[GUIDE] ETH Gas Prices

[Husires]

Table of contents

      1. What Is Gas?
      2. List of Gas Trackers
      3. Why Gas Prices are High?
      4. Layer 2 and which ones should you try?
      5. Are other chains as good as they claim?


What Is Gas?

Ethereum is the network (aka blockchain network), Ether is the Engine or supplier for that network.
when you do anything on the Ethereum blockchain, you must pay for that payment is calculated in gas which is paid in ETH.

It does not matter whether your transaction succeeded or failed. Even if you fail, miners must validate and execute your transaction and you are required to pay gas fee.

• open Etherscan.io and use can see transaction fee in ETH & USD.
• fee is paid to miners for mining transactions, putting them into blocks, and securing the blockchain.
• gas limit: total cost of a transaction multiplied by the gas price and it's the maximum amount of units of gas you are willing to spend on a transaction
• gas limit like the amount of liters of gas for a car
• gas price as the cost of that liter of gas
• Gwei is just a unit of Ether it is equal to 0.000000001 ETH

If you want to spend less on a transaction, you can do so by lowering the amount you pay per unit of gas.




List of Gas Trackers

• https://ethgas.watch/: an aggregated gas price feed that checks multiple data sources for the latest gas prices
• https://etherscan.io/gastracker: Gas Guzzlers, Gas Spenders, Historical Gas Oracle Prices
• https://www.gasnow.org/: ETH gas price forecast system
• https://ethgasstation.info/index.php: Ethereum gas estimator

Why Gas Prices are High?

Ethereum is getting more and more popular, more projects use Ethereum blockchain in NFTs, DeFi, Mainnet.
Gas prices are subject to their own markets of supply and demand
more people send transactions, gas prices will increase to reflect that
Average Gas Limit Chart shows the historical increasing gas limit of the Ethereum network. https://etherscan.io/chart/gaslimit



What are L2s and which ones should you try?

they all offload some of the demand from mainnet Ethereum while maintaining some or most of the security guarantees.

Remember, even though these protocols are promising, they are still early versions. Use with your own risk

list of L2s that are live now or soon that you can try out

• ZkRollups:
  
  
  
  • https://loopring.org/#/: Exchange and Payment Protocol
  • https://zksync.io/: scaling and privacy engine for Ethereum
  
  
• Optimistic Rollups:
  
  
  
  • https://optimism.io/:  (live in March) - Instant transactions and scalable smart contracts
  • https://www.xdaichain.com/: a stable payments blockchain designed for fast and inexpensive stable transactions

Are other chains as good as they claim?

"come to ____ chain, we've got low / no fees!!" no fees is always true:

• They cut corners on decentralization - most frequently by increasing the hardware or bandwidth requirements for nodes.
• They are hiding the true costs - like requiring users to stake funds to send transactions
• They will eventually run into the same issues as Ethereum - more users will inevitably lead to more congestion.

Sources

Code:

https://support.mycrypto.com/general-knowledge/ethereum-blockchain/what-is-gas#:~:text=When%20you%20send%20tokens%2C%20interact,your%20transaction%20succeeds%20or%20fails.
https://ethgas.watch/
https://etherscan.io/gastracker
https://www.gasnow.org/
https://ethgasstation.info/index.php
https://www.reddit.com/r/ethereum/comments/lt8xgw/high_gas_prices_info_resources/

[zasad@]

This protocol transfers funds faster between Layer 2 solutions and the main network.
https://hop.exchange
https://twitter.com/HopProtocol
"A protocol for sending tokens across rollups and their shared layer-1 network in a quick and trustless manner"
APP
https://app.hop.exchange/convert/amm

[Bttzed03]

Good thread. Can you expand more on layer 2 solutions? Adding some newbie guides would be helpful. It seems they need to learn and use it more than ever

Are other chains as good as they claim?

Not that I agree/disagree but the thread would probably be better if you could only focus it on Ethereum and leave other blockchains. There's a good chance this will be derailed because of comparisons.

