{"id":560,"date":"2022-06-24T07:36:21","date_gmt":"2022-06-24T07:36:21","guid":{"rendered":"https:\/\/ethereumclassicwallet.com\/articles\/?p=560"},"modified":"2022-06-24T07:36:21","modified_gmt":"2022-06-24T07:36:21","slug":"what-is-ethereum-classic-gas","status":"publish","type":"post","link":"https:\/\/ethereumclassicwallet.com\/articles\/what-is-ethereum-classic-gas","title":{"rendered":"What is Ethereum Classic Gas and Why Ethereum is Switching to PoS"},"content":{"rendered":"<p><span style=\"font-weight: 400\">A commission is charged for transactions in the Ethereum Classic (ETC) blockchain, which is used to pay for the work of the miners. The commission is measured in a special unit called \u201cGas\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gas is a service unit of the Ethereum Classic blockchain, which is used to calculate the cost of transactions. When paying rewards to miners, it is converted into ETC. The cost of gas may vary depending on the current load of the system. Therefore, knowing what gas is, you can significantly reduce the cost of transactions.<\/span><\/p>\n<h2><b>What is Gas in Ethereum Classic<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-563 size-large\" src=\"https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture-1024x574.png\" alt=\"Ethereum classic gas system\" width=\"1024\" height=\"574\" srcset=\"https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture-1024x574.png 1024w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture-300x168.png 300w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture-768x431.png 768w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture-1536x861.png 1536w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture-2048x1148.png 2048w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture-678x381.png 678w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400\">The Ethereum Classic blockchain does not exist only for the functioning of the ETC cryptocurrency. It is designed to deploy decentralized applications. That is, ETC is a native coin that can be used for payments and the internal needs of the system.<\/span><\/p>\n<p><span style=\"font-weight: 400\">From the point of view of software algorithms, Ethereum Classic is a decentralized system consisting of separate blocks. It allows you to conduct transactions without involving a third party (payment system or bank), as well as automate operations using smart contracts. All user actions are validated by nodes. They are maintained by other participants, who are called miners.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Ethereum Classic operates on the Proof of Work protocol. This means that complex calculations on expensive hardware are required to form new blockchain blocks and validate operations. Therefore, miners should be rewarded for their efforts. The rewards are formed, among other things, at the expense of the commission charged to users.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gas is taken as the commission unit. This makes it possible to determine the values of the various tasks performed in the &#8220;block chain&#8221;. For example:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">ETC transfer from user to user;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">balance check;<\/span><\/li>\n<li style=\"font-weight: 400\"><a href=\"https:\/\/en.wikipedia.org\/wiki\/Smart_contract\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">smart contract<\/span><\/a><span style=\"font-weight: 400\"> execution.<\/span><\/li>\n<\/ul>\n<h2><b>Gas\u2019 functions<\/b><\/h2>\n<p><span style=\"font-weight: 400\">The Ethereum Classic blockchain can perform a limited number of tasks at the same time. Gas in this case acts as a mean of overload prevention. That is, a certain amount of gas is spent on certain tasks. If you need to allocate more power to perform additional tasks, you need more gas.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If a user wants his transaction to happen faster, he must be prepared to pay a higher fee. That is, he raises the limit of gas that he is willing to spend. You can do the opposite as well. But if the limit is low, the miners will not validate your operation because the profit is too small for them.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The same functioning system is present in the Ethereum blockchain. But after the transition of the Ethereum blockchain to the protocol of the second version and the Proof of Stake consensus, the validation will take place by the nodes that \u201cblocked\u201d ETH on the wallet. That is, powerful mining farms will not be needed, and validators will be forced to switch to another blockchain. The first contender for miner power is <\/span><a href=\"https:\/\/ethereumclassicwallet.com\/articles\/mining-ethereum-classic\"><span style=\"font-weight: 400\">Ethereum Classic<\/span><\/a><span style=\"font-weight: 400\">. As a result, the price of ETC, according to many analysts, will begin to skyrocket.<\/span><\/p>\n<h2><b>Why Ethereum is switching to PoS<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-561 size-large\" src=\"https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture2-1024x576.jpg\" alt=\"ETH 2.0 and logo\" width=\"1024\" height=\"576\" srcset=\"https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture2-1024x576.jpg 1024w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture2-300x169.jpg 300w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture2-768x432.jpg 768w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture2-1536x864.jpg 1536w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture2-678x381.jpg 678w, https:\/\/ethereumclassicwallet.com\/articles\/wp-content\/uploads\/2022\/06\/etc-gas-intext-picture2.jpg 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400\">For the blockchain, not only the speed is important, but also the stability of the blockchain, as well as the security of the operations carried out in it. Gas significantly reduces the likelihood of an attack on the blockchain due to special features of charging for each action on the platform.<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, Ethereum is now working on protocol of version 1, thus it does not have time to process all transactions (there is not enough computational power provided by miners). To maintain stability, it is necessary to increase the cost of transactions, which makes Ethereum unsuitable for a full replacement for traditional financial instruments. Users will not pay large fees for small transfers.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Therefore, in 2022-2023, there is a phased transition to ETH 2.0, that is, the protocol of the second version. It will solve several problems at once:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Scalability &#8211; as the number of operations increases, the computational power of the network will remain the same. It will use the Proof of Stake consensus and for validation it is enough to have coins in the account.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">High commissions &#8211; due to the increase in the number of validation nodes, commissions can be reduced. Carrying out transactions does not require large hardware capacities.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Low speed &#8211; changing the principle of formation of new blocks will speed up payments and other operations within the blockchain.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Gas is not used exclusively in Ethereum Classic and Ethereum. For example, an additional GAS token functions in the <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/NEO_(cryptocurrency)\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">NEO blockchain<\/span><\/a><span style=\"font-weight: 400\">, which is used when deploying smart contracts and paying rewards to miners.<\/span><\/p>\n<p>https:\/\/youtu.be\/yEyryLSmuRE<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>A commission is charged for transactions in the Ethereum Classic (ETC) blockchain, which is used to pay for the work of the miners. The commission is measured in a special unit called \u201cGas\u201d. Gas is <a class=\"mh-excerpt-more\" href=\"https:\/\/ethereumclassicwallet.com\/articles\/what-is-ethereum-classic-gas\" title=\"What is Ethereum Classic Gas and Why Ethereum is Switching to PoS\">[&#8230;]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,3,2],"tags":[],"class_list":{"0":"post-560","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mining","8":"category-ehereum-classic-news","9":"category-ethereum-classic-reviews"},"_links":{"self":[{"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/posts\/560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/comments?post=560"}],"version-history":[{"count":1,"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/posts\/560\/revisions"}],"predecessor-version":[{"id":564,"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/posts\/560\/revisions\/564"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/media\/562"}],"wp:attachment":[{"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/media?parent=560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/categories?post=560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ethereumclassicwallet.com\/articles\/wp-json\/wp\/v2\/tags?post=560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}