What Is Gas?

Gas on the Ethereum network is the compensation given for utilizing the platform's computational power. This fee is essential for activities such as launching decentralized applications (DApps) and basic transactions like sending ETH. Users pay this fee in Ether (ETH), the native currency of the Ethereum platform.

Gas is measured in small units known as gwei, with one gwei equal to 0.000000001 ETH. The amount of ETH paid in a transaction depends on the resources needed for the transaction and the blockchain's congestion level.

The introduction of transaction processing costs on the blockchain simplifies resource computation for executing transactions. It also distinguishes between computational expenses and the digital currency itself. Charging fees for each transaction acts as a deterrent against spamming and enhances network security.

Users can estimate their gas costs using platforms like ETH Gas Station. However, lower-priced transactions may take longer to process, as miners prioritize transactions with higher fees, which are more lucrative for them.

To illustrate, consider moving funds between traditional bank accounts. In the Ethereum network, the total ETH involved in a transaction is equivalent to the amount being moved, and the gas fee is akin to the transaction fee in traditional banking.

It's crucial to note that gas on the Ethereum network differs from GAS on the NEO blockchain. While on NEO, GAS is a standalone currency, on Ethereum, it represents the cost of running transactions.

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