When you trade with the virtual currency Ethereum (ETH), you may have heard that there is a fee called gas fee, so I will explain how to check it and save money in this article. If you are thinking about trading virtual currencies from now on, you should definitely keep this in mind. This is absolutely necessary knowledge when trading virtual currencies.
What is gas bill?
Gas refers to the fees required to process transactions on the Ethereum network. This takes time, but it is a fee that is charged regardless of the exchange. The unit is generally written as Gwei, and 1 Gwei is 0.000000001 Ethereum (1 billionth of 1 ETH). In terms of information, there is no such thing as a free transaction, so it goes without saying that fees will basically be incurred. There may be delays depending on the time of the chart and the security situation.
Calculation method
Gas bill = gas unit x (base rate + tip)
A gas unit refers to the maximum amount of gas that can be consumed in a transaction. Different types of interactions with the Ethereum blockchain require different gas costs to complete.
The base fee refers to the minimum gas fee required to be included on the Ethereum blockchain. Regardless of the type of transaction, it is usually driven by demand and is a demand-dependent factor.
A tip is a fee for completing a transaction faster. They are called chips because they provide a financial incentive for Ethereum miners to complete certain transactions faster than others.
why you need gas
The mechanism implemented to prevent infinite loops in Ethereum is called gas. An infinite loop, as the name suggests, is a program that never terminates. Gas was introduced as a way to prevent this infinite loop. Ethereum solved the infinite loop problem by setting a fee called gas and introducing a mechanism that forcibly stops the program if the gas runs out.
gas price
Gas prices fluctuate from time to time. With real-time price fluctuations, users need to know up-to-date information on how much gas will cost before performing a transaction. When the price is rising, the price will be high, and when the price is falling, the price will be low. You can check this by looking at websites such as Ethereum Gas Tracker. Although it is recommended because it is a popular coin, the network may be congested, which can cause delays, so response times may be delayed.
Depends on Ethereum
Ultimately, the cost of gas will depend on the price of the Ethereum stock. On average, gas prices are getting higher, which means Ethereum is getting more expensive as well. Let’s predict and check if it will rise. Ethereum is not expected to crash at the moment, so if it drops even a little, it would be a great opportunity. This is your chance to invest and make money.
What is Ethereum?
Ethereum was invented by Vitalik Buterin in 2013. Ethereum refers to a platform equipped with blockchain technology that prevents tampering with contract details. Ethereum, which is being developed as open source, has high expectations from various industries. Ethereum is currently the second largest cryptocurrency in terms of market capitalization and is often referred to as “ETH”.
how to use ethereum
Ethereum is primarily used to develop applications on the platform. Therefore, DApps, which are applications developed by coordinating and making full use of smart contracts and blockchain technology, tend to be used in various fields such as finance, real estate, and games, and are in demand. Most exchange operating companies, such as Coincheck, actually handle Ethereum in their services.
DApps
DApps (Decentralized Applications) mean decentralized applications. Normal apps stop working due to bugs or maintenance when updating, but DApps can always keep running. In addition, it is different from ordinary apps because it has the function of encrypting transaction data and managing it in a distributed manner.
Difference from Bitcoin
There are major differences between Bitcoin and Ethereum in terms of usage, consensus algorithm, and maximum number of coins issued. While Bitcoin is mainly used for payments and remittances, Ethereum is faster and is often selected and used as a platform. The service is now even better.
| BTC | ETH | |
| Main use | Settlement/remittance | platform |
| consensus algorithm | PoW | PoS |
| Issue upper limit | 2,100万BTC | – |
| market capitalization | About 80.9 trillion yen | About 34.5 trillion yen |
A consensus algorithm is a rule for confirming the integrity of cryptocurrency transactions on the blockchain. PoW is a method in which the first miner to solve a problem that requires a large amount of computation acquires the right to approve a transaction. PoW, which consumes a huge amount of electricity, places a heavy burden on the environment, so ETH was changed to PoS. PoS means deciding who approves a transaction according to the amount of currency held.
There is no upper limit on the number of issued coins for Ethereum. However, Ethereum ensures the scarcity of the currency and the stability of the price by limiting the supply by burning.
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