Ethereum Gas Fees Quiz

1. What is gas in the context of Ethereum?

• Gas is a type of cryptocurrency used for trading on exchanges.
• Gas refers to the storage capacity of an Ethereum wallet.
• Gas is the fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform.
• Gas is the temperature control for Ethereum miners.

2. How are gas fees priced?

• Gas fees are priced in tiny fractions of the cryptocurrency ether (ETH) called gwei.
• Gas fees are based on the current price of Bitcoin (BTC).
• Gas fees are fixed rates set by the Ethereum Foundation.
• Gas fees are determined solely by the transaction history of the sender.

3. What is the purpose of gas fees?

• Gas fees are used to create new cryptocurrencies.
• Gas fees are used to buy tokens on exchanges.
• Gas fees are used to pay validators for the resources needed to conduct transactions.
• Gas fees are used to store data on the blockchain.

4. How is the exact price of gas determined?

• The exact price of gas is determined by government regulations only.
• The exact price of gas is determined by the daily average price of oil.
• The exact price of gas is determined by the number of users online.
• The exact price of gas is determined by supply, demand, and network capacity at the time of the transaction.

5. What are the key takeaways about gas fees on Ethereum?

• Gas fees on Ethereum are fixed and do not change based on demand or network conditions.
• Gas fees are only applicable to trading cryptocurrencies on Ethereum, not for contract execution.
• On the Ethereum blockchain, gas refers to the cost necessary to perform a transaction on the network. Gas prices are based on supply and demand for the network`s validation requests. Transaction prices are based on the gas limit and gas price.
• Gas prices are determined solely by the Ethereum foundation without any market influence.

6. How do gas fees work before the London upgrade?

• Gas fees were calculated based on a flat rate set by miners.
• Gas fees were calculated as: Gas fee = Gas units (limit) * Gas price per unit.
• Gas fees were determined solely by the total number of transactions.
• Gas fees were a fixed amount regardless of usage.

7. How do gas fees work after the London upgrade?

• Gas fees are calculated using the formula: Gas fee = Gas units (limit) * (base fee + priority fee).
• Gas fees are calculated using the formula: Gas fee = Gas units (limit) * Gas price per unit.
• Gas fees are fixed and do not vary based on network conditions.
• Gas fees are primarily influenced by the total amount of ether in circulation.

8. What is the base fee in gas fee calculation after the London upgrade?

• A set fee for transactions
• A variable fee paid to miners
• A fluctuating fee based on demand
• A flat fee for network maintenance

9. What is the priority fee in gas fee calculation after the London upgrade?

• The priority fee is an extra charge for failed transactions.
• The priority fee is a tip to the validator that chooses a transaction.
• The priority fee is a mandatory charge for all transactions.
• The priority fee is a fixed fee set by the network.

10. How does the priority fee affect transaction processing time?

• The priority fee makes transactions more attractive for validators to process quickly.
• The priority fee decreases the transaction processing speed significantly.
• The priority fee only applies to high-value transactions and ignores others.
• The priority fee has no impact on the transaction speed at all.

11. What happens if you set your gas limit too low?

• You will receive a refund for the unused gas limit.
• Your transaction will process as normal with no issues.
• Your transaction may fail, and you`ll lose the fee.
• Your transaction will complete but be delayed significantly.

12. What happens if you set your gas limit too high?

• You will lose all your gwei and the transaction will fail.
• Your transaction will be prioritized and processed immediately.
• If you set your gas limit too high, you will receive a refund for the excess gwei.
• You will have to wait longer for your transaction to complete.

13. How do you minimize Ethereum gas fees?

• You can minimize Ethereum gas fees by using a specific cryptocurrency wallet.
• You can minimize Ethereum gas fees by increasing your transaction speed.
• You can minimize Ethereum gas fees by transacting during low-traffic times.
• You can minimize Ethereum gas fees by setting a higher gas price.

14. What is lazy minting in the context of NFTs?

• Lazy minting refers to the annihilation of NFTs after transactions.
• Lazy minting means automatic resale of NFTs without creator fees.
• Lazy minting is a method to permanently lock NFTs from being changed.
• Lazy minting allows NFT creators to delay costs until the NFT is sold.

15. When are gas fees generally cheaper?

• Gas fees are generally cheaper during weekdays.
• Gas fees are generally cheaper on weekends and nights.
• Gas fees are generally cheaper on holidays.
• Gas fees are generally cheaper in the morning.

