gas_fees

An anonymous crypto user has reportedly made a costly mistake, spending 34 ETH in gas fees to transfer just over $2,200 worth of Ether. This blunder resulted in a staggering $90,000 fee for a transaction that should have only cost a few dollars. According to data from Etherscan shared by a user called DeFiac on August 11, the user paid 34.26 ETH in gas fees (approximately $89,200 at current rates) to send 0.87 ETH, valued at around $2,262. At the time, Ethereum gas fees were as low as 2-4 Gwei, meaning a typical transfer would only set someone back about $5. This means the user overpaid by an incredible 1,783,900%.

Mistakes like these, often referred to as "fat-finger" transactions, are not rare in the crypto world. For instance, on October 10, 2023, an NFT trader accidentally paid 1,055 ETH (around $1.6 million) for an NFT that was only worth $1,000. Similarly, on April 6, a collector on OpenSea spent 100 ETH (about $191,000) on a free NFT mint, which led to allegations of wash trading. Even major players in the industry can slip up; in May 2021, Crypto.com mistakenly transferred $7 million to an Australian user, Thevamanogari Manivel, who then used the funds to purchase a luxury mansion in Melbourne and transferred around $4 million overseas. She was later sentenced to 209 days in jail for "trading in proceeds of crime."

While the excessive gas fee could be a simple error, it might also hint at a more complex scheme, such as money laundering. Users must be aware of which Ethereum validators are processing their transactions and ensure they are sent correctly. The anonymous user would have needed to coordinate closely with these validators to prevent funds from being misallocated. An October 2023 report highlights the importance of understanding crypto staking in this context.

#ETH🔥🔥🔥🔥 #ETH大涨 #gas_fees #gwei

A gas fee is the cost required to perform operations on a blockchain. Whenever you are sending or receiving cryptocurrencies like ETH or BNB, each of those transactions requires computational power to be validated and added to the blockchain ledger.
In other words, gas refers to the pricing mechanism that measures the computational effort needed to perform actions—from simple transfers of ETH to more complex smart contract executions. Think of gas as the “energy” that powers every transaction.
How Do Gas Fees Work?
When you initiate a transaction or execute a smart contract, your action requires a certain amount of computational steps. Each step consumes gas, and more complex transactions naturally consume more gas.
Gas fees are paid in gwei, a small denomination of ether (ETH). One ETH equals 1 billion gwei. By paying gas fees, you incentivize validators to include your transaction in the next block.
Gas fees calculation
To simplify, imagine that before submitting your transaction, you have to specify two things:
Gas limit: The maximum amount of gas you’re willing to spend.
Gas price: The amount of ETH (in gwei) you’re willing to pay for each unit of gas.
The fee you pay depends on the total gas used (which will always be equal or lower the gas limit) and the gas price:
Total Gas Fee = Gas Used x Gas Price
The gas limit protects you from spending more ETH than you intend. If your transaction consumes less gas than the limit, the leftover gas is refunded. However, if the gas runs out before the transaction completes, it fails, but the validators still collect the fees for the work done up to that point.
However, since the Ethereum London Upgrade in 2021, the gas pricing mechanism became a bit more complex. The gas pricing formula now looks like this:
Total Gas Fee = Gas Used x (Base Fee + Priority Fees)

#gas_fees #priorityfee #ETH #BNB_Market_Update #BTC

Hello everyone! In today's 100-day challenge in the crypto space, let's talk about Gas Fee (transaction fee), which is an inevitable part of cryptocurrency transactions and blockchain applications. Gas Fee plays an important role in incentivizing miners or nodes in the operation of the blockchain, and it is also one of the costs that traders are most concerned about. So, what is Gas Fee? How does it work? And how can we reduce it? Let's explore today!

Toll on the highway 🚗
Imagine you're driving on the highway; the toll booths on the highway are like the Gas Fee system of the blockchain: