What Are Ethereum Gas Fees?
Ethereum gas fees are the transaction costs incurred on the Ethereum blockchain, essential for compensating the computational energy needed to process and validate transactions and smart contracts. These fees are dynamic, fluctuating in response to network demand and the complexity of individual transactions. Denominated in gwei, a smaller denomination of Ethereum’s native cryptocurrency, Ether (ETH), the cost of gas fees is determined by the transaction’s computational requirements and the prevailing gas price, which is influenced by the level of network congestion. Understanding Ethereum gas fees is crucial for users engaging in activities on the Ethereum network, as it directly impacts the cost and efficiency of transactions.