Gas Limit of a Transaction
The maximum amount of gas a user is willing to spend on an Ethereum transaction.
What is Gas Limit of a Transaction?
The gas limit for a transaction on Ethereum specifies the maximum computational effort, measured in gas units, that a user is willing to allocate for executing a transaction or smart contract. It ensures transactions don’t consume excessive network resources. For example, a simple ETH transfer might require 21,000 gas, while complex smart contract interactions need more. If the gas limit is too low, the transaction fails; if too high, unused gas is refunded. Users set this limit in wallets like MetaMask, balancing cost and reliability.
Related Terms
Tokenized Data Assets
Data represented as digital tokens for trading or monetization.
Gas Limit of a Block
The maximum total gas allowed for all transactions included in an Ethereum block.
Circle
The company behind USDC, focused on building transparent and compliant digital asset solutions.
Don't Trust, Verify
"Don't Trust, Verify" is a core principle in blockchain technology, emphasizing that users should independently validate transactions and data on the network rather than relying on intermediaries.
Fixed Income Security
Debt instruments providing regular interest and principal repayment, like bonds.
Convertible Preferred Stock
Preferred stock convertible into common shares, blending dividend income with equity conversion potential.