For those of you who make ETH your favorite crypto-asset, then you must understand the terms Gas Fee, Gas limit, and Gas. This time, we will discuss this term which is an important element in conducting ETH transactions. Come on, know the meaning of elements in this crypto asset!
But before discussing in more detail about gas, you must first know the facts about Ethereum in “10 Facts about Ethereum 2.0” that you need to know.
Well, if you have read, now is the time to discuss the elements in conducting ETH transactions, namely Gas.
Definition of Gas
Gas is a transaction measurement that represents fees on the Ethereum network.
This is the same as using kilowatts that you usually do to measure the electricity you use at home. As you know, the electricity you calculate is not measured in rupiah. However, it uses Kilowatts or kWh per hour, just like the gas system in Ethereum
Then, Why Should There be a Gas Fee in Ethereum?
Because this process fee can make it easy to calculate resources when you make a transaction, not only that, but this gas fee to distinguish computing costs and crypto assets. The price in Ethereum gas is based on the amount of ETH you are ready to pay in every smallest unit of gas, usually measured by the term ‘Gwei’.
For those who are still confused about Gwei, you can compare this to when you refuel your vehicle. So this Gwei is equal to the cost of every liter of fuel you pay to fill the vehicle.1 This Gwei is equal to 0.000000001 ETH.
Gas in Ethereum has many functions, you know, one of them is to issue decentralized applications or DApps and for transactions to send ETH crypto assets to your friends for a fee using Ether or ETH.
In addition, this gas fee also serves to secure the network. When you send ETH, you will determine the gas fee using Gwei currency and gas limit.
Exploring Gas Limit on Ethereum
This gas limit in Ethereum, refers to the maximum amount of gas you want to make a transaction. The more complex the request you want to make, the more gas you will have to pay.
So, the gas limit can determine how many units of gas you want to pay. You can make this gas limit like the planning you budget for mining that processes your transactions.
In this gas market, it will determine whether your transaction is approved or not, and will determine when the transaction will be confirmed.
This ETH standard transfer requires a gas fee with a minimum of 21,000 units of gas. This is because, the ICO blockchain has a more complex code and requires a lot of calculations.
Purpose of Gas Fee
Providing this gas limit can help manage the development of the Ethereum blockchain while also helping with the operating costs of miners.
So, when there are lots of transactions, you will often find conversations about mining which signal higher gas limits. This is because increasing the gas limit will allow the Ethereum network to process more transactions per second.
What you need to know, the duties of the Gas limit and Gas fee are different. The gas fee is for the price that the buyer has to pay while the Gas limit is the maximum limit that consumers can pay but still their job is to become a single entity in the Ethereum blockchain transaction.