How much are Ethereum network fees?

As the second largest cryptocurrency blockchain, Ethereum is a platform for developing decentralized applications and smart contracts. One of the important issues that Ethereum users and developers face is network transaction fees. These fees, known as “Gas Fees”, are the cost required to compensate for the computational energy of processing transactions and executing smart contracts. The amount of the Ethereum network fee depends on factors such as network congestion and the computational complexity of the transaction; Of course, the price of Ethereum also affects the dollar amount of the fee. In this article, we want to see what Ethereum gas is, how much is the Ethereum network fee, how it is calculated, and finally ways to reduce it. Ethereum network fee We introduce Stay with us.

What is Ethereum Gas?

Gas Fee (Gas Fee) in the Ethereum network is a fee that is charged from users for processing and confirming transactions or executing smart contracts and is paid to validators (nodes that perform operations) of the network. In fact, gas measures the amount of computing power required to execute operations in the network. The more complex the operation, the more gas is required. A unit called Giga Wie or Gwei is used to measure gas. Similar to the cent, which is the smallest unit of the dollar, the Wei is the smallest unit of Ether (ETH) and is equal to 10 to the power of -18 Ether (0.000,000,000,000,000,000.1). Gas per Ethereum is paid in the form of the network’s native token, Ether (ETH). Using the JV unit makes it easier to determine the gas fee; Because instead of saying that the gas fee is 0.000,000,000.1 Ether, we can easily say that the transaction fee is 1 JV.

How is Ethereum gas fee calculated?

After the introduction of the EIP-15159 proposal in the Ethereum London Hardfork, the Ethereum network fee calculation structure was changed. Currently, the formula for calculating Ethereum transaction fees includes the following factors:

• Gus PriceGas price is the amount of gas that the user is willing to pay for each unit of gas due to network congestion.
• Gas Limit: Gas Limit is the maximum amount of work that the user estimates that a validator should do to process a transaction.
• Base fee: This amount is determined by the network itself based on demand.
• Priority fee: By setting this value, the user can encourage the validator to prioritize his transaction.

Gas cost = gas limit * (basic fee + priority fee)

Suppose 2 units of gas are needed to transfer 2 units of Ether, the network has set the basic fee at 11 JI and we have considered the priority fee at 3 JI. According to the above formula, the ether transfer transaction fee is equal to:

28=(3+11)*2

Therefore, in this transaction, in addition to 2 Ether, we have to pay 28 JV as a fee, which is equivalent to 2,000,00028 Ether. Now we can calculate the final fee amount using the dollar price of Ethereum.

Ethereum gas price depends on supply, demand and network capacity at the time of transaction. When the network congestion is high, the price of gas increases significantly, and vice versa, when the network is quieter, the price of gas decreases.

Why are some Ethereum network transaction fees so high?

The processing of more complex transactions, including transactions that involve interaction with smart contracts, require more processing power (gas) and are therefore subject to higher fees.

Why does the Ethereum network use Gas?

The use of gas in the Ethereum ecosystem has several reasons, the most important of which are:

• Encouragement of validatorsValidators are nodes that take responsibility for processing and validating transactions by depositing their ether assets. The network considers part of the transaction fee as a reward for the validators to maintain their motivation to ensure the security and integrity of the network.
• Prevent network attacksEthereum prevents malicious activities by considering Gas-Fi and prevents sending a wave of transaction traffic to the network.

What are the ways to reduce Ethereum network fees?

• Choosing quieter times: Ethereum network fee varies throughout the day and week. Transaction fees are usually lower when the network is in less demand, such as weekends or late at night. You can choose quieter times to transact using Ethereum gas tracker tools like EthereumScan.
• gas price adjustment: Using online tools to determine the gas price is another way to reduce Ethereum network fees. Although by reducing gas price, your transaction confirmation time increases; But the fee is significantly lower. You can use this solution when there is no need to do the transaction immediately.
• Using layer 2 networks: Layer 2 solutions such as roll-ups, side chains and payment channels are one of the effective ways to reduce fees and increase the speed of transactions. Layer 2 networks help to scale and reduce fees by using various solutions such as aggregating multiple transactions into a single transaction or performing transactions outside the main chain. By conducting transactions in networks such as Arbitrom and Optimism, you can significantly reduce transaction fees.
• Using networks compatible with EVM: Currently, networks such as Polygon, Binance Smart Chain, Avalanche and Phantom are compatible with the Ethereum virtual machine and have more affordable fees than the Ethereum network.

What are the Ethereum transaction calculation websites?

In Ethereum explorers, in addition to monitoring transactions and viewing the data of such transactions, you can also use the tools for calculating gas fees. Ethereum is one of the most famous Ethereum browsers and offers a tool called Gas Tracker. Using this tracker you can estimate the lowest, highest and average gas prices for various activities on the network such as swaps, selling NFTs, asset bridging and borrowing. Also, the gas price heat map shows what hours of the week the network gas is less. Based on this map, you can find the right time to make profitable transactions. If you wish, you can also use Ether Scan alternatives to calculate Ethereum transaction fees:

• Blockchair: In addition to Ethereum, this search engine also supports other networks such as Bitcoin and Solana.
• Blockchain.com (Blockcahain.com): Although this browser is mostly used for the Bitcoin network; But it also supports the Ethereum chain and provides a set of information about Ethereum transactions.
• Blocknative: The native block browser shows the price of gas at any moment by providing a tool called “Ethereum Gas Estimator”. Using this tool, you can choose the best time to make cost-effective transactions on the Ethereum network.

Important points in calculating Ethereum network fees

Ethereum network is one of the most popular blockchain chains and many users in this ecosystem use DEPS and smart contracts. One of the most important questions for users is how much the Ethereum network fee is and how it is calculated. The price of Ethereum Gas is variable and can change at any moment based on network congestion. Gas prices are usually higher during peak network traffic times. The type of transactions also affect the amount of network fees; Because the more complex the transaction calculations are, the more computing power it needs. Ethereum price fluctuations can also have a significant impact on the final cost of transactions. Users of the Ethereum ecosystem can perform more cost-effective transactions by accurately understanding the parameters affecting fees and using appropriate solutions.