Ethereum gas is what fuel is to cars. As the car needs fuel to operate, so does Ethereum need the gas to complete transactions.
Gas is the unit of measure of the computational effort needed to execute specific transactions in the Ethereum network. The only way on how to get Ethereum gas is to pay through the native token, Ether (ETH). The gas prices are recorded in Gwei, which is a denomination of ETH. Every Gwei is equal to 0.000000001 ETH (10-9 ETH).
What is a Gas Limit?
What is a gas limit in Ethereum? Gas limit is the maximum amount of gas you wish to spend on a transaction. The amount you are willing to spend in most cases varies depending on the nature of the transactions. For example, a complicated transaction that involves smart contracts has several nodes to complete. These costs require a higher gas limit compared to any other simple transaction.
A typical ETH transfer has a gas limit of 21,000 units. You don’t have to understand how to calculate the gas limit Ethereum to set the gas limit. Instead, you can state any amount you are willing to spend. The system will use the needed gas and return any unused portion to your account.
For example, if you place 30,000 units as your gas limit for a simple ETH transaction, the EVM uses the 21,000 units and returns the 9,000units. However, if you specify 18,000 units for the gas limit, the EVM will use up the units as it attempts to complete the transaction unsuccessfully. Given the gas has been used up, you have to place another 21,000 units when retrying the transaction.
Why can Gas Fees Get so High?
To understand the gas fees, you first have to know about the gas price. So what is Ethereum’s gas price? It is the amount of ETH you pay for every unit of gas. It is measured in gwei.
The gas price can at times get so high due to the popularity of the Ethereum network. The network operates blockchains that can only support a maximum number of transactions per block. The various transactions on the block have gas limits. Smart contracts have since become more complex hence needing more space in the block.
Given the competition for the block space, you might have to pay more fees to upstage the competition. Miners tend to prefer transactions with higher gas limits as they gain more transaction fees.
The Future of Gas Fees
The increasing gas fees with the increasing Ethereum demand is a concern for most users. As Ethereum becomes applicable in various industries, it can become unaffordable for most users. As such, the platform is introducing ETH2, also known as Serenity.
The current Ethereum system relies on a proof-of-work mining protocol that requires more energy to operate. However, the new system utilizes a proof-of-stake protocol that is less energy-intensive. With less energy needed, the gas fees will reduce significantly. Already, various cryptocurrencies like TRON and Binance Smart Chain have deployed the same system with great effect.
