Why Does the Ethereum Ecosystem Use Gas? – The Merkle

Cryptocurrency enthusiasts venturing into the world of Ethereum for the first time will have to learn a thing or two at first. Although the learning curve is not difficult by any means, there are some things people need to take into account. One of the most confusing aspects is how the network uses “gas” to perform transactions and contracts on the Ethereum network. Now is a good time to take a closer look at what this “gas” even means in the first place.


Any cryptocurrency network uses some form of fee to perform transactions or actions on the network. In the Bitcoin world, this is a small amount of BTC which is paid to the miners for including the transfer in the next network block. On the Ethereum network, this fee is known as “gas”, which indicates an internal pricing for every transaction or contract on the blockchain. This “gas” amount is very small, though, but it needs to be included in every action regardless.

Gas was introduced as part of the Ethereum ecosystem so it could scale on demand. To be more specific, miners can increase or decrease the gas amount based on how thing are looking on the overall network. More specifically, it is designed in such a way a higher ETH price would not require all gas prices to be changed. Contrary to the Bitcoin ecosystem where fees go up during congestion periods, miners can decide what to do on the Ethereum network.

More at: Why Does the Ethereum Ecosystem Use Gas? – The Merkle


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