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What Is a Gas Fee?

By DappAtlas editors ·

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A gas fee is the payment a blockchain network charges to process a transaction, paid in the network’s native token such as ETH. It depends on how much computation the transaction needs and how busy the network is.

Key takeaways

  • Gas measures the work a transaction needs; the fee is gas used times the gas price.
  • On Ethereum, fees have a base fee that is burned plus an optional priority tip (EIP-1559).
  • Gas prices are usually quoted in gwei, a billionth of an ETH.
  • Fees on L2 networks are usually far lower than on Ethereum.

How gas fees work

Every operation in a transaction costs a set amount of gas. You pay gas used × (base fee + priority fee). Since EIP-1559, the base fee is set by the network and burned, and the priority fee goes to the validator.[2]

Why fees change

The base fee rises when blocks are fuller than the target and falls when they are emptier, so fees go up at busy times.[2]

Gas fees vs wallet fees

Gas goes to the network. A wallet’s swap fee, such as MetaMask’s 0.875%, is a separate charge added by the app.

The Bottom Line

Gas fees pay for the network’s work. Check the estimate in your wallet before you confirm, and use an L2 for small transactions.

Educational content, not financial advice.

Pros
  • Prevents spam by making each transaction cost something
Cons
  • Fees spike when the network is busy
  • Failed transactions still pay for the gas they used
Sources (2)
  1. [1] ethereum.org. “Gas and fees.” Accessed Sep 26, 2026.
  2. [2] Ethereum Improvement Proposals. “EIP-1559: Fee market change for ETH 1.0 chain.” Accessed Sep 26, 2026.
Basics

Gas fee FAQ

What is gwei?

Gwei is a unit of ETH: 1 gwei is 0.000000001 ETH. Gas prices are quoted in gwei.

Why did my failed transaction still cost a fee?

The network did the work up to the point of failure, so the gas used is still charged.

How this page works

Sources: ethereum.org, Ethereum Improvement Proposals. Data as of Sep 26, 2026.

How we review

Not affiliated with any project listed. Educational content, not financial advice.