Table of Contents

  1. What are Ethereum gas fees?
  2. How are gas fees calculated?
  3. Why are ETH gas fees high?
  4. How does the Ethereum Merge affect gas fees?
  5. Frequently asked questions about ETH gas fees (FAQs)
  6. Buy Ethereum via MoonPay
  7. Sell Ethereum via MoonPay
  8. Swap Ethereum for more crypto

Mrig P also contributed to this article

When it comes to decentralized applications (dApps), there is one clear blockchain leader: Ethereum.

As the world's first, largest, and most widely used blockchain for DeFi, it hosts thousands of dApps that attract millions of users who conduct billions of dollars worth of daily transactions.

While these transactions differ in size, form, and nature, they all have one thing in common: they require users to pay gas fees. But what are gas fees and why are they necessary?

This article explains what Ethereum gas fees are, why they can be expensive, and how you can pay lower fees.

What are Ethereum gas fees?

Ethereum gas fees are the transaction fees users pay on the Ethereum blockchain to conduct transactions and execute smart contracts. Users pay this fee in Ether (ETH), while the network nodes earn a fraction of fees for validating transactions via Ethereum's Proof of Stake (PoS) consensus mechanism.

How are gas fees calculated?

To best understand how gas fees are calculated, we'll first need to clearly define a few terms.

  1. Gas: Gas is the unit that measures computational power required to conduct a transaction, which varies depending on the complexity of the transaction. The computation and gas units needed for a simple token swap, for example, will be much lower than for minting an NFT or publishing a smart contract.