Ethereum gas is the force that powers the Ethereum network. But what is it, exactly? And why do you need to pay for it? In this post, we'll break down the basics of Ethereum gas and give you a better understanding of how it works.

What is Ethereum Gas?

Ethereum gas is a unit of measurement for the computational effort required to execute a transaction or smart contract on the Ethereum network. Think of it like the fuel for your car - just as your car needs gasoline to run, Ethereum needs gas to process transactions.

Why do I need to pay for gas?

You need to pay for gas because it incentivizes validators (the computers that process transactions) to do their job. Validators use powerful computers to process transactions and validate the Ethereum blockchain, and they need to be rewarded for their work. The gas fee is like a tip for the validator - it says, "Hey, thanks for processing my transaction!"

How does Ethereum gas work?

Here's a step-by-step explanation of how gas works:

1. You set the gas fee: When you send a transaction, you set the gas fee, which is the amount of ETH you're willing to pay for the transaction to be processed.
2. Validators select transactions: Validators select transactions to include in a block based on the gas fee. Transactions with higher gas fees are more likely to be included.
3. Gas fee calculation: The gas fee is calculated by multiplying the gas price (set by you) by the gas limit (set by you).
4. Block is mined: A validator mines a block and includes the selected transactions. 1.Gas fees are distributed: The gas fees are distributed among the validators who participated in the validation process.

Tips for saving on Ethereum gas fees

Want to save on gas fees? Here are a few tips:

• Submit transactions during off-peak hours: Most activity usually happens around US/EU business hours. Try to avoid these periods and send your transactions during off-peak hours.
• Use a low gas price: depending on the type of transactions, you can submit any transaction with a lower fee if they're not time-sensitive (e.g. sending ETH, ERC-20 tokens, approvals, bridging, etc.).
• Use Layer-2 solutions, like Optimism, Arbitrum, and zkSync, which off-load transactions to a separate chain to avoid congestion.
• Check the gas tracker to see when network activity is lowest.

Conclusion

Ethereum gas might seem mysterious, but it's actually pretty simple. By understanding how gas works, you can save on gas fees and make the most of your Ethereum experience. Happy transacting!