A Brief History Of Gas Prices on Ethereum
One of the most common questions we get at Gitcoin is about gas. This article aims to answer some of the questions and also talk about practical and theoretical aspects of the Ethereum gas market.
What is Gas?
Gas is a unit denoting price of computation on the Ethereum, paid in Ether by users to miners in order to utilize the computational power of the network. A gas limit is the maximum amount of computational units that is allowed for your particular transaction. The total cost of a transaction (the transaction fee) is the gas price (in Ether) multiplied by the gas limit. This is similar to paying for gas at the gas station — $3.50 (gas price) per gallon (unit). 10 units comes out to a transaction price of $35.
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