The term for a unit of measurement for the computational effort required to carry out transactions, smart contracts, or the launch of DApps on the Ethereum network.
What is Gas?
Decentralized applications (DApps) and simple transactions, such as exchanging ETH between traders, necessitate the use of gas.
One Gwei is equal to 0.000000001 ETH. The amount of ETH paid in a single transaction is determined by the EVM’s (Ethereum Virtual Machine) capacity and the level of congestion on the blockchain.
In order to make it easier to calculate transaction costs, the cost of processing transactions was added to the blockchain. Furthermore, it distinguishes between the costs of computation and the value of the digital currency.
As an illustration, consider moving money from one traditional bank account to another. Alex pays a $5 fee to transfer $500K from his account to James’ account. In a transaction on the Ethereum network $5 is the gas fee charged to finalize the transaction.
GAS on the Ethereum blockchain is distinct from GAS on the NEO blockchain. On NEO, GAS is a currency in and of itself, whereas on Ethereum, it is a transactional cost.