Gas is a fee that is paid by users of the Ethereum network to compensate miners for the computational resources needed to process and validate transactions and smart contracts.
When a user creates a transaction or smart contract on the Ethereum network, they must specify a gas limit and a gas price. The gas limit represents the maximum amount of computational resources that the transaction or smart contract can consume, while the gas price represents the fee that the user is willing to pay per unit of gas.
Miners prioritize transactions based on their gas price, so transactions with higher gas prices are typically processed faster. If the gas limit is too low for a transaction or smart contract, the transaction will fail and the user will lose the gas they paid.
Gas is typically denominated in “wei,” which is the smallest unit of Ether (ETH), the native currency of the Ethereum network. The gas price can fluctuate depending on network congestion and market conditions, so users must monitor gas prices and adjust their bids accordingly to ensure timely processing of their transactions and smart contracts.
