How ethereum gas fee work?? | Bitcointalksearch.org

redsun114

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Quote from: ZAINmalik75 on July 02, 2021, 06:39:36 AM

I observe ethereum gas fee from previous 2 years . but I am confused because I not get the reason that why ethereum fee become high and high automatically and become low and low automatically without any reason and especially ethereum gas fee become too high in claiming of any ido token .
What the reason behind it what kind of mechanism behind it which control ethereum gas fee.
Plz share your taughts

Well, it’s like the normal thing that happens with every cryptocurrency. I believe you’re also investing in Bitcoin, because if you are, then you’re going to see the same thing happening with Bitcoin. There are times that the market will go high in price and you will notice that the fees for your transaction is high.

And when the market goes down the fees will also go down. And sometimes it can also be because the Blockchain is congested , and it shows that at that moment a lot of people are ready to pay that much for their transaction to be confirmed. But with time it will still go down when the market is less congested.

evilgreed

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The way I understand it is it works just as how bitcoin does. In a sense, the fees for transactions depend on the number of users and the type of person making transactions. Like for example; when there are a lot of people using the blockchain, then the transaction speed will obviously be slower and to prevent this, some people offer higher fees than the others to speed up their transactions. This happens mostly when there are events or ICOs. I wish I could explain it in a more detailed way but that is the best I can do. Regardless, I hope this helps.

el kaka22

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The main logic was that there are miners who are getting rewarded, "technically" speaking it could get to free as well, gas fee usually charges depending on how clogged the blockchain is and for per block the highest paid ones get processed and if you pay the most then yours will be the fastest and if you pay very little then yours will be either not processed at all or it will be very slow. So what happened was that there were tons of people doing something and they paid a bit, and others paid even more to get ahead, and then others paid even more and it kept going like that because people wanted to be the first.

Eventually it reached to 40+ dollars at some point not because that is how much transactions there were and we needed it, but because people wanted to be the first, leave the price under 1 dollar and not rush your moves and it would have still worked. Which is what is happening nowadays anyway.

bhadz

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The fee relies on the network. If there's too much transactions that are pending on the network, it makes the next transactions that we will do higher in fees.
But if the network doesn't have that much and it's seem to be empty, that makes it a good time to do transaction because it's not congested and fees are cheaper.

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Quote from: ZAINmalik75 on July 02, 2021, 06:39:36 AM

I am confused because I not get the reason that why ethereum fee become high and high automatically and become low and low automatically without any reason and especially ethereum gas fee become too high in claiming of any ido token .

It is not automatically high or low. Nothing is automated like that.

Quote

What the reason behind it what kind of mechanism behind it which control ethereum gas fee.

There are reasons such as DeFi and DEXs, high demand on Ethereum and so on.

There are some tips to make plans and broadcast your transactions with as cheapest transaction fees as possible.

Above are general stats for gas price. Please use Gas Now to know calendar days and hours intra-day that usually give discounting gas price

Customize the filter (Rapid, Fast) and scroll the gas price (at bottom) left to right and vice versa..

bitkanu

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Some people above me already mentioned the correct point about the ethereum fees but i must tell you something if there's no limitation between the transaction that was putting more fees and less fees.
The block will be prioritizing the transaction with the high fees and when all of blocks were taking the transaction with the high fees and that will make the tx fees starting to increase.
That means if all totally depend with the network traffic and the block. More transaction got stuck and this will force some people to put more fees and that will trigger the block to increase the fees.

apa don

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Quote from: vv181 on July 02, 2021, 07:53:07 AM

The reason why gas fees rose up is because the network is congested by the demand of Ethereum operations. Meanwhile, if the demand is high, users are competing to get their transaction processed faster, consequently, they set a higher price to make the tx fast. And so does the vice-versa, if the demand is low, the fee isn't too pricey.

Yes, that's clearly what you think, the Ethereum that you feel now is a matter of pride for those who invest in long-term or future projects, and for those who invest it is not a serious thing in terms of responding to working gas now.
now, its high or low working gas now it will be normal in working gas.

Yogee

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Quote from: ZAINmalik75 on July 02, 2021, 06:39:36 AM

What the reason behind it what kind of mechanism behind it which control ethereum gas fee.

Ethereum network becomes congested if there are more transactions generated than what it can handle. The result of this is that users will have to compete for the gas fee and that's what drives it up. Some people are willing to pay higher and miners would prioritize them over those who pay lower fees.

Ethereum miners increased the gas limit to 15 Million two months ago after Vitalik's proposal. That means the transactions that can be included in each block also increased. This helped relieved the congestion in the network and reduced the fees.

Jackl87

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Quote from: ZAINmalik75 on July 02, 2021, 06:39:36 AM

I observe ethereum gas fee from previous 2 years . but I am confused because I not get the reason that why ethereum fee become high and high automatically and become low and low automatically without any reason and especially ethereum gas fee become too high in claiming of any ido token .
What the reason behind it what kind of mechanism behind it which control ethereum gas fee.
Plz share your taughts

The gas fees don't become high and low out of nowhere automatically as you said but is always a matter of how high the traffic on the Ethereum network is at the moment. It's actually quite simple. Only a certain amount of transactions can be managed within 1 Ethereum Block (around 150 per Block) and a new block is mined approximately every 13 seconds. Whenever there is a lot going on in the ETH network like in times of a pump or a dump where a lot of people want to sell their tokens or buy new tokens then a lot of transactions need to be processed. Which means more and more transactions are pending. If you want your transaction to be processed fast than you need to increase the gas price to get ahead of all those pending transactions. That's how the gas price can increase so massively over a short period of time.

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Quote from: vv181 on July 02, 2021, 07:53:07 AM

The reason why gas fees rose up is because the network is congested by the demand of Ethereum operations. Meanwhile, if the demand is high, users are competing to get their transaction processed faster, consequently, they set a higher price to make the tx fast. And so does the vice-versa, if the demand is low, the fee isn't too pricey.

In other words, the more successful the network due to increasing volume of transactions, the more the fees can go high and this can be borne by the users. The users are the ones creating the demand and they gonna suffer for it because they are trusting Ethereum. Sadly, this is quite true not just in Ethereum but in Bitcoin as well when there is remarkable congestion. We are hoping that solid solutions can be introduced on this as this is not really sustainable. Hopefully, upgrades in Ethereum will slowly ease the fees down to acceptable levels.

vv181

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The reason why gas fees rose up is because the network is congested by the demand of Ethereum operations. Meanwhile, if the demand is high, users are competing to get their transaction processed faster, consequently, they set a higher price to make the tx fast. And so does the vice-versa, if the demand is low, the fee isn't too pricey.

ZAINmalik75

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I observe ethereum gas fee from previous 2 years . but I am confused because I not get the reason that why ethereum fee become high and high automatically and become low and low automatically without any reason and especially ethereum gas fee become too high in claiming of any ido token .
What the reason behind it what kind of mechanism behind it which control ethereum gas fee.
Plz share your taughts

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