BlockchainBeginner#Basics#Cost
Gas Fees
G
Definition
The cost required to perform a transaction or execute a smart contract on a blockchain network like Ethereum or Solana.
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Concept Diagram
Key Takeaways
1
Gas fees are payments to validators for processing blockchain transactions
2
Fees spike during network congestion as users bid for priority
3
EIP-1559 introduced a base fee burned plus a tip to validators for predictability
4
L2s and Solana offer fees at fractions of a cent for high-frequency use
Practical Example
During the Bored Ape NFT mint in April 2022, Ethereum gas fees spiked to over 8,000 gwei - a simple token transfer that normally costs $1 temporarily cost over $200.
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Related Terms
Blockchain
Gasless TradingA user experience where transaction fees are subsidized or paid in the asset being traded, common in account abstraction.
Blockchain
EVM (Ethereum Virtual Machine)The software platform that developers use to create decentralized applications and execute smart contracts on the Ethereum network.
Blockchain
Layer 2 (L2)A secondary framework or protocol built on top of an existing blockchain (L1) to improve scalability and transaction speed.
Blockchain
Smart ContractA self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
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