EIP-1559
EIP-1559 changed Ethereum's transaction-fee market by introducing a variable base fee, fee caps, and priority fees.
✦ Key Insight
It is essential for understanding modern Ethereum gas settings and why wallets show maximum fee and priority fee fields.
✕ Common Misconceptions
Setting a very high max fee does not mean the entire maximum is always spent.
Detailed Explanation
In Practice
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Gas
Gas is a unit or mechanism used on some smart-contract networks to measure and price the computational work required for transactions.
Priority Fee
A priority fee is an additional fee offered to improve a transaction's inclusion priority under a network's fee rules.
Ethereum
A blockchain designed to run programs, called smart contracts, with ETH as the currency that pays for the computation.
Gas Fee
A gas fee is the network fee paid for computation and transaction execution on blockchains that use a gas-based fee model.
Base Fee
The base fee is the protocol-determined minimum fee per unit of gas required for inclusion in an Ethereum block under EIP-1559.