Understanding an Ethereum Transaction: Gas, Blocks and Fees

Gas is one of the most fundamental concepts on Ethereum but it also seems to be one of the most misunderstood. This isn’t surprising because while on the surface the concept is easy to grasp, there are many layers. The goal of this video is to cover essential Ethereum concepts such as gas, blocks and the fee market. We will also piece all of these together in MetaMask to really understand what is going on when you send a transaction.

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[rebelScience]

Awesome video. Thanks. GAS prices these days is insane. Higher than some of my transactions.

[contextmatters]

Yup.
Answered questions I HAD about how all the pieces fit together! 🙂
One outstanding question (for me anyway):
Are the fees substracted from the purchased asset OR is the fees taken from the requestor upfront and the requested amount left intact?
Said another way...
If I want to purchase 1 ETH that has transaction costs of 0.1 ETH (made up numbers of course)
Do I get 0.9 ETH ( 1 - 0.9) ?
OR
Am I paying for the entire 1 ETH + 0.9 ETH?

Thanks

[jdoit]

very nicely done. Thanks for putting in the effort to explain it.

[liamchase]

Finally a video on the Ethereum eco system I could understand.

Now I want to know, how did ETH get into the open market and become an asset for investors to hold?

I’m guessing miners who wanted to convert their ETH to cash, and as the ecosystem of ethereum grows that makes ETH more valuable? But for who? For the actual devs/participants in the eco system or other investors?

[Josiah_Harder]

This was a really helpful video. I wish gas prices were still like this haha

[fufoo]

How does this get around incentivising miners to take transactions which are of lower gas limits? Given they are guaranteed to keep whatever gas is consumed, and have to return gas that isn't consumed -- it would make sense to select transactions with low gas limit as the probability of consuming (thus keeping) the entire gas limit is higher? Considering that each block has a limit to how much gas can be committed

[marwanelkaissi]

Hi I wish you can help. I started to steak Axn I was charged $4.50 and I accepted the charge then I was advised by the Metamask wallet that I do not enough fees which was $23.96. I cancelled the transaction but the 4.50 was gone from the wallet. The charge was approved AXN spend limit. My question is: can I recover the $4.50 since I cancelled the steak?

[kaushikdr]

Thank you!

Just wondering - wouldn't the number of blocks * the average block state size = the increase in state size? (I am guessing state size just means the amount of history to download when you download a client?)

So, technically, increasing the block gas limit is just increasing the state size more quickly?

[optimusmech]

I don't understand why I as a customer would accept to pay higher and higher fees to use an app just because its on the blockchain. Most people don't pay for 99% of the software's they use. Just think about how many apps you pay for. If I as a customer isn't paying for the gas fees, who is? if its the company who is paying it, then where are they getting the money for to do so? I just don't see how a business can sustain with an increasing operational cost. Their profits would have to skyrocket someone just to stay afloat. Can someone explain this please?

[AVKingJamesBible]

How am I getting $180 transaction fees? Am I doing something wrong?

[jeremyanderson]

I love tour video. Can you please help me. I sent over a transaction to my eth wallet with a shib token. I’m had not showed up on my Coinbase account. It’s been 6 hours. Is there a way you can help me. I can share more information with you.

[TylerGraybeal]

Wow, 112 eth is only 25k in this video i swear i question my sanity looking back at crypto prices from years ago. Like where the hell was i

[dhruvbajesaria]

gas was 29 gwei wow... cant see gas below 200 these days