What Is GAS? Ethereum HIGH Transaction Fees Explained

So what exactly is gas? Why are transaction fees so high at the moment? And what are some of the ways to make the transaction cost lower? You’ll find answers to these questions in this video.
Gas is a unit used for measuring the amount of computational effort required to perform specific actions on the Ethereum blockchain.
The name itself hasn’t been chosen by accident. Similarly to gasoline fueling a car and allowing it to drive, gas on the Ethereum network fuels transactions and allows them to perform different operations.
Every operation on the Ethereum blockchain, or to be precise on the Ethereum Virtual Machine (EVM), has an associated gas cost. For example: adding 2 numbers costs 3 gas; getting the balance of an account - 400 gas; sending a transaction - 21,000 gas.
Smart contracts usually consist of multiple operations that together can cost even hundreds of thousands of gas.
What is interesting is that the gas cost by itself doesn’t tell us how much we have to pay for a particular transaction. To calculate the transaction fee we have to multiply the gas cost by gas price.
The gas price is measured in gwei - a smaller unit than ether where 1 gwei equals 0.000000001 ETH. We can think about it as a major and a minor unit similarly to dollars and cents.
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[@Finematics]

💛 Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics ❓ What do you think about Ethereum gas and transaction fees? Comment down below 📘 Check out our FREE Guide to DeFi ► finematics.com/guide-to-decentralized-finance/ 👍 Hit the like button if you enjoyed this video 🐦 Follow Finematics on Twitter ► twitter.com/finematics

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[@Finematics]

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love this explanation, straight forward and easy to understand

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[@Finematics]

Thanks. Glad it was helpful! :)

[@AlfredodelArenal]

At least something awesome out of today's "hard way" of learning about Gas by spending quite a steep amount for a fairly small transaction was to find your channel! I already spent about an hour watching your videos and learning quite a lot already! Thank you!

[@Jeanneellis2000]

Alfredo del Arenal, I know what you mean, I too am here because I wanted to move my ETH from Coinbase to my Ledger Nano X it cost me half my ETH in gas ⛽️ fees 🥴 Live and learn. I am so happy to have found this Channel. I won’t make that mistake again. 😄

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@@Jeanneellis2000 So where do you store your ETH?

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Because if you leave it on let’s say binance you don’t actually own the keys so they own your ETH

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[@dareos3437]

Nice Video. Really liked how you explained the gas fees and what a gwei is. Mentioning EIP 1559 and how it is upposed to stablice the fees was great as well. Right now I only understand the proof of stake solution so I like that one the most.

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thanks!

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My eyes glazed over and I zoned out. Maybe I'm not smart enough to understand. But great video!!

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I simply love your content and channel, mate! Easy to follow and understand all these complex concepts. would you consider doing a video on other ecosystems such as zilliqa or waves? they have both recently launched their own DEX (and they solve the gas fees problem) and so, I'd like to hear your opinion on these. cheers!

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[@Finematics]

there is one on Layer 2, but I'm also making a new one on rollups

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Good video. We were performing some ETH transfers today and were shocked by the gas charges. Performing a defi transfer of $200 cost $50. That’s a 25% fee. The estimated fee for a $50 transfer was $25. I can’t see how eth will survive given these high costs. On the next rise of eth I’m pulling everything out.

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Just lost $18 moving $35 to a wallet. I don’t want to buy ETH at all if I can’t actually own it without paying that much.

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Yes ETH fees are a joke

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Very nice touch there at the end bringing awareness to the community in a subtle way. Cutting back on decentralization and security is not the vision that appeared a decade ago. Very well informed video and would really love to hear your opinion on the SPoS consensus (Ouroboros) used by Cardano, tokens treated as first class citizens and the general aspect of decentralization brought by a scientific peer review system. Thanks :)

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*Great* educational content

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thanks!

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very clean animations, me like

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The hand animation was really cool

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dope. thank you daddy finematics. this actually made a lot of things make more sense like "smart contracts r on the eth blockchain" and all i could picture was pieces of paper in space. but it makes a little more sense now

[@Finematics]

Glad to hear the video was helpful :)

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Thanks!

