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Updates in gas docs and history docs #12008

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Feb 12, 2024
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Updates in gas docs and history docs #12008

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Updates in gas docs and history docs
Crosstons Jan 24, 2024
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Merge branch 'ethereum:dev' into gas-docs-update
Crosstons Jan 26, 2024
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Merge branch 'ethereum:dev' into gas-docs-update
Crosstons Jan 26, 2024
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Merge branch 'gas-docs-update' of https://github.com/Crosstons/ethere…
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Changes history/docs
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wackerow Feb 12, 2024
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16 changes: 0 additions & 16 deletions public/content/developers/docs/gas/index.md
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Expand Up @@ -119,22 +119,6 @@ The Ethereum [scalability upgrades](/roadmap/) should ultimately address some of

Layer 2 scaling is a primary initiative to greatly improve gas costs, user experience and scalability. [More on layer 2 scaling](/developers/docs/scaling/#layer-2-scaling).

## What was the London Upgrade / EIP-1559? {#what-was-the-london-upgrade-eip-1559}

Before the London Upgrade, Ethereum had fixed-sized blocks. In times of high network demand, these blocks operated at full capacity. As a result, users often had to wait for demand to reduce to get included in a block, which led to a poor user experience. The London Upgrade introduced variable-sized blocks to Ethereum.

The way transaction fees on the Ethereum network were calculated changed with [the London Upgrade](/history/#london) of August 2021. Before the London upgrade, fees were calculated without separating `base` and `priority` fees, as follows:

Let's say Alice had to pay Bob 1 ETH. In the transaction, the gas limit is 21,000 units, and the gas price is 200 gwei.

The total fee would have been: `Gas units (limit) * Gas price per unit` i.e `21,000 * 200 = 4,200,000 gwei` or 0.0042 ETH

The implementation of [EIP-1559](https://eips.ethereum.org/EIPS/eip-1559) in the London Upgrade made the transaction fee mechanism more complex, but made gas fees more predictable, resulting in a more efficient transaction fee market. Users can submit transactions with a `maxFeePerGas` corresponding to how much they are willing to pay for the transaction to be executed, knowing that they will not pay more than the market price for gas (`baseFeePerGas`), and get any extra, minus their tip, refunded.

This video explains EIP-1559 and the benefits it brings:

<YouTube id="MGemhK9t44Q" />

## Monitoring gas fees {#moitoring-gas-fees}

If you want to monitor gas prices