Welcome to SPOZZ Help Desk

Categories

What are gas fees and why does the cost vary when making transactions?



A gas fee is the cost to perform a transaction or operation within the Ethereum network, for example. 

The value of transactions varies depending on the network one wishes to use, the complexity of the transaction being performed, the congestion on the network at any given time, and how quickly one wishes this interaction to be finalized.

Currently, the SPOZZ.club multichain ecosystem has the following networks:

-Ethereum https://ethereum.org/en/eth/, where the gas cost per transaction can become high at times. 

-Polygon https://polygon.technology/, where the cost of transactions is much, much lower.

-BNB Smart Chain https://www.bnbchain.org/en, whose cost per and transaction is also much lower than Ethereum.

 

Why do transactions have a cost?

Transactions have a cost because, for example, the Ethereum network operates through the Ethereum Virtual Machine (EVM).

The EVM consists of a multitude of computers distributed worldwide and interconnected through the internet.

For this large network to function, these computers require effort, including electricity consumption and a certain amount of time to perform their work.

To compensate for this temporary, computational, and electrical expense, the concept of Gas was created, which varies depending on the desired operation, network congestion, and the desired transaction speed.

In the Ethereum network, certain tasks cost more than others, as operations that require more resource usage from the nodes forming the platform will result in higher Gas fees.

For example, executing a smart contract with five different instructions will have a higher computational cost - in terms of Gas - compared to a smart contract with only one instruction.

Similarly, if one instruction is more complex to execute than another within a smart contract, it will require a higher Gas fee.


Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article