Gm Gm web3 Fam! 👩🎤
Its Day 7 of #web3glossary
G: Gas, Genesis block, Gwei
LFG 🚀
In order to send and receive crypto on most blockchains, you must pay a transaction fee.
How’s it calculated?🤔
Let’s get this started with Gas - Fees, limit, and price👇
What is Gas?
Its a measure of the computational effort required to complete a transaction.
This fee is paid by a user to do a transaction/execute a smart contract on a blockchain.
The fee depends on the transaction’s complexity & the current demand of processing power on the network coz it’s used to compensate miners for providing the computational work required to process and validate transactions!
How much you spend to complete a transaction is = total amount of gas * gas price.
What’s gas price?🤔
Let’s take example of Ethereum👇👇
Gas fee is made up of Gas limit and gas price
📌Gas price = amt of Ether (ETH) a user pays for every unit of gas required to complete a transaction (denominated in Gwei).
📌Gas Limit - the maximum amount of gas that you’re willing to pay
Just like fuel, Ethereum only takes what is required to do the computation. You won’t be charged for what you don’t use!💯🚀
But what was Gwei again?
It’s price per unit of Gas.
📌Technically, Gwei is one billionth of something.
In Ethereum, Gwei is the smallest denomination of ETH, 1 Gwei = 10^-9 ETH
I am sure, web3 has become a tad bit simple for ya’ll by now, but do you know where do all blockchains start from?
The Genesis Block (Block 0) is the first ever block to which all other blocks are linked!
Genesis blocks are generally hardcoded into the software, since there is no previous block to reference to!
Satoshi Nakamoto mined this very first block for bitcoin blockchain, containing 50 bitcoins. It took him 6 days to accomplish this back in 2009.
Thats a wrap!
I’ll be sharing information on the new vocabulary of the web for next 30 days.
It’s like a free crash course on the terms and methodolgies in Web3.
📌Follow me @laishawadhwa for more such web3 gyaan!
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