Gas
Gas is a measure of the computational work required to perform operations on certain blockchain networks, especially Ethereum and other EVM-compatible networks. Users pay fees based on the gas required and the network's fee conditions.
✦ Key Insight
Gas affects the cost of using blockchain applications. A simple asset transfer may require relatively little gas, while a complex DeFi transaction may consume significantly more. Understanding gas helps traders compare transaction costs and avoid confusing application fees with blockchain fees.
✕ Common Misconceptions
Confusing gas with the gas fee
Assuming higher gas consumption always means congestion
Forgetting to keep ETH for fees
Assuming all blockchains use the term gas
Ignoring smart-contract complexity
Treating failed transactions as always free
Detailed Explanation
How It Works
Every blockchain operation has a computational cost.
A transaction specifies how much gas it may consume.
On Ethereum, the total network fee depends on the gas used and the applicable fee per unit of gas.
Complex smart-contract activity typically consumes more gas than simple transfers.
FAQs
Is gas itself a cryptocurrency?
No. It is a measurement of computational work.
What do I pay Ethereum gas fees with?
ETH.
In Practice
Dig Deeper
Transaction
A transaction is an action submitted to a blockchain that changes or records blockchain state. Transactions can transfer cryptocurrency, swap tokens, interact with smart contracts, stake assets, vote, mint tokens, or perform other network operations.
Network Fee
A network fee is the amount paid to a blockchain network to process and record a transaction. It is separate from fees that may be charged by an exchange, broker, or trading platform.