Gas is essential to the network. It is the fuel that allows it to lớn operate, in the same way that a oto needs gasoline khổng lồ run.

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To better understvà this page, we recommover you first read up on transactions & the EVM.

What is gas?

Gas refers to the unit that measures the amount of computational effort required to lớn exexinh đẹp specific operations on the network.

Since each transaction requires computational resources to exedễ thương, each transaction requires a fee. Gas refers khổng lồ the fee required to lớn successfully conduct a transaction on

Diagram adapted from EVM illustrated

Gas fees are paid in's native sầu currency, ether (ETH). Gas prices are denoted in gwei, which itself is a denomination of ETH - each gwei is equal to lớn 0.000000001 ETH (10-9 ETH). For example, instead of saying that your gas costs 0.000000001 ether, you can say your gas costs 1 gwei. The word 'gwei' itself means 'giga-wei', và it is equal to 1,000,000,000 wei. Wei itself (named after Wei Dai, creator of b-money) is the smallest unit of ETH.

Prior lớn the London upgrade

The way transaction fees on the network were calculated changed with the London Upgrade of August 2021. Here is a recap of how things used khổng lồ work:

Let's say Alice had to pay Bob 1 ETH.In the transaction the gas limit is 21,000 units and the gas price is 200 gwei.

Total fee would have been: Gas units (limit) * Gas price per uniti.e 21,000 * 200 = 4,200,000 gwei or 0.0042 ETH

When Alice sent the money, 1.0042 ETH would be deducted from Alice's account.Bob would be credited 1.0000 ETH.Miner would receive 0.0042 ETH.

This đoạn Clip offers a concise overview of gas và why it exists:

After the London upgrade

The London Upgrade was implemented on August 5th, 2021 lớn make transacting on more predictable for users by overhauling's transaction-fee-mechanism. The high-màn chơi benefits introduced by this change include better transaction fee estimation, generally quicker transaction inclusion, & offsetting the ETH issuance by burning a percentage of transaction fees.

Starting with the London network tăng cấp, every blochồng has a base fee, the minimum price per unit of gas for inclusion in this bloông xã, calculated by the network based on dem& for bloông xã space. As the base fee of the transaction fee is burnt, users are also expected lớn mix a tip (priority fee) in their transactions. The tip compensates miners for executing and propagating user transactions in blocks and is expected lớn be set automatically by most wallets.

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Calculating the total transaction fee works as follows: Gas units (limit) * (Base fee + Tip)

Let’s say Jordan has lớn pay Taylor 1 ETH. In the transaction the gas limit is 21,000 units and the base fee is 100 gwei. Jordan includes a tip of 10 gwei.

Using the formula above we can calculate this as 21,000 * (100 + 10) = 2,310,000 gwei or 0.00231 ETH.

When Jordan sends the money, 1.00231 ETH will be deducted from Jordan's account.Taylor will be credited 1.0000 ETH.Miner receives the tip of 0.00021 ETH.Base fee of 0.0021 ETH is burned.

Additionally, Jordan can also set a max fee (maxFeePerGas) for the transaction. The difference between the max fee and the actual fee is refunded to lớn Jordan, i.e. refund = max fee - (base fee + priority fee). Jordan can phối a maximum amount to pay for the transaction khổng lồ exexinh tươi và not worry about overpaying "beyond" the base fee when the transaction is executed.

Bloông xã size

Before the London Upgrade, had fixed-sized blocks. In times of high network dem&, these blocks operated at total capathành phố. As a result, users often had khổng lồ wait for high demvà to lớn reduce to get included in a blochồng, which led to lớn a poor user experience.

The London Upgrade introduced variable-kích cỡ blocks to lớn Each blochồng has a target kích cỡ of 15 million gas but, the kích cỡ of blocks will increase or decrease in accordance with network demvà, up until the blochồng limit of 30 million gas (2x the target bloông chồng size). The protocol achieves an equilibrium blochồng kích thước of 15 million on average through the process of tâtonnement. This means if the bloông xã kích thước is greater than the target bloông chồng kích cỡ, the protocol will increase the base fee for the following bloông chồng. Similarly, the protocol will decrease the base fee if the bloông xã kích thước is less than the target bloông chồng form size. The amount the base fee is adjusted by is proportional to lớn how far from the current blochồng form size is from the target. More on blocks.

Base fee

Every bloông xã has a base fee which acts as a reserve price. To be eligible for inclusion in a bloông chồng the offered price per gas must at least equal the base fee. The base fee is calculated independently of the current bloông xã và is instead determined by the blocks before it - making transaction fees more predictable for users. When the blochồng is mined this base fee is "burned", removing it from circulation.

The base fee is calculated by a formula that compares the kích thước of the previous bloông xã (the amount of gas used for all the transactions) with the target form size. The base fee will increase by a maximum of 12.5% per bloông xã if the target bloông chồng kích thước is exceeded. This exponential growth makes it economically non-viable for bloông chồng form size to lớn remain high indefinitely.

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