Ethereum Gas Fees Explained in 60 Seconds
You may be confused when you look at a transaction to transfer some Ether in your wallet and see that there is a fee charged to execute the action. This fee is called “gas.”
So what is gas and what does it do? Gas is a type of crypto-fuel that you need to pay to execute a transaction on the Ethereum blockchain.
If you want to transfer money, trade, or execute any other operation on Ethereum, you need to pay the network with a fraction of Ether, or in other words, gas.
Gas prices are denoted in gwei, which itself is a denomination of ETH; each gwei is equal to 0.000000001 ETH. For example, instead of saying that your gas costs 0.000000001 Ether, you can say your gas costs 1 gwei. The word “gwei” itself means “giga-wei,” and it is equal to 1,000,000,000 wei. Wei itself is the smallest unit of ETH.
Gas is not just some measure that has no meaning, nor does it require you to follow it blindly. It’s essentially a mechanism for prioritizing transactions on the network.
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