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Block #9

Technology

Gas

The fee you pay to have a transaction processed on a network such as Ethereum.

Explanation

Gas depends on network congestion and the complexity of your transaction, not on the amount you send. Layer 2 networks cut those costs sharply.

01

What you pay and why

Gas is the unit of account for the work the network performs for you. A simple transfer costs little, a complex smart-contract interaction much more. The total is gas units times the price per unit; that price rises when many people compete for space in the same block.

02

How to pay less

Trade outside US peak hours, use a layer 2 for small amounts, batch actions where possible and postpone non-urgent transactions until gas drops. A 20-euro transaction carrying 15 euros of fees is rarely sensible — that is precisely what layer 2 networks exist for.

Key takeaways

  • Cost depends on complexity and congestion.
  • Layer 2 for small amounts.
  • Failed transactions also cost gas.

Frequently asked questions

+Why did my transaction fail yet still cost money?

The network performed computation up to the point where the transaction reverted. That work is compensated, even without a result.

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