> For the complete documentation index, see [llms.txt](https://docs.bitfoot.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitfoot.com/new-to-crypto/gas-and-fees-explained/ethereum-gas.md).

# Ethereum Gas

On Ethereum, **gas** is the fee paid to process transactions and execute smart contracts on the network. Just like fuel in a car, gas powers the Ethereum network by providing incentives for validators (the computers processing transactions) to keep everything running smoothly.

Here’s how gas works on Ethereum:

1. **Gas Units and Gas Price**
   * **Gas Units**: Every action on Ethereum (like sending ETH or interacting with a smart contract) requires a certain amount of “gas units.” More complex actions, like using dApps or running smart contracts, need more gas units.
   * **Gas Price**: This is the amount you’re willing to pay per gas unit. It’s measured in **gwei**, a small unit of ETH. The higher the gas price you set, the faster your transaction will likely be processed.
2. **Gas Limit**\
   The **gas limit** is the maximum amount of gas units you’re willing to spend on a transaction. Some wallets automatically set a reasonable gas limit based on the transaction type, but users can also adjust it manually if needed.
3. **Why Gas Fees Fluctuate**\
   Ethereum gas fees aren’t fixed—they change based on network activity. When many people are using Ethereum at the same time, fees go up because more people are competing to get their transactions processed. During quieter times, gas fees tend to be lower.
4. **Saving on Gas**
   * **Time Your Transactions**: Gas fees can vary throughout the day. By checking gas trackers or scheduling transactions during off-peak hours, you can potentially save on fees.
   * **Layer 2 Solutions**: Some users move to “Layer 2” networks, like Base or Arbitrum, which are built on top of Ethereum but offer much lower fees for similar transactions.

***

Ethereum gas is essential for keeping the network running but can add costs to transactions, especially during busy times. Up next, we’ll cover **Solana Network Fees** and how they differ from Ethereum’s gas fees.


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