How does gas calculation work in the context of digital currencies?

1 answers

• Mariama MohammadJun 17, 2021 · 4 years ago
  In the context of digital currencies, gas calculation is a critical component that determines the cost and execution of transactions. Gas represents the computational work required to process a transaction or smart contract. When you send a transaction, you specify the gas limit, which is the maximum amount of gas you're willing to consume. The gas price, on the other hand, determines the fee you pay for each unit of gas. The total transaction fee is calculated by multiplying the gas limit by the gas price. This system ensures that users pay for the resources they consume and prevents network abuse. Gas calculation also incentivizes developers to write efficient code, as higher gas consumption translates to higher fees. By optimizing gas usage, digital currency networks can maintain scalability and improve overall network performance.
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