Ether and gas

Ether (ETH) is the main token of the Ethereum blockchain and acts as the primary “fuel” that powers all activity on it. “Gas” refers to an amount of ether that’s needed to perform a certain function on the network, such as: Sending transactions (swapping, trading or moving Ethereum-based tokens around) Interacting with decentralized applications Creating smart contracts Minting non-fungible tokens, or NFTs How much gas you pay for each action on the Ethereum blockchain is calculated based on two things: Gas cost: The computational energy an operation on Ethereum requires to be processed and executed on the network. This is denominated in units of gas. Gas price: The rate set by the user for converting gas into units of ether. These units are usually denominated in “gwei,” which is a unit of Ethereum equivalent to 0.000000001 ether. Cost of an operation on Ethereum = gas cost x gas price