Gas fees are the fees required to perform transactions or execute contracts on the Ethereum blockchain. They are measured in tiny fractions of the cryptocurrency ether (ETH) known as gwei (10-9 ETH).
Gas represents the computational effort needed for specific operations on the Ethereum network. These fees are paid in ETH, and their prices are denoted in gwei, with one gwei equal to 0.000000001 ETH. Gas fees play a crucial role in incentivizing network validators who secure the blockchain. Validators receive these fees for their services in maintaining the accuracy and honesty of transactions.
Gas fees are essential for ensuring the proper functioning of the network and act as an incentive for validators to fulfil their duties. While the term “gas fees” is commonly used in Ethereum and Polygon, other blockchains like Solana and Bitcoin refer to them as “transaction fees.” The term “gas” originated from the analogy of fuel that powers a vehicle, symbolizing these fees’ role in keeping the blockchain running smoothly.