What happened to network fees?! Understanding how Ethereum gas works

This article was first published on The AdEx Blog - Medium
-----

Some of the most common questions we’ve been receiving in the first days of 2021 are ”Why is it so expensive to withdraw my earnings?” or “Why does it take $30 to stake $ADX?” or “Why do transactions fail so often?”

There is an Ethereum gas crisis happening at the moment, so we felt it necessary to explain to our community what caused it and what we and you can and can’t do about it. You can easily find plenty of well written technical articles on how Ethereum gas works, but in this one we’ll try to explain it in simple terms and with the least possible amount of complex terminology.

Ethereum and the Virtual machine

As you know, one of the main differences between Ethereum and Bitcoin is that Bitcoin can be used mainly for monetary transactions, while on Ethereum you can add complex conditions to those transactions. You add those conditions in self-executing smart contracts which power all the Ethereum ecosystem dapps, AdEx Network included.

This is an oversimplification but you can think of smart contracts like small computer programs; computer programs need to run in an appropriate environment — a computer. In computing, a virtual machine is an emulation of a computer system. Virtual machines are based on computer architectures and provide functionality of a physical computer.

The Ethereum virtual machine (EVM) is the virtual machine, in which all the smart contracts operate оn Ethereum. It is a simple yet powerful Turing Complete 256-bit virtual machine. Turing Complete means that given the resources and memory, any program executed in the EVM can solve any problem.

Does this sound feasible? Here comes gas.

The EVM and gas

One of the main differences between the Ethereum virtual machine and standard computing environments is that it is decentralized and everything that happens on ...

-----
To keep reading, please go to the original article at:
The AdEx Blog - Medium

Comments (No)

Leave a Reply