#TransactionFees

Check the destination asset, route, costs and completion conditions before moving funds across networks. Matching token names alone is insufficient.

A lower balance does not prove the recipient was credited. Check the transaction ID, network status and receiving platform requirements before sending again.

Gas measures the computational resources required to execute an Ethereum transaction, with fees paid in ETH. A simple transfer and a complex contract operation can consume different amounts of gas. Network demand also changes the price of the same operation. Transaction cost therefore depends on resource use and unit price, rather than only on the amount being transferred.

The source explains the calculation as gas used multiplied by the sum of the base fee and priority fee. The protocol burns the base fee; the priority fee goes to the validator proposing the transaction’s block. Wallets typically show an estimate, and gwei is a common small denomination of ETH. The article also introduces L2 networks as a way to reduce costs for some activities.

Ethereum layer-2 networks aim to handle more activity outside the mainnet while using its settlement or data capabilities. Rollups, for example, execute transactions on another layer and submit relevant data or results to Ethereum, spreading costs across multiple operations. This helps explain why L2 networks can offer lower fees.

L2 is not a single product: networks differ in technology, smart contracts and maturity. The source notes that networks claiming to scale Ethereum do not necessarily use the same security model, and there is no single official L2.