All transactions on the Ethereum network cost gas and “Gas” is the name for a special unit used as a fee that is paid to miners in order to process the transaction.
You would frequently see these terms when setting up gas fee, “Gas limit”, “Gas price” and “Gwei”. You can think of it as the gas we use for a car. For example:
With a car, it’s $2.50 (price) per gallon (unit).
With Ethereum, it’s 10 Gwei (price) per gas (unit).
To fill up your “tank” (gas limit), it takes
- 10 (gallons) x $2.50 = $25
- 21000 (units of gas) x 10 Gwei = 0.00021 ETH.
Therefore, the total transaction fee will be 0.00021 ETH.