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Understanding Ethereum and gas

Crypto basics · Beginner · 5 min read

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The essentials

Ethereum executes programs called smart contracts. Transactions consume computational resources measured in gas, and users pay fees in ETH. A successful transaction can change balances or interact with a decentralized application.

What to consider

The base fee varies with demand and is burned; a priority fee incentivizes inclusion. A reverted transaction can still consume gas because validators performed computation. Layer-2 networks offer different costs and security assumptions.

Put it into practice

Check the destination network and preview the transaction. Keep enough native ETH for fees and never assume a token balance can pay gas.

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