What is Gas in cryptocurrency?
A “gas” denotes the price or fee that should be paid by users for a transaction to be successfully executed or contract realized on the Ethereum blockchain. Gas is required for a transaction to be validated and confirmed. The amount of gas depends on the type and size of an individual transaction. In simple terms, gas represents the fuel needed for the Ethereum blockchain network to operate by paying rewards to miners that track transactions executed on the specific network.
An insufficient or low gas limit could result in a failed or rejected transaction. The gas paid for a transaction is non-refundable irrespective of whether the transaction is successful or it is rejected. In cases where a transaction is executed before reaching the gas limit, any remaining gas is returned to the sender.
The amount of gas paid is related to the supply and demand level on the network. During increased workload on the network, the gas prices increase, while in periods of reduced activities, the gas prices decrease. Also, complex transactions will come with a higher gas price.