16. How do wallets like MetaMask help in managing gas fees?

• Wallets ignore the network conditions when processing transactions.
• Wallets like MetaMask charge a flat fee for all transactions.
• Wallets automatically select gas prices for users without options.
• Wallets like MetaMask allow users to set transaction speeds to manage fees.

17. What is the relationship between gas costs and the blockchain used?

• Gas costs relate to the blockchain`s consensus mechanism.
• Gas costs are determined solely by user experience.
• Gas costs remain constant regardless of blockchain.
• Gas costs have no impact on transaction speed.

18. How are gas fees calculated on Hedera?

• Gas fees on Hedera are calculated using a single flat rate for all transactions.
• Gas fees on Hedera are based solely on the amount of tokens transferred.
• Gas fees on Hedera are fixed and do not change.
• Gas fees on Hedera are calculated by adding intrinsic gas, EVM operation gas, and Hedera service gas.

19. Why are Ethereum gas fees higher than those on other blockchains?

• Ethereum uses a single blockchain without any additional layers.
• Ethereum transactions are always processed at the same speed regardless of demand.
• Ethereum operates on a fixed transaction fee structure for all users.
• Ethereum has a complex network that supports diverse applications.

20. What is the formula to calculate gas fees on Ethereum?

• Gas fee = Gas units (limit) / (base fee + priority fee)
• Gas fee = Gas units (limit) * Gas price
• Gas fee = Gas units (limit) + base fee + priority fee
• Gas fee = Gas units (limit) * (base fee + priority fee)

21. What is the default gas limit for simple Ethereum transactions?

• 30,000
• 21,000
• 15,000
• 50,000

22. How do you calculate the gas fee for a transaction?

• To calculate the gas fee, divide the gas limit by the gas price and then convert the result to ETH.
• To calculate the gas fee, add the gas limit and the gas price and then convert the result to ETH.
• To calculate the gas fee, multiply the gas limit by the gas price and then convert the result to ETH.
• To calculate the gas fee, subtract the gas limit from the gas price and then convert the result to ETH.

23. What happens if you don`t pay enough in gas for a transaction?

• The gas fee will be automatically refunded.
• The user will be charged an additional fee for the delay.
• The transaction will be completed without any issues.
• The transaction may not be processed promptly and successfully.

24. How do layer 2 solutions affect gas fees?

• Layer 2 solutions can help reduce gas fees by taking transactions off the main chain.
• Layer 2 solutions increase gas fees by adding more transactions to the main chain.
• Layer 2 solutions have no effect on gas fees during high network activity.
• Layer 2 solutions make gas fees more unpredictable and complex.

25. What is the effect of network congestion on gas fees?

• Network congestion has no effect on gas fees regardless of transaction volume.
• Network congestion eliminates gas fees entirely during peak times.
• Network congestion decreases gas fees due to fewer transactions being processed.
• Network congestion increases gas fees because there are more transactions to validate.

26. How do you estimate a reasonable gas limit?

• You can only set gas limits based on personal experience.
• You can estimate a reasonable gas limit by looking at the current or weekly gas price averages.
• You must pay the maximum fee to set any gas limit.
• You estimate it by selecting the highest fee available.

27. What is the role of validators in the Ethereum network?

• Validators store user data and maintain personal wallets on the network.
• Validators perform essential tasks such as verifying and processing transactions on the Ethereum network.
• Validators only create smart contracts and do not handle transactions.
• Validators mine new Ethereum blocks and govern changes in the network.

28. How do validators get rewarded in the Ethereum network?

• Validators earn rewards through transaction fees paid by users directly.
• Validators are rewarded with a portion of the gas fee for their work in maintaining and securing the blockchain.
• Validators receive a fixed bonus payment regardless of their activities.
• Validators are rewarded with new Ethereum coins minted for each block.

29. What is the difference between proof-of-work and proof-of-stake in terms of gas fees?

• Proof-of-work and proof-of-stake have the same gas fees.
• Proof-of-stake has no impact on gas fees at all.
• Proof-of-work has lower gas fees due to system efficiency.
• Proof-of-work has higher gas fees due to mining requirements.

30. How has the switch from proof-of-work to proof-of-stake affected gas fees on Ethereum?

• The switch from proof-of-work to proof-of-stake has led to a gradual decrease in gas fees over time.
• The switch from proof-of-work to proof-of-stake has no effect on gas fees at all.
• The switch from proof-of-work to proof-of-stake has made gas fees completely free.
• The switch from proof-of-work to proof-of-stake has caused gas fees to triple instantly.