Understanding Gwei: The Unit Behind BNB Chain’s Low Gas Fees

Gwei
is
a
crucial
unit
for
measuring
gas
fees
on
smart
contract
platforms,
providing
precise
and
standardized
fee
calculations.
According
to
BNB
Chain
Blog,
the
BNB
Chain’s
low
gas
fees
make
it
highly
affordable
for
users
and
developers
alike.

Gwei,
short
for
“gigawei,”
represents
a
billion
wei,
the
smallest
fraction
of
gas
fees
named
after
cryptography
pioneer
Wei
Dai.
Gas
is
essential
in
smart
contract
platforms
as
it
compensates
validators
for
the
computational
resources
they
expend
during
transactions
or
contract
executions.
This
fee
system
rewards
validators
who
maintain
and
secure
the
blockchain,
supplementing
their





block
rewards.

How
Does
Gas
Work?

On
the
BNB
Smart
Chain
(BSC),
an
EVM-compatible
blockchain,
gas
operates
within
the
Ethereum
Virtual
Machine
(EVM).
Whenever
a
transaction
or
smart
contract
is
initiated,
the
EVM
loads
with
the
transaction
data
and
a
specified
amount
of
gas.
As
operations
are
performed,
the
gas
amount
decreases.
If
the
gas
depletes
before
the
transaction
completes,
the
transaction
halts
and
is
considered
invalid,
though
fees
are
still
paid
for
the
computational
efforts
up
to
that
point.

Gas
fees
fluctuate
based
on
network
congestion,
rising
with
high
demand
and
falling
with
low
traffic.
Additionally,
smart
contracts
may
call
other
contracts,
each
loading
a
new
EVM
instance
with
inherited
data.
If
gas
runs
out
during
these
operations,
the
state
reverts
to
before
the
transaction
attempt.

Gas
Limit
vs
Gas
Price
vs
Gas
Fees

Understanding
the
difference
between
gas
limit,
gas
price,
and
gas
fees
is
crucial:

• 
  Gas
  Limit:
  The
  maximum
  amount
  of
  computational
  effort
  allocated
  for
  a
  transaction.
• 
  Gas
  Price:
  The
  fee
  per
  unit
  of
  computational
  effort
  paid
  to
  prioritize
  a
  transaction.
• 
  Gas
  Fee:
  The
  total
  cost
  paid
  for
  executing
  a
  transaction,
  determined
  by
  the
  gas
  used
  and
  the
  gas
  price.

What
is
Gwei?
Why
Do
We
Use
it?

Using
Gwei
offers
several
advantages:

• 
  Precision:
  Gwei
  provides
  a
  more
  precise
  way
  to
  calculate
  and
  represent
  small
  transaction
  fees.
• 
  Simplicity:
  It
  simplifies
  the
  understanding
  and
  communication
  of
  gas
  prices
  among
  users
  and
  developers.
• 
  Standardization:
  Gwei
  has
  become
  the
  standard
  unit
  for
  expressing
  gas
  fees,
  making
  it
  a
  familiar
  and
  convenient
  measure
  within
  the
  crypto
  community.

Other
Denominations

Aside
from
Gwei,
other
denominations
are
used
in
the
Ethereum
ecosystem,
each
named
after
influential
figures
in
cryptography
and
computing:

Gas
In
BNB
Chain

BNB
Chain’s
L1
(BSC)
and
L2
(opBNB)
platforms
are
known
for
their
affordability
due
to
low
gas
fees.

BSC
Gas

BSC
boasts
the
lowest
gas
price
among
L1s,
with
fees
less
than
$0.03.
The
average
gas
fee
is
around
3
Gwei.
BSC
has
increased
its
gas
limit
to
140M
Gwei,
providing
4.6
times
the
gas
carrying
capacity
of
Ethereum.

opBNB
Gas

Gas
fees
on
opBNB
are
almost
negligible.
Previously
set
at
$0.001,
they
have
been
reduced
nearly
tenfold
to
$0.0001.
The
block
carrying
capacity
will
double
from
100
million
gas
per
block
to
200
million
gas
per
block,
enhancing
affordability
and
efficiency.

opBNB
supports


account
abstraction
(AA),
allowing
applications
to
significantly
reduce
gas
costs
associated
with
complex
operations
and
smart
contract
interactions.
This
feature
is
particularly
beneficial
for
applications
requiring
a
large
number
of
microtransactions,
such
as
gaming
and
high-frequency
trading
(HFT)
DeFi
apps.

Conclusion

Gas
fees
are
essential
for
compensating
validators
on
smart
contract
platforms.
Gwei,
a
precise
and
standardized
unit,
is
used
to
measure
these
fees.
Both
BSC
and
opBNB
are
designed
to
be
affordable,
charging
minimal
gas
fees
that
benefit
both
developers
and
users.

Image
source:
Shutterstock