Understanding Ethereum Transactions and Gas Fees

Developers gain immense power by understanding blockchain fundamentals before diving into coding.

### Understanding Ethereum Transactions: Gas, Fees, and Basics of Blockchain Interaction
* 🔗 You can start interacting with Ethereum and its protocols without needing to learn how to code, but **understanding the underlying mechanics** will make you a **more powerful developer**.
* 💰 In this example, account one starts with **0.1 Sepolia ETH**, and after sending **0.05 ETH** to account two, account one will have **0.05 ETH remaining**.
* ⚙ Gas is a unit of computational measurement; the complexity of a transaction determines the **amount of gas required**, with simple transactions typically using **fewer gas units**.
* 📊 For instance, the transaction sent used **21,000 gas out of a maximum limit of 60,000**, highlighting its **relatively low complexity** compared to actions like minting an NFT.
* 💵 Transaction fees are calculated using the formula: **transaction fee = gas used × gas price**, which incentivizes nodes to **process transactions on the blockchain**.
* 🧑 Each blockchain has its own method for calculating transaction fees, and Ethereum nodes are compensated in **ETH** for processing transactions.
* 📉 The gas price can fluctuate based on network congestion; **more transactions lead to higher gas prices** to prioritize the processing of transactions.
* 🎉 Even without coding skills, you've learned how to **send transactions and interact with Ethereum** using MetaMask, opening the door to **further exploration in blockchain technology**.

Lesson 1 Part 5  | Gas I - Solidity & Foundry Full Course

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Nodes on real blockchain networks are paid in the native currency for processing transactions, providing an incentive to run them.

Ethereum nodes are paid in Ethereum, while Polygon nodes receive Matic, and L2s like Arbitrum and Optimism pay in ETH.

The payment structure is designed to encourage node operators, with higher gas usage leading to larger payouts.

Understanding Gas in Blockchain Transactions

Gas is a unit of computational measurement in blockchain, with more complex transactions requiring more gas.

Each transaction has a gas limit and usage, with the total gas used indicating its complexity.

The transaction fee is calculated by multiplying the gas used by the gas price, and users pay validators or blockchain nodes with the native token, such as ETH.

Understanding Gas Fees and Transaction Costs in Blockchain

Gas fees are added to the estimated transaction amount, with costs increasing during high-demand periods.

The transaction fee is paid to the block producer for processing, while the gas price determines the cost per unit of gas.

Higher gas prices increase the chances of a transaction being included in a block.

Understanding Gas Fees in Ethereum Transactions

You can specify the amount of gas to spend in the advanced tab, but selecting zero gas may prevent your transaction from going through.

The default gas setting is usually a good choice.

Transactions are broken down into small instructions, with each instruction having a specific gas cost, and the total transaction fee is calculated by multiplying the gas price by the gas used.

Interacting with Ethereum: A Beginner's Guide

You can start interacting with Ethereum and its protocols without coding knowledge.

Understanding the fundamentals of blockchain is crucial for becoming a powerful developer.

The guide includes a practical example of sending Ethereum from one account to another, highlighting gas information and transaction details.