On the Ethereum network, the concept of gas was introduced to keep a separate value layer that only indicates computational expenses. Assigning this value to a particular unit allows for distinction between cryptocurrency (ETH) actual value and the computational cost of using Ethereum’s virtual machine (EVM) (EVM). “Gas here refers to Ethereum network transaction fees, not car gas.
Users pay gas fees to offset the cost of processing and validating transactions on the Ethereum blockchain. It’s the maximum amount of gas (or energy) you’re willing to spend on a transaction. A higher gas limit means more work to execute an ETH or smart contract transaction.
Moving X dollars from your bank account to your friend’s credit card account may cost you Y dollars in processing fees. In both cases, X represents the utility value, and Y represents the car trip or financial transaction cost.
Similarly, a contract or transaction on Ethereum may be worth 50 ETH (X), but the gas price to process it may be 1/100,000 ETH (Y).
Ethereum miners are responsible for verifying and processing network transactions, are compensated with this fee. Miners can ignore gas price limits. As a result, the gas price fluctuates with the processing power supply and demand.
RoboFi (www.robofi.io) is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the $VICS token.