either you are making a transaction or making a smart contract or using dApps, you will certainly pay a free for it and this particular fee is always used to compensate the network validators as it is claimed.
One of the uniqueness of Ethereum Blockchain is of course the gas fee and someone might want to ask me why do gas fees really exist. What is the usefulness? Trust me, gas fees are needed as it helps to settle a lot of functions within the Ethereum ecosystem and one of the most essential functions is that it fights against what I call network abuse.
I know many of us did not really like the concept of the gas fee but the truth is without the gas fee, there will be overwhelming numbers of transactions that will be malicious and at the end of the day, the ecosystem will not be controlled. But when a small fee is attached to every transaction, it makes sure that every transaction that is carried out is valid and not of spam transactions.
I have actually used to wonder, how is the gas fee always determined. But after my research and calculations, I came to discover that 1 ETG means 1 Billion Gwei and most of the time, the gas price flunctuates based on the network demand as the gas fee have evey tendency to go up when the network is really congested.
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Nice analysis about Gas fees and transactions fee. There are some sites that charge huge fees while doing transactions which is really sad.
Thank you so much
Great explanation from you on the Ethereum gas fee and transaction cost, your article has been quiet insightful
It is a great article of Understanding Gas Fees and Transaction Costs on Ethereum.
This is very important to learn about gas fees on the etherium network because most of the time it is very high and a proper understanding can help to plan transactions better.