What is a Gas Fee? Why should transactions on the blockchain require computational power to be executed gas used to perform transactions?
Hope this content will bring a lot for you. Let’s get directly into the conversation. Here gas is the unit of measurement used to describe the computational power needed to perform such transactions. Now not all transactions in the blockchain are equal different operations or interactions with blockchain require different amounts of gas.
What is a Gas Fee? Example
Therefore to explain What is a Gas Fee let’s use an analogy of trucks. Three trucks carrying different amounts of weight will require different amounts of gas to complete the same trip. An empty truck requires 10 gallons of gas to perform a 100-mile trip. The same truck carrying weight its mid-capacity will now require 15 gallons of gas to perform a 100-mile trip. The same truck at its max capacity will require 20 gallons of gas to perform a 100-mile trip. So, in this case, the heavier the truck the more gas is required to travel the same distance.
Now switching back to blockchain technology the cheapest transaction that can be executed on Ethereum blockchain is the transfer Ethereum. Think of this as the low-weight truck sending one Ethereum from one wallet to another. This requires 21 000 units of gas for the transaction to be executed sending one Ethereum worth of dye. Another token will carve 65 000 units of gas as the dye is not a native token. The blockchain but a custom token under ERC 20 standard.
Think of this as more of the medium-sized truck. The transfer of a non-fungible token like a domain worth one Ethereum. These costs 86 000 units of gas or more. This depends on all the information configuration the domain is being transferred with.
Ethereum Gas Fee – Example
In this example the heavier the transaction the more gas required. For example, pay the gas in dollars and the price per gallon depends on the demand and supply of gas. But now purchasing it in the Ethereum blockchain gas is not purchasing in dollars. But purchased in Gwei and depending on the demand and supply now.
Ethereum & Gwei
The performing of transactions and the price in Gwei for gas are required next to your transaction in the blockchain. Since the only unit value valid in the blockchain is Ethereum. First, pay those transactions in Ethereum instead of dollars or any other currency. Therefore, when executing transactions on the Ethereum blockchain. To calculate the amount in dollars. The need to spend will depend on the amount of gas needed to execute the transaction.
The price of Gwei and the price of Ethereum and dollars at the moment performing the transaction. To Find current estimates of gas prices in Gwei on the websites. Importantly, Etherscan or gas now but bear in mind the number of dollars displayed on those websites is adjusted. The calculation for the simplest transaction that can be executed in the blockchain is the transfer of Ethereum. The more complex transfers may cost more. We hope you find this information useful and that you’ve learned something new today to make your unstoppable journey unstoppable. However, if you like anything new and want us to explain it in our upcoming articles. Please let us know in the comments. In the end, thank you for being with us.