Gas fee

A gas fee refers to the fee required to conduct transactions or execute contracts on the Etherum network. It is compensating for the computing power used to process these interactions.

Called gwei, These fees are small fractions of Ether (ETH). These gas fees are used to reward miners for their computing power used in transactions verification. If the gas paid for a transaction is too low, miners can ignore the transaction.

Gas fees depend on the supply and demand for processing power on the network. For example, if the network has a lot of transactions, the demand for processing power will be high and will trigger an increase in gas fees.

This has been an issue for many users of the Ethereum network recently. Even more, since the network has been very active with the DeFi boom. However, in August, the London hard fork updated the network. It changed the way the gas fees calculation system should solve this problem.