diff --git a/Gas_and_Fees_Esther Friday b/Gas_and_Fees_Esther Friday new file mode 100644 index 0000000..d857b11 --- /dev/null +++ b/Gas_and_Fees_Esther Friday @@ -0,0 +1,3 @@ +What is Gas? Describe its purpose in Ethereum transactions. : Gas refers to the measuring unit used to determine the amount of computation necessary to perform operations or transactions on the Ethereum blockchain. Transactions or smart contract function on the Ethereum network needs a specific quantity of gas to be carried out. Thus Gas is utilized to distribute resources including processing speed, storage space, and bandwidth. By putting a price on resource usage, gas serves the objective of preventing malicious or ineffective code from overloading the network. +EIP-1559: Explain how it reformed gas fees (base fee, priority fee, burning mechanism): the implementation of EIP-1559 was a major step in redefining how transaction fees work on the Ethereum network, aiming to improve user experience and network efficiency. EIP-1559 replaces the previous Ethereum first-price auction system for fees, which often led to users overpaying with an authomatically set base fee that fluctuates based on network activity, alongside an optional tip for miners​​ This mechanism creates more predictable and fair gas pricing. +Slippage: Define it and how it relates to gas prices (e.g., in swaps or high-demand blocks). Slippage occurs when there is a difference between the price you expected to pay for a transaction and the price you actually end up paying. This is can occur when token prices fluctuate rapidly when there is high level volatility,this can result in transactions failing or costing more than expected.