[ilovealtcoins]

The problem of high GAS prices is now on the Ethereum network because of the strong activity of the NFT exchange following the DEFI wave in the previous months.
Do I have to wait until GAS is low to send out my transactions? Maybe that happens at some point in the day.
How can we fix this problem? I heard Coinbase is upgrading its Ethereum wallet to integrate Polygon technology on-chain. Maybe this will be common in a few months or until next year.

[zasad@]

This is the best article for understanding how commissions are calculated in eip-1559.
A Definitive Guide to Ethereum EIP-1559 Gas Fee Calculations: Base Fee, Priority Fee, Max Fee
https://www.blocknative.com/blog/eip-1559-fees

Many exchanges already support Polygon and other Level 2 solutions. At level 1, nothing will change, as long as there is demand for gas, commissions will be very expensive.

[Adbitco]

The problem of high GAS prices is now on the Ethereum network because of the strong activity of the NFT exchange following the DEFI wave in the previous months.
Do I have to wait until GAS is low to send out my transactions? Maybe that happens at some point in the day.
How can we fix this problem? I heard Coinbase is upgrading its Ethereum wallet to integrate Polygon technology on-chain. Maybe this will be common in a few months or until next year.

It is really sucking unlike the Binance Smart Chain network, i can't be able to wait for the gas price to decrease before making transaction all the way. Most time i don't transfer or move any token under Ethereum rather than using bsc it is very cool and cheap to make transaction.

[crwth]

Since the technology is quite new in a sense compared to other modes of payment, there is still more to do with the current updates especially when it is becoming even more mainstream now. There's no doubt about it and having that kind of opportunity to have L2's that come along with it is not bad as well. We all know the problems that can occur like what OP has included in the post, but still, we are discovering something that is saving our current financial worries.

I'm worried about the Gas fees a lot and checking the Ethereum Average Gas Limit Chart it's at a steady pace of increasing. It's getting harder and harder to use ETH.

[r_victory]

Why Gas Prices are High?

Ethereum is getting more and more popular, more projects use Ethereum blockchain in NFTs, DeFi, Mainnet.
Gas prices are subject to their own markets of supply and demand
more people send transactions, gas prices will increase to reflect that
Average Gas Limit Chart shows the historical increasing gas limit of the Ethereum network. https://etherscan.io/chart/gaslimit

Many are talking about changing or giving preference to Binance Smart Chain, but according to this excerpt of the text, the high Gas fees are caused by the high number of transactions, so in this case, it could also happen that the fees of the BSC network increase, as the number of transactions increase?

[Woodie]

With the countless projects the Ethereum blockchain houses, I really thought the devs had it figured out by now on how best to keep transaction(gas) fees low...I remember crypto kitties also pushed the network which was a hectic experience.

Now we back at it with the high fees because I honestly thought this was history  as Ethereum has had several forks over the years and if I remember it's a few weeks ago a fork was implemented, should be either the London or Berlin fork but why are we experiencing this again.

[danglongbtc]

This protocol transfers funds faster between Layer 2 solutions and the main network.
https://hop.exchange
https://twitter.com/HopProtocol
"A protocol for sending tokens across rollups and their shared layer-1 network in a quick and trustless manner"
APP
https://app.hop.exchange/convert/amm

And what about liquidity? Can it covert or process large volume over cross-chain?
Biconomy hyphen has a sufficient liquidity and provide instant transfer.

[zasad@]

This protocol transfers funds faster between Layer 2 solutions and the main network.
https://hop.exchange
https://twitter.com/HopProtocol
"A protocol for sending tokens across rollups and their shared layer-1 network in a quick and trustless manner"
APP
https://app.hop.exchange/convert/amm

And what about liquidity? Can it covert or process large volume over cross-chain?
Biconomy hyphen has a sufficient liquidity and provide instant transfer.

How much liquidity do you need? This is a level 2 solution that is not used to trade or change small amounts. Several hundred dollars or more. If I trade 5-10 thousand dollars, then I use level 1 and pay 50-150 dollars in commissions.
You need to ask the developers what liquidity is, because these services use their liquidity for quick exchange and earn commissions.