What does gas fee mean (how to calculate gas fee)

What does gas expense mean? According to Etherscan data, the average gas expense of Ethereum network is about 0.009 dollars per transaction. At present, the highest transfer fee on the Ethereum blockchain is Bitcoin, which reached the highest level in history (about US $23000) on January 4, 2018 However, over time, this situation began to change and gas costs also saw a significant decrease. Due to the steadily increasing and decreasing transaction fees on the Ethereum chain, it is necessary to adjust these fees to adapt to the future development of the Ethereum chain

How to calculate gas fees

Editor’s note: This article is from Cryptovalley Live (ID: cryptovalley), authored by LarsWagner, translated by Liam, and reprinted by Daily Planet with authorization The cost and efficiency of conducting transactions on blockchain are important indicators for measuring user experience. When we combine computing resources in the network with other data, we find that it is a very important factor because it means you have enough time to process complex and cumbersome data. Therefore, gas fees are one of the important parameters and the most noteworthy transfer, and it is precisely due to these factors that gas fees are so high. What is GAS fee? For anyone, gas prices usually increase or decrease over time. For example, if we deposit 100Gwei or 50ETH as a handling fee in a certain chain, this number will decrease to below 150GWei. That is to say, if you purchase a DAPP using 30Gwei or 60ETH, your gas fee will be $3. But if this situation does not occur and persists for a long time, a gas fee of more than $2 will need to be paid. Why is this? Because the cost of a transaction calculated based on the average gas value is around 200gwei

Although the price of Ethereum fluctuates greatly, the demand for Ethereum network still exists. However, if we assume that the miners on the Ethereum network can earn about 50000 dollars of network fees every day and are willing to pay more fees, we can draw a conclusion:

1. If more than 100000 active transaction verification nodes participate in this activity, someone will package a new contract every few days. This is why Ethereum now has a large number of active wallets. Of course, this is just to provide rewards for those who are not familiar with it. 2. When trading on exchanges with high gas fees, you need to confirm through various methods, such as using ETH-USDT transactions. If you want to use Ethereum ERC-20 token for transactions, you must first create an ERC20Token. At present, the ETH/ERC20 protocol has supported several mainstream assets such as Bitcoin and Litecoin. 3. In addition to the two currencies mentioned above, other virtual currencies can also be used for transaction operations. For example, Ethereum’s Stablecoin USDC is being accepted and tested by more and more developers for use in their applications. 4. If the Ethereum ecosystem wants to obtain more user funds and users who want to join DeFi, they may have to choose other types of DeFi products.