Gas? That’s what we use for heating! That’s true, but the term has taken on another meaning through blockchainplatforms Transactions on the Ethereumnetwork incur fees, and this is the so-called gas price, as gas is the fuel for transactions. Gas is therefore not used for heating, but symbolically as fuel on the Blockchain platform.
The gas price is calculated in Gwei or Wei, the units of Ether (digital currency on the Ethereum platform). In this context, one Ether consists of one billion Gwei and one Gwei in turn is equal to one billion Wei.
Unlike the Bitcoin blockchain, where all transaction fees are calculated on a fixed basis, on the Ethereum platform the fees can be freely chosen. However, the amount has an impact on the transfer duration. A price of at least 21 Gwei is recommended. With even higher gas prices, the likelihood that the transaction will be settled quickly increases. At 21 Gwei, the settlement of a transaction would currently happen within 15 seconds. Smart contracts consist of multiple transactions and accordingly require more time.
The gas price required varies because it depends on the network’s workload. The more activities the network has to process, the more gas is needed. Similar to a heating system – the higher the temperature, the more gas is consumed. So, if duration is not an issue when processing transactions, a low gas price can be applied. In this case, 4-10 Gwei is sufficient. If, on the other hand, it is to go quickly, a higher gas price is advisable. As of today (16.11.2021), one Gwei is equivalent to 0.00241825 euros. The costs are therefore relatively low, but vary and depend on the current exchange rate. Translated with www.DeepL.com/Translator (free version)
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