The term gas limit refers to the maximum price a cryptocurrency user is willing to pay when sending a transaction, or performing a smart contract function, in the Ethereum blockchain. Let's take a closer look.
What is Gas Limit?
The gas limit refers to the maximum amount of gas a user can consume to conduct a transaction.
Transactions involving smart contracts are more complicated and require more computational power to execute. Therefore, these transactions require a higher gas limit than less complex ones like transferring funds.
Setting a gas limit that is too high is OK because the EVM will refund any unused gas. However, if the gas limit is set too low, the user can lose some ETH and have their transaction declined.
For instance, if a user sets a 50,000 Ether gas limit for a transfer of ETH, the EVM would use 21,000 and return the remaining 29,000. However, if the gas limit were set at 20,000 and the transaction needed 21,000 units, the EVM could use 20,000 gas units in an attempt to finish the transaction, but it would fail.
In this case, the user would keep the ETH they attempted to send, but they would lose their 20,000 gas units because the EVM used them up trying to finish the failed transaction.
What is the Purpose of Gas Limit?
The amount of gas that each transaction is willing to spend on the block determines how quickly pending transactions across the ETH network will be processed. Every transaction is processed by the Ethereum Virtual Machine, which charges a small number of gas fees to do so. There is a gas limit for each block. Designated users must keep in mind that the gas limit for each block cannot be exceeded when building a block. Thus, every transaction's gas limit has to be carefully decided.
What is Gas Limit? What is the Purpose of Gas Limit? - hopefully, this article can help you to get some knowledge.
