Fees

What Is Gas (Ethereum)?

Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Priced in small fractions of the cryptocurrency ether (ETH), commonly referred to as gwei and sometimes also called nanoeth, the gas is used to allocate resources of the Ethereum virtual machine (EVM) so that decentralized applications such as smart contracts can self-execute in a secured but decentralized fashion.

The exact price of the gas is determined by supply and demand between the network's miners, who can decline to process a transaction if the gas price does not meet their threshold, and users of the network who seek processing power.

How are Ethereum transaction fees calculated?

The total gas fee is simply a price that covers the cost, plus an incentive to process your transaction. However, you should also consider the gas limit, which defines what's the maximum price paid for that transaction or task.

In other words, the gas cost is the amount of work required, and the gas price is the price paid for “each hour” of work. The relation between these two and the gas limit defines the total fee for an Ethereum transaction or smart contract operation.

Let's pick a random transaction on Etherscan.io as an example. The transaction cost 21,000 gas, and the gas price was 71 Gwei. So, the total transaction fee was 1,491,000 Gwei or 0.001491 ETH.

How much is a Tron transaction fee? How much does a Tron transaction cost?

A Tron transaction fee is the cost of having transaction data included in blocks added to the blockchain permanent record, which fluctuates under market supply and demand.

The average transaction fees are a fraction of a penny. Stakeholders get free, zero-fee transactions. Lots of factors affect transaction fees, such as the cost of electricity, the hardware capacity, and competition between miners, the number of simultaneous transactions competing to be included in a block.