Gas Fees in the Ethereum Blockchain

[Suba]

Gas Fee is a fee that must be paid by users when making transactions with either Ether or ERC-20 tokens. This gas fee is required to validate each transaction or create a new contract on the Ethereum blockchain. So actually Gas fees are like fuel that can drive the Ethereum network. Gas fees are expressed in Gwei which is a fraction of Ether, 1 Ether = 1000000000 Gwei or 0.000000001 ETH

Why is the Gas Fee so high?
The Ethereum blockchain is the densest blockchain and is most widely used by developers, so the blockchain path has many transactions or full blocks so that the gas fee will also increase with each additional transaction.

 

[Kirubel]

Good explanation, yeah the gas fee is a payment we maid in order to complete the transaction that we order, like you explained it much easier to understand, and yeah the Ethereum gas fee is high and that's why most of the time we don't use Ethereum for transaction in order to avoid the gas fee.

 

[Suba]

Good explanation, yeah the gas fee is a payment we maid in order to complete the transaction that we order, like you explained it much easier to understand, and yeah the Ethereum gas fee is high and that's why most of the time we don't use Ethereum for transaction in order to avoid the gas fee.

As an Ether hodler, I do not carry out transactions to send or make payments with Ether, so the Ether I own is stored and staked in my personal wallet. I will convert it to fiat money or stablecoins if the price skyrockets, which may happen in 2025.

 

[Kirubel]

As an Ether hodler, I do not carry out transactions to send or make payments with Ether, so the Ether I own is stored and staked in my personal wallet. I will convert it to fiat money or stablecoins if the price skyrockets, which may happen in 2025.

Oh that's a good idea, only holding the Ethereum coins for profit from staking and never maid transaction with it is good one, i used to hold bitcoin but then i start to learn trading and o get more profit from trading than holding coins.

 

[Suba]

Oh that's a good idea, only holding the Ethereum coins for profit from staking and never maid transaction with it is good one, i used to hold bitcoin but then i start to learn trading and o get more profit from trading than holding coins.

We have to use both active and passive, if we are active as traders we only use part of our assets, a maximum of 20% of the crypto we own so that we will not take too big a risk.

 

[riberet19]

I think that the Ethereum blockchain from its beginning was not designed well to have cheap transactions, on the other hand, it is a blockchain that generally has a lot of use, both in users using the main blockchain and also using the immense amount of tokens that circulate through its network, that is why I think it has such high gas fees.

 

[Suba]

I think that the Ethereum blockchain from its beginning was not designed well to have cheap transactions, on the other hand, it is a blockchain that generally has a lot of use, both in users using the main blockchain and also using the immense amount of tokens that circulate through its network, that is why I think it has such high gas fees.

You are right, one of the causes of high gas fees is caused by smart contracts that fill the Ethereum blockchain, making validators more expensive and also the conversion costs from coins to Gwei are also high.

 

[riberet19]

You are right, one of the causes of high gas fees is caused by smart contracts that fill the Ethereum blockchain, making validators more expensive and also the conversion costs from coins to Gwei are also high.

That's all, that's why blockchains like Polygon Matic have been used to reduce the total number of transactions carried out on Ethereum and decongest the network, but it is still difficult to achieve.

 

[Crystal]

The Ethereum Blockchain ecosystem has what we know as burning mechanism, sending Ethereum gas to null address to maintain the network. Hence the high gas fee has is purpose.