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Overview Video

All about Gas

Gas is the payment that is sent to the ethereum node operators (also called miners), in exchange for execution of a smart contract. Paying miners on Ether is not unlike how you pay your electric company for electricity.

Gas is denominated in ETH or in 1/10**18 of a ETH, also called a WEI. You may also see gas denominated in GWEI, which stands for giga-wei, and is 10**9 of a WEI.

Gas & You.

When you submit a new transaction to the ethereum network (example to the right), you may be asked to input a Gas Price. In most cases, the gas price will be prefilled for you, but you can also override it to make your transaction confirm quicker (more gas) or cheaper (less gas).

Gas & Mining

This quote from website CryptoCompare, articultes some of the design of the gas system on Ethereum:

'Gas is the internal pricing for running a transaction or contract in Ethereum. It's to decouple the unit of Ether (ETH) and its market value from the unit to measure computational use (gas). Thus, a miner can decide to increase or decrease the use of gas according to its needs, while if need be, the price of gas can be increased or decreased accordingly, avoiding a situation in which an increase in the price of ETH would cause the need to change all gas prices. This is also a response to the discussion in bitcoin about fees structure ~ CryptoCompare

What is if the difference between gas price & gas limit?

Gas limit is how many cycles (think opcodes) your transaction will take..

Gas price is how much you'll pay per unit of gas

When you multiply the gas price * gas limit, youll get the cost of the tx.

Gas & Decentralization

Gas is important because it incentivizes miners on the Ethereum network to process transactions. Ethereum is a decentralized network, which means your application is unstoppable. Unstoppable applications would be possible without gas!

More questions? Check out the rest of the Gitcoin Gas Station, above, or reach out on slack.

@owocki