What is Ethereum GAS? What if Ethereum Gas gets higher and higher?

Dec 16,2022
What is Ethereum GAS? What if Ethereum Gas gets higher and higher?

When it comes to Ethereum gas fees, many investors complain bitterly. With the increase of Ethereum users, Ethereum is becoming more crowded, so the mining fees on Ethereum are also rising. Because of the unique mechanism of miners' fees, users who pay higher fees can process their own transactions faster. People are willing to pay higher prices to enjoy high-quality services. So, what exactly is Ethereum Gas? What should we do if Ethereum Gas becomes more and more popular? Next, let's have a look.

What is Ethereum Gas?

To put it simply, Gas Fee is the service charge paid to the miners. When you transfer money in the Ethereum blockchain, the miners need to package your transaction and put it into the blockchain to complete the transaction. In this process, the computing resources of the blockchain will be consumed, so the fees must be paid.

Gas Fee is obtained by multiplying Gas Limit and Gas Price.

The initial value of gas limit varies in different stages and operations, but you can set your own gas limit during the operation. It should be noted that the number of gas units required to complete a transaction depends on the complexity of the transaction. The more complex a transaction is, the more computing resources must be consumed, so more gas needs to be invested.

Gas Price refers to the number of Gwei, which will pack your transactions to the blockchain speed. If the Gas Price is set larger, the miners will be given more incentive to package your transactions; On the contrary, if the Gas Price is set to low, it will take a long time to wait. If you don't rush to complete a transaction, you can choose a lower Gas Price to save money. In each transaction, you can adjust the Gas Limit and Gas Price according to the demand.

What if Ethereum Gas gets higher and higher?

Applying Ethereum and trying to do everything that happens on the application layer of Ethereum is probably the most efficient thing in your life now.

However, due to the recent high demand for Ethereum and the high gas cost, many people are deterred by the high price.

Good news? Ethereum is now building and expanding solutions to it, so the expensive gas price is not an uncertain worry. When Ethereum is still in the current transitional period, this is an issue that needs urgent attention.

You can use Ethereum to expand solutions. The Ethereum expansion solution ecosystem is still in the early stage, but the projects that have been carried out are impressive and are constantly improving every day. You can use these solutions to enjoy instant and ultra cheap Ethereum centered transactions!

In this field, you have Layer2 (L2) solutions, such as projects based on Optimal roll up or ZK roll up, which bring Ethereum's super efficient infrastructure and inherit all the security guarantees of Ethereum.

Later, you also have side chains, such as Polygon's PoS chain or xDAI, which are effectively separated and efficient blockchains, but are specifically aligned with Ethereum and meet its requirements.

As time goes by, it may be that you only occasionally interact with the Ethereum main chain and solve most encryption activities at affordable prices in L2 and cross chain environments. Therefore, it is a good opportunity to understand these solutions very early.

Speaking of this, I believe you have a certain understanding of what Ethereum Gas is and what to do when Ethereum Gas becomes more and more popular. In general, for the problem of high gas fees in Ethereum, some decentralized applications in Ethereum have clearly brought some goods that can minimize gas, such as Year's V2Vaults and Keeper DAO. These projects can automate and batch process customer transactions together, so it is unnecessary for everyone to pay gas fees manually once, which can reduce everyone's gas costs. You can also pay through DeFi Saver before knowing how much you will pay. Although this does not help save gas, it can help reduce gas costs.