Are you new to the cryptocurrency world and feeling a bit lost? Don't worry, you are not alone. The cryptocurrency space can be daunting for newcomers, with its many terms, abbreviations and definitions that can be difficult to understand.
ATAIX crypto glossary will help make sense of some of the most common cryptocurrency terms and definitions. Armed with this information, you'll be ready to start participating in this exciting and innovative new economy!
Gas is a unit of measurement used to determine the amount of computational effort required to execute a particular action on the Ethereum blockchain. In other words, gas is what allows the decentralized Ethereum network to function smoothly by incentivizing users to contribute their computing power to verifying and processing transactions.
When a user wants to perform a transaction on the Ethereum network, they must first specify how much gas they are willing to spend. The more gas a user is ready to spend, the faster their transaction will be processed. However, if a user does not have enough gas to cover the cost of their desired transaction, their transaction will be rejected by the network.
The gas price is constantly changing and is determined by the amount of demand for processing power on the network at any given time. Gas prices are usually expressed in Gwei, which is a unit of ETH (Ethereum's native cryptocurrency).
One important thing to note about gas is that it is not a currency and cannot be traded or exchanged for anything else. Instead, gas is simply a way to ensure that users contribute their fair share to the Ethereum network. In this way, gas allows the Ethereum network to function as a decentralized and self-regulating ecosystem.