What Are Gas Fees?

Gas fees in crypto are the transaction fees users pay to complete operations on a blockchain network — most commonly Ethereum. Think of them like a toll you pay to use the network’s infrastructure.

Here’s a quick breakdown:

🛢️ What Are Gas Fees?

On blockchains like Ethereum, gas refers to the unit that measures the amount of computational effort required to perform actions such as:

• Sending ETH or tokens
• Interacting with smart contracts
• Minting NFTs
• Swapping tokens on decentralized exchanges

The gas fee is the cost you pay to compensate the network's miners (or validators) for processing your transaction and keeping the network secure.

💸 How Are Gas Fees Calculated?

Gas fees are calculated with this basic formula:

Gas Fee = Gas Units × Gas Price

• Gas Units: The amount of computation your transaction needs (simple transfers use fewer units than complex contract interactions).
• Gas Price: The amount you're willing to pay per unit of gas, usually denominated in gwei (a small fraction of ETH).

Example:
If a transaction uses 21,000 gas units and the gas price is 50 gwei:
21,000 × 50 gwei = 1,050,000 gwei = 0.00105 ETH

⚖️ Why Do Gas Fees Vary?

Gas fees can change wildly depending on:

• Network congestion: More traffic = higher fees
• Transaction complexity: Smart contract calls cost more than basic transfers
• Time of day: Fees often drop during off-peak hours

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