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"The Internet of Money should not cost 5 cents per transaction. Its absurd!" - Vitalik Genius.

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Man I wish I could draw like you, so satisfying

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Thanks! :)

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I didn't wait to smash that like bro, love the content

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thanks!! 💛

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thanks 👍

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Dude your vids are so well done and easy to fallow, keep it up, looking forward to eth 2.0

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Now it makes sense!!!

[@keerthanv.v.3599]

Great video, im trying to wrap my head around the Transaction failure part. You said if there no enough GAS left then the transaction fails and the transaction fee will still be charged. Who estimates the GAS fee? And if we are paying the GAS upfront why would the GAS get exhausted before performing all the operation? Is it because of the estimate being lesser than required GAS?

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Thanks so much. I was so confused. You deserve a sub and Like :)))))))

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[@Finematics]

Great to hear! Thanks :)

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Just a few days back I was searching for an explanation on GAS and the first thing that came to my mind was to see if this channel had already made a video on it :D Thankfully he uploads it today.

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Good vid

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Great explanation about Gas... thank you

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Thanks for the explanation

[@Finematics]

You're welcome! :)

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Awesome content man! Can you please do a video about Cardano, Polkadot, and some of the other blockchains that aims to compete with Ethereum?

[@Finematics]

Thanks. Yes, these videos are in the pipeline :)

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@@Finematics Thanks! Love your stuff!

[@diegor5805]

0:30 What is Gas? 1:25 Transaction fee 3:44 Mempool 4:52 Fee model 8:40 Layer 2 Scaling 9:00 Loopring 9:17 Matric/Polygon 9:29 Optimism 10:15 Ethereum 2.0 10:25 EIP 1559

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Loopring is way undervalued!

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thanks

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This guys awesome. Love the format of your videos

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Thanks! :)

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So much knowledge in one video. I will need to re-watch it to grasp all of it! Very informative. Thanks mate.

[@Finematics]

Great to hear! :)

[@therealzovictor]

explanation is good just a suggestion please try to dilute it down more for beginners and non newbies mate :)

[@chrisg220]

You mentioned the rise of alternative chains that aren't quite decentralized or permissionless. Which ones are those?

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Very interested in this also

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Hello, could you make a video explaining all the layers of the blockchain and how they relate to each other?

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Forget the gas, who can draw like that? Perfect.

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Fantastic video. I spent the weekend reading up on defi so this summarised my learning perfectly. Much appreciated!

[@Finematics]

Great to hear! Thanks :)

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Great video, thank you for such content!

[@Finematics]

Thanks! You're welcome :)

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Thank you, you are the best. Eth was powerful and really pioneer. Hoping that Eth2 will solve the problems.

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I'd love if you made a video about NFTs. I've been hearing a lot about them in the last week. Love your videos

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There is one on NFTs already :)

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@@Finematics what is NFTx ?

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We are ready for next video its been a week.....

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Me trying to buy $75 worth of Shiba coin and seeing the gas price being $115 😬

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Was at $400 when I tried🥲

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@@klc_257 same here. it is insane

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the gas fee is now $6500.

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@@danymmmdoodoodoo7303 lmao at this point I wish gas fee was a coin

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ggwp for getting a meaningless petcoin. sheesh.

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Please make a video on proof of state vs proof of work

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great visualizations, subscribed! what software is used to create this?

[@Finematics]

thanks, videoscribe

[@cl5619]

Oh so when Eth price goes up, the cost to operate on the network goes up in dollar terms. And as these fees get more expensive, the less desirable the network gets This is a major barrier to this often predicted price of 10-20k. People are complaining now about how costly these fees are. If ETH is 10k, those fees would be tripled.

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Each time you upload a video it uploaded to my brain by watching it 2 times minimum, Thank you very much for the work you do, by the way I will join pateon when I finish watching all your videos in this Chanel.

[@Finematics]

Great to hear! Thanks :)

[@m.minkov]

This is a great video yet again, thank you!

[@Finematics]

Thanks for watching! :)