What is Ethereum Gas Fee? How is the fee calculated?
DeFi is very hot this year. Many retail investors want to enter this track, but find that the gas fee is quite high. According to the website (eth.btc.com/), the current gas fee of Ethereum is 433Gwei. In the first half of the year, some DeFi mining projects are not suitable for small funds to participate casually, because users may not even earn back the Gas fee in the end.
- What is Gas Fee?
Smart contracts refer to contracts that can be automatically executed by computer code; the Ethereum virtual machine is used to execute smart contracts. The function of smart contracts is not for nothing, so when you trade in Ethereum, you have to pay the miners a fee.
Gas literally means: gas, gasoline, is a kind of fuel. When you send tokens, execute contracts, transfer coins, or do other things on the Ethereum block, the computer needs to perform calculations, and this calculation process consumes network resources. You have to pay the "gas fee" (Gas) to let the computer work for you and let the miners process transactions for you. Technically speaking, Gas exists inside the Ethereum virtual machine as a counting unit for computing workload. Gas fees are paid entirely in ETH.
The level of gas costs
The more complex the operation performed, the more Gas is required to complete the operation.The Ethereum system stipulates two accounts: normal account and smart account. If a normal transfer transaction calls a "normal account", the gas required is fixed at 21,000; if a "smart account" is called, the gas required is different because of the complexity of the smart contract. The more resources (calculation, memory, etc.) required to process transactions, the more Gas is required.
Due to the limited computing resources on the network, if many people operate on the Ethereum block, the Gas price will increase. In addition, if the network is not fully utilized, the Gas market price will drop. Therefore, the explosion of Defi mining and various lock-up loans this year has led to the skyrocketing gas fee of Ethereum.
Gas fee can be set by yourself. In the event of network congestion due to high usage, transactions with the highest gas fees will be prioritized and added to the blockchain. Because the more value miners get from a transaction, the more likely they are to choose the transaction. If the Gas fee is set too low, the miners' reward will be reduced, and the transaction processing time will be extended. If you are not in a hurry, just set a gas price that is above the miner's price floor.
How to calculate the Gas fee?
Gas transaction fee = GasPrice * GasUsed
Gas Price: It is the price that users are willing to pay for each Gas. The general unit is Gwei, which is the amount of Gwei. 1Gwei=0.000000001 ether.
Gas Used: It is the total amount of Gas consumed by users to perform operations.
Example:
Example:
Suppose I am willing to pay a Gas limit of 40,000 gas for a transaction, assuming the average market price of Gas is 100 gwei, then the transaction fee is: 40,000*100=4,000,000 gwei. Because 1gwei=0.000000001ether, the Gas fee that needs to be spent is 0.004ether. In real transactions, these do not need to be set. Now the wallet can customize the Gas fee, and the user only needs to pay with one click.
