Purpose of Ethereum Gas system - Deepstash

Purpose of Ethereum Gas system

Incentivization. Like any proof-of-work peer-to-peer system, Ethereum is heavily dependent on the computational power of its miners. More miners, more computational power, more secure and fast the system.

To attract more miners Ether needs to make the system as profitable and alluring as possible for the miners. In Ethereum, there are two ways that miners can earn money:

  • By mining blocks and getting block rewards.
  • By running smart contracts. The gas system allows them to charge a certain fee for doing so.

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vladimir

Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.

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