Last Updated on December 3, 2022
Gas is a unit of measurement for the computing work required to carry out specified activities on the blockchain.
For any transaction on the Ethereum network, a user has to pay a gas fee in Gwei, a denomination of ETH, Ethereum’s native coin.
Gas calculates the costs required to execute each transaction based on the computational complexity, bandwidth, and available space.
Miners utilize gas to determine the lowest price at which they are willing to execute transactions.
The intricacy of the transaction, and the number of users transacting at the time of your transaction are all variables that determine gas fees.
Supply & Demand: the more popular Ethereum’s technology becomes, the more users it attracts, the more costly gas gets.
In 2022, the Ethereum network is transitioning to a Proof-of-Stake protocol and will reduce gas fees, and increase transaction loads.