Ethereum (eth) requires gas fees and blockchain fees when transacting, so we will explain how to check them in this article. When dealing with Ethereum, you need to be careful about gas fees. Please note that this gas fee may be charged as a fee.
What is Ethereum?
Ethereum refers to a platform equipped with smart contracts that can automatically execute contracts and blockchain technology that prevents tampering with contract details. Ethereum is primarily used to develop applications on the platform. Applications developed using smart contracts and blockchain technology are being put to practical use in various genres such as finance, real estate, and games. Ethereum has the following features:
smart contract
A smart contract is a program that automatically performs a predetermined action by the user. Depending on the amount of ETH paid, appropriate services can be provided, so programs can be set up to automatically acquire specific data.
DApps
DApps is an abbreviation for Decentralized Applications. This indicates a system that encrypts and decentralizes transaction data recorded by blockchain technology. In DApps, all past operation logs are also recorded on the blockchain and can be viewed by all users. Code can be inspected by all users, making fraud and tampering extremely difficult.
PoW
The Ethereum mining method uses a method called PoW (Proof of Work). PoW is a mechanism that performs calculation processing when cryptocurrency transactions occur, and rewards are given to the person who processed the fastest. The higher the specs of the computer, the more advantageous it is for mining. Mining refers to a mechanism in which cryptocurrency rewards are paid to those who approve cryptocurrency transaction data.
What is gas?
Gas is a fee charged by Ethereum for users to interact with the network. It is an index that measures how many calculation steps are required for the transaction that the user wants to make. When sending virtual currency using blockchain technology, a fee will be charged to the person who performs the data calculation processing necessary for the transaction. Normally, this is the only fee, but in addition to this fee, Ethereum also requires a fee when executing a smart contract.
Why do you need a gas bill?
Let’s check the following reasons why Ethereum requires gas fees. Although it is set, the price fluctuates on the chart, so depending on the situation, the cost may become cheaper depending on the time. Be careful when prices are rising. Look at the market conditions to save money. It is also affected by transaction congestion.
Reduce network load
Ethereum is the virtual currency with the second highest market capitalization after Bitcoin. As the number of transactions using the Ethereum platform increases, it places a heavy load on the Ethereum network and slows down the speed of remittances. In order to reduce this burden, we control it by imposing a fee called gas fee. However, there is also a background in which the amount fluctuates greatly depending on the day of the week, so it is necessary to check the market price.
Security
Ethereum gas costs are incurred on all transactions. Those who carry out cyberattacks also have to pay for gas. This has the effect of eliminating the reason for cyberattacks as a result. This is not a direct reason, but it indirectly prevents cyberattacks.
gas unit
When using it as knowledge now, we will use the unit of gas as the unit of gas. The list below is for your reference. wei is the smallest unit of ETH. From here, the units will gradually increase. A feature of Ethereum is that it requires gas costs when investing.
| Unit | ETH |
| wei | 0.000000000000000001 |
| kwei | 0.000000000000001 |
| mwei | 0.000000000001 |
| gwei | 0.000000001 |
| szabo | 0.000001 |
| finney | 0.001 |
| ether | 1 |
| kether | 1000 |
| mether | 1000000 |
| gether | 1000000000 |
| tether | 1000000000000 |
Gas bill calculation method
Gas limit indicates the gas limit, and Gwei indicates the unit price of gas. Multiply these two to get your official gas bill. However, the gas fee will be refunded if there is a surplus after deducting the gas fee actually consumed. However, the price of ETH is constantly changing in the market, so the cost may change slightly depending on the timing. Be sure to know the latest price of ETH, which is currently popular. Whether the amount is rising or falling is affected.
Gas limit x Gwei – gas actually used = gas price actually paid
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