Ethereum Gas Fees: Their Necessity and How They Work

Ethereum gas fees: is it necessary?

We remember: Ethereum is a decentralized network. Since there is no central authority to ensure that everything is done properly, the network has to take over this part. This is where the validators come into play. They confirm transactions and check them for accuracy. In return, they get rewards, including a share of gas fees that users have to pay to conduct transactions on the blockchain.

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Without these gas fees, the Ethereum network would be vulnerable to so-called “spam” transactions that could overload the network and affect its performance. So gas charges ensure that the network runs smoothly and efficiently.

What are the Ethereum gas fees?

The base fee for Ethereum transactions is calculated using a specific formula. The block size of the previous block in the blockchain is compared with the expected size of the new block. If the new block is larger than the previous one, the base fee will be increased by 12.5 percent. This is to prevent blocks from becoming unnecessarily large.

In addition to the base fee, you have the option of adding a tip to the transactions. This increases the chances that your own transaction will be selected by the validators. This system ensures that transactions that need to be carried out more urgently can be prioritized by offering a higher gas price.

I don’t want to pay any additional fees – will my transaction still go through?

Even if you don’t want to tip, the transaction will go through sooner or later. However, it may take a few blocks for the transaction to be recorded. Because validators optimize the arrangement of the blocks so that as much as possible fits in, ergo: that they get as many gas fees as possible. Transactions with large tips are prioritized. But if there is still some space, smaller transactions with little or no tip are also pushed in.