Gas is how we measure the amount of work or “effort” required to complete on-chain operations on the Ethereum network.
May 25, 2022 · 3 min read
'Gas' is how we measure the amount of work or “effort” required to complete on-chain operations on the Ethereum network. In simple terms, gas is needed to make transactions, the same way in which Divi is required to send Divi.
👉 Gas is required to complete transactions on the Ethereum network
👉 Gas fee’s fluctuate based on how congested the network is
👉 With DiviWallet, you can set an alert to notify you when a gas fee threshold is met
👉 Fees can be expensive, so make sure you are aware of how much you’re paying!
Ethereum currently uses a combination of Proof of Work and Proof of Stake Consensus. “Gas” is how we measure the amount of work or “effort” required to complete on-chain operations on the Ethereum network. Since each Ethereum transaction requires work, any such transaction requires a fee. A Gas fee refers to the fee required to conduct a transaction on Ethereum successfully. Basically, you can think of a “gas free” as a transaction fee for using the network.
These gas fees are paid in Ethereum's currency, ether (ETH). Gas prices are denoted in 'gwei', which itself is a denomination of ETH. Each gwei is equal to 0.000000001 ETH. Phew. Confused? That’s ok. It’s not crypto-made-easy. Just remember. Gas fees are transaction fees, and you use ether to pay for them.
The way Ethereum transactions are submitted and mined can lead to competition for the order in which transactions are processed. Without getting into the technical mechanics, imagine this scenario.
You want to make a transaction, so you say to the Ethereum miner, I’ll pay you 10$ in Eth to do this for me. However, someone else also wants to transact, but they are in a hurry. So they say to the miner, “I am happy to pay 15$”. This person’s transaction is now a priority over yours because the miner will select the greater bounty. If you’re not in a rush, you can just wait, and the price will usually settle, depending on the network congestion.
The Ethereum network is incredibly active, with thousands of NFTs, smart contracts, protocols, and chains all demanding resources. It is for this reason that gas fees can often be very high.
Divi users may be unfamiliar with network congestion and high fees (we’re pretty proud of our network performance). Thankfully Divi Wallet makes this somewhat confusing process easier, with the use of a few features.
Within Divi Wallet, it is possible to set a low, medium, or high priority on your transaction. If you’re not in a rush to send it, choose the lower option (cheaper), and wait patiently. If you need it sent in a hurry, choose the high priority option (more expensive). These are calculated for you by Divi Wallet, based on the current network congestion.
If gas is really high, those options may not suit you. So we’ve created a little alert that allows you to set a limit, and when the fees drop to that level, you will be reminded, and you can make your transaction then!
There is so much more you could learn about gas fees and the Ethereum network. However, it’s not crypto-made-easy. All you really need to know is that the fees to use Ethereum fluctuate, and can sometimes be expensive. By using Divi Wallet, you can manage these costs, and transact when it suits you.
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May 25, 2022 · 3 min read