In short, the computing power required for the Ethereum Blockchain to process transactions costs a small fee. Gas fees are a way to compensate the miners who provide this computing power. They are expressed in Gwei (a smaller denomination of Ether). The Gas Fee is composed of three components:
- The Gas Limit: Represents the amount of gas needed for the given transaction;
- The base fee: a stable fee that increases depending on the amount of pending transactions the network;
- The priority fee: a fee that is directly sent to the miners. Priority fees predict when your transaction is processed. Transactions with higher priority fees are processed before the ones with lower priority fees.