Assets, Ethereum

What Is Payable in Ethereum?

In the Ethereum network, nodes that process transactions are rewarded with Ether, the native cryptocurrency of the Ethereum network. The amount of Ether rewarded is proportional to the computational power provided by the node.

Nodes that provide more computational power are rewarded with more Ether.

Ethereum’s native currency, Ether, is used to pay for transaction fees and compute resources on the network. transaction fees are paid to the miners who validate transactions and add them to blocks on the blockchain.

Compute resources are used to run smart contracts and decentralized applications (dapps) on the Ethereum network.

The amount of Ether paid for transaction fees and compute resources is determined by the gas price and gas limit set by the sender of a transaction. The gas price is set in gwei, a fraction of an Ether.

The gas limit is the maximum amount of gas that can be used to execute a transaction or contract.

The total amount of ether paid for a transaction or contract is equal to the gas price multiplied by the gas limit. For example, if the gas price is 1 gwei and the gas limit is 21000, then the total amount of ether paid would be 0.

021 ETH.

When a transaction is included in a block, its corresponding gas fee is added to the miner’s block reward. In this way, miners are incentivized to include transactions in their blocks.

The sender of a transaction can specify any gas price they want, but there is a minimumgasprice parameter set by each node that determines the Lowest gas price a transaction can have before it is rejected by that node. The current minimumgasprice parameter on mainnet is 1 gwei.

If a transaction’s gas price is below the minimumgasprice, then that transaction will not be included in blocks mined by nodes with that minimumgasprice parameter set. As a result, it may take longer for that transaction to be included in a block and confirmed by the network.

The minimumgasprice parameter can be changed by anyone who wants to run an Ethereum node. It is not set by any central authority.

Nodes may choose to change their minimumgasprice parameter in order to ensure that they are able to process transactions quickly and earn rewards for doing so.

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