The ‘GAS’ In Ethereum

If we slightly know the world of Ethereum, it is very possible that the word ‘ Gas ‘ has reached our ears . If, on the other hand, all this is a novelty, it is most likely that for you gas is what Coca-Cola or Fanta carries (and you are right).

Do not worry because here we will explain what it is and what its function is.

To begin with, we will comment that the Ethereum platform works through the so-called ‘Ethereum Virtual Machine’ (EVM). This would be like a big computer on which all Ethereum operations run.

What is gas used for?We call it a ‘big computer’ but in reality it is a multitude of computers connected to each other via the Internet.

This virtual machine has the function of executing programs called ‘intelligent contracts’ and is distributed in each computer that forms the Ethereum network -called nodes-.

These nodes execute these smart contracts in the EVM, but they do not do it for free: an effort is required on the part of these computers, ethereum token creator since they in turn need an electrical consumption and a certain time to carry out this work.

To compensate the miners (nodes) for this temporary, computational and electrical expense, the concept of Gas was created. So…

WHAT IS GAS IN ETHEREUM?

Gas is the cost of performing an operation or a set of operations on the Ethereum network . These operations can be various: from making a transaction to executing a smart contract or creating a decentralized application.

In other simpler words, Gas is the unit to measure the work done on Ethereum.

As in the physical world, in Ethereum there are also jobs that cost more than others: if the operation we want to perform requires a greater use of resources by the nodes that make up the platform, this will cause the Gas to increase as well and vice versa .

Ethereum gas what is prices

For example, if we execute a smart contract with ten different instructions, it will have a higher computational cost -in Gas- than a smart contract with a single instruction.

We can also say that, if an instruction is more complex to carry out than another within a smart contract, that more complex one will require a higher Gas number.

As an aid for us to remember what Gas is, we will say that “GAS” refers to the “ GASto “ of a computational type within Ethereum.

WHAT IS THE FUNCTION OF GAS IN ETHEREUM?

Gas does not have a single utility within the platform. That is also what makes it absolutely perfect for system stability.

Next we will list its functions and explain its utilities within Ethereum:

Assign a cost to the execution of tasks

A similarity could be created between Gas and the use of Kilowatts to measure domestic electricity consumption. In our homes we have many devices that consume a certain amount of electricity every time they are used: the computer, the television, the microwave, etc.ethereum token development

In Ethereum, performing tasks also has a cost. Depending on the difficulty of the task or the speed at which we want that task to be processed, the computational cost of that operation will be higher or lower accordingly and the number of Gas will increase or decrease in proportion.

secure the system

The Ethereum system is a secure system and this is largely made possible by Gas.

By requiring a commission to be paid for each transaction made, the platform ensures that it does not process useless transactions on the network . This helps make the blockchain lighter as it will not add loads of Megabytes of useless information to the blockchain.

Furthermore, with Gas, the system is also protected against ‘spam’ and the infinite use of loops: instructions to carry out repetitive tasks by code.

For example, if the Gas did not exist, nothing would prevent a task from being repeated infinite times, collapsing the system and making it unusable.

Reward to miners

When we carry out a transaction or execute a smart contract, we “pay” a certain amount of Gas.

This Gas is used to “pay” the miners for the resources they have used ( hardware , electricity and time) and also add a reward for their work. Therefore, we could say that the Gas also helps to maintain the balance of the platform.

We talk about “paying” Gas -in quotes- because it is what the operations cost. In other words, you “pay” for the expense that it costs Ethereum to process the transactions.

However, it may lead us to think about the following question:

IS GAS A NEW DIGITAL CURRENCY?

It can lead to confusion, but the answer is clear: no , Gas is not a new digital currency, nor does it serve as a unit of exchange.

moneda digital etherAlthough the Gas is the unit to measure the computational cost of the Ethereum network, there is nothing to indicate ownership, that is, we cannot have 500 Gases or store 350 Gases in a wallet. It only exists inside the Ethereum Virtual Machine to count the amount of work it is doing.

One unit of Gas corresponds to the execution of an instruction, such as a computational step.

So, how do miners “charge” for the Gas they acquire as a reward?

Gas itself is worth nothing, and therefore cannot be charged. In order to “charge” for that used Gas, it is necessary to give value to those resources consumed, that is, to value monetarily the work done by the miners. The amount of Gas used in a transaction or in a smart contract has an equivalent price in Ether.