Gas Fee, Structure and Calculation.

The crypto users who are in touch with Ethereum Blockchain knows the amount deduction on each transaction as fee is gas fee. Actually Gas is a unit used to know the energy spent by system to perform a particular transaction.
According to Ethereum papers Gas fee is compulsory to teckle the spammed traffic of transactions on Blockchain. Only in/out or vice versa transactions with tiny amounts and illogical purposes will be eliminated the infinite quantity of transactions on network. It stops people from unnecessary transfers and network remains available for real reasons.

The Gas fee mostly different in each transaction according to amount/ node/block and time scheduled by user. The Gas fee has two basic types,

• Base fee.
• Priority fee.

Base fee.
Base fee is set by protocol for system upgrading, validator's tip and burning process. The Gas fee is mandatory in each transaction set by the protocols. The base fee includes burning amount which used for transaction, tip to validator and treasure to keep funds for core team with maintenance charges.

Priority fee.
The priority fee always set by sender on base of time in which he wants to execute the transaction. There are three slabs in Ethereum transaction time Frame.
Standard : can take 2 minutes to 30 minutes
Fast: 1 minutue to 5 minutes
Rapid: instant to 1 minute.

So if user will select fast or rapid option for transaction, he will pay little extra fee which will be called the priority fee.

Gas fee calculation.
To understand the trigonometry of fee calculation I will add here an example. If I want to send 2.0 ETH to any other user , An amount of 2.0000505 ETH will be deducted from my wallet and end user will receive exactly 2 ETH ( In normal type of fee). The validator will get 85000 gwei ( smallest unit of Eth like SATs in bitcoin) or 0.0000085 ETH. 43000 gwie will be for burning process and remaining will go to network treasurer for maintenance and upgrade of network.

Even High gas fee but why still users like Ethereum?

Mostly the Gas fee structure base on current block in which transaction going to perform and on previous block integration. Ethereum is on of the most busy Blockchain with high transactional volume by different projects. High gas fees in Ethereum can be attributed to several factors. First, the network is currently experiencing a high volume of transactions which causes congestion and results in higher fees. Second,the Ethereum Improvement Proposals (EIPs) have increased the base fee rate to incentivize miners to include more transactions in each block. This has led to an increase in gas fees over time.

Despite these high fees many users continue to prefer Ethereum due to its security, decentralization, and smart contract functionality. Ethereum also has a large developer community and ecosystem which supports the creation of various dApps and DLT solutions. Also the upcoming transition to Proof-of-Stake (PoS) consensus algorithm is expected to reduce gas fees and improve scalability.

Although the Gas fee discourage the users when they saw Bitcoin Cash and Solana performing much cheaper, more faster transactions. Solana especially triggering the utility factor rapidly and it's Blockchain enability making things possible for users to complete their transactions in blink eye time.
But yet due to smartest DeFi ecosystem it is first choice with lot of solutions.

That's all for today, like upvote and leave comments for feedback.

Cheers,
Amjad
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