The gas fees is a big problem in the Ethereum Network.  Why you have to pay gas fees on Ethereum? It is really expensive, it is almost comical about the complaints that exist about it already. Well, it is important to pay the gas fees, because the gas secures the blockchain.

Anytime you want to send a transaction or interact with a smart contract and you want to pay a fee, you want to pay the gas fee. And, when you get spam on the network, and basically it is important to pay the gas fee to keep all the unwanted stuff out of the network and it is used to pay the fees to the miners on Ethereum 1.0, who help secure the chain and the exchange. And, now we are going to Ethereum 2.0.

So, the gas fee or the transaction fee that you see wherever you go confirm your transaction, it is effected by two things.  So, the gas price and also the price of the Ethereum. 

Considering a situation where it is important to send ETH from one account to another that transaction will always cost you 21,000 units of gas – that is the gas cost, that is not the Ethereum cost or the Ether cost.  Gas is an abstract unit. Always it has to be paid no matter what happens to the price of ETH or what happens to the network.

So, how to determine the transaction fees is effected by two other things, the gas price can be looked at the gas station.  So, the gas price is like 175 and you multiply that by the actual gas cost itself to get the amount of Ether that you have to pay for the transaction.

So, when you take that one step further, and you multiply this by the price of Ether to get the actual dollar amount that you pay or whenever you are seeing this transaction around. So, the gas price is always the same, but the fluctuations in Ethereum price is leading to the fluctuations in gas price and also the Ether price, which is causing a lot of frustration. So, you can get your transactions calculated at the gas stations and how much the transactions will cost at the different level.

When thinking counter intuitively, the transactional cost is actually reflective of demand.  So, people want to buy Ether, that making the Ethereum price go up when lot of people are using the network, the gas prices go up in the first place.