Ethereum is one of the most popular coins. What you have to be careful about when dealing with Ethereum is the gas price. This gas fee may be charged as a fee, so you need to be careful.
What is Ethereum?
Ethereum refers to a platform equipped with smart contracts that can automatically execute contracts and blockchain technology that prevents tampering with contract details. Ethereum is primarily used to develop applications on the platform. Applications developed using smart contracts and blockchain technology are being put to practical use in various genres such as finance, real estate, and games. Ethereum has the following features:
A smart contract is a program that automatically performs a predetermined action by the user. Depending on the amount of ETH paid, appropriate services can be provided, so programs can be set up to automatically acquire specific data.
DApps is an abbreviation for Decentralized Applications. This indicates a system that encrypts and decentralizes transaction data recorded by blockchain technology. In DApps, all past operation logs are also recorded on the blockchain and can be viewed by all users. Code can be inspected by all users, making fraud and tampering extremely difficult.
The Ethereum mining method uses a method called PoW (Proof of Work). PoW is a mechanism that performs calculation processing when cryptocurrency transactions occur, and rewards are given to the person who processed the fastest. The higher the specs of the computer, the more advantageous it is for mining. Mining refers to a mechanism in which cryptocurrency rewards are paid to those who approve cryptocurrency transaction data.
What is gas?
Gas is a fee charged by Ethereum for users to interact with the network. It is an index that measures how many calculation steps are required for the transaction that the user wants to make. When sending virtual currency using blockchain technology, a fee will be charged to the person who performs the data calculation processing necessary for the transaction. Normally, this is the only fee, but in addition to this fee, Ethereum also requires a fee when executing a smart contract.
Why do you need a gas bill?
There are several reasons why Ethereum needs gas.
Reduce network load
Ethereum is the second largest cryptocurrency after Bitcoin. As the number of transactions using the Ethereum platform increases, the Ethereum network will be heavily loaded, and the speed of remittance will also decrease. In order to reduce the burden, we impose a fee called gas fee and control it.
Ethereum gas costs are incurred on all transactions. Those who carry out cyberattacks also have to pay for gas. This has the effect of eliminating the reason for cyberattacks as a result. This is not a direct reason, but it indirectly prevents cyberattacks.
The unit of gas is the wei. Wei is the smallest unit of ETH. Gradually increase the unit from here.
Gas bill calculation method
Gas limit is gas limit, Gwei is gas unit price. Multiply these two to get the official gas price. However, the gas fee will be refunded if there is a surplus after deducting the gas fee actually consumed.
Gas limit x Gwei – gas actually used = gas price actually paid
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