Ethereum, like most blockchains, has transaction fees.These are based on the gas needed.
What’s gas ? It’s not the gas that helps your car run. Gas in the Ethereum sense is a unit of measurement for the amount of computational power that is required to run certain operations on the blockchain.
Operations such as transactions or executing smart contracts. The more complex the action, the more computing power it requires and so the more gas it will need. The miners providing the computational resources for an operation to be run, are paid in ether, Ethereum’s token. They are paid the equivalent of the amount of gas they’ve used in order to run the operation.
You pay for gas by calculating how much your operation will require for the network to run and specifying this amount before submitting to the network. The Ethereum Yellow Paper specifies exactly how much gas is required to run different operations or you can use one of the many gas calculators online like Ethereum Gas Station.
It’s important to remember that these are estimated recommended prices and are subject to change. It’s up to the buyers and sellers, in this case miners, to come up with a suitable price they agree on.
The amount you calculate is specified as a gas limit and it’s how much you’re willing to pay. Miners can then choose to accept or reject that amount by picking up the operation or not.
They can also refund some of your gas
for example : if you’ve overpaid or if it runs out of gas before completing and the operation has to be returned to the sender. It’s important to keep this in mind when submitting to the network because if this happens, the gas to partially run the operation is still owed and paid out to the miner.
There’s also a limit on how much gas can be spent per block. This means miners are less inclined to run operations with very high gas limits as it could waste part of the block gas limit. There are updates and improvements in the works, notably with Ethereum 2.0. So it’ll be interesting to see how gas might change in the future. If you’ve got more questions, let us know in the comments. While you’re at it, like, subscribe and hit the notifications bell. Why not, it doesn’t cost you anything.