Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Priced in small fractions of the cryptocurrency ether (ETH), commonly referred to as gwei and sometimes also called nanoeth, the gas is used to allocate resources of the Ethereum virtual machine (EVM) so that decentralized applications such as smart contracts can self-execute in a secured but decentralized fashion.
The exact price of the gas is determined by supply and demand between the network’s miners, who can decline to process a transaction if the gas price does not meet their threshold, and users of the network who seek processing power.
Gas fees are paid in Ethereum’s native currency, ether (ETH).
Gas prices are denoted in Gwei, which itself is a denomination of ETH – each Gwei is equal to 0.000000001 ETH (10-9 ETH).
For example, instead of saying that your gas costs 0.000000001 Ether, you can say your gas costs 1 Gwei. The Bitcoin equivalent is known as a Satoshi!
Notes: Average gas price per day