In the world of cryptocurrency , gas is a way to measure how much computing power is needed to perform a transaction or activate a smart contract. It's like measuring how much fuel a car needs to run.
Take for example, for every transaction you want to make on Ethereum, you need to provide a little "gas" paid with Ether, Ethereum's digital asset. This gas helps keep the network from getting too busy with unnecessary transactions.
When you want to make a transaction, you will determine the maximum limit of gas you want to use and how much you are willing to pay for each unit of gas. These fees can vary; at times when many people are using the network, gas fees can be higher as more people compete to get their transactions processed quickly.
This gas concept is important because it helps keep the Ethereum network fair and efficient. By paying for gas, users help prevent network congestion and ensure that their transactions are processed. Miners or validators who confirm transactions get this gas as a fee, so they have a reason to keep the network running smoothly.
Read More Vocabulary
Governance Tokens |
Hash Rate |
Hedge Funds | Relative Strength Index (RSI) |
Mining Rewards | Dollar Cost Averaging (DCA) |
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