What is the difference between gas limit and gas price in the world of cryptocurrency?

1 answers

• Dec 26, 2021 · 3 years ago
  Gas limit and gas price are two fundamental concepts in the world of cryptocurrency, and they play a significant role in determining transaction fees and network efficiency. Gas limit refers to the maximum amount of computational work that can be performed in a transaction. It acts as a safeguard against infinite loops and other resource-intensive operations. On the other hand, gas price represents the amount of cryptocurrency that the sender is willing to pay for each unit of gas consumed. It determines the priority of a transaction and influences how quickly it gets included in a block. Miners are incentivized to prioritize transactions with higher gas prices, as it allows them to earn more rewards. Balancing the gas limit and gas price is crucial for optimizing transaction costs and ensuring timely execution. Different cryptocurrencies and blockchain networks may have different mechanisms for setting gas limits and gas prices, so it's essential to familiarize yourself with the specific rules and dynamics of the network you are using.
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