What is Ethereum Gas?

To run your car, you need fuel. To run an application on Ethereum you need gas. The gas mechanism makes Ethereum extremely efficient at allocating scarce resources on the network.

Everything on the Ethereum network costs a little bit of gas including transactions. Gas on Ethereum has a market price determined by demand for resources on the network. The amount of gas you need depends on how large of a contract you are trying to execute, and how fast you want it executed. If you are willing to wait longer, you can pay less gas. If you want your contract or transaction executed faster, you pay more gas.

Many functional tokens today have taken efficiency ideas from the Ethereum gas market and applied them to problems in other industries. Many believe the future lies in this kind of very efficient use of decentralized resources, which benefits all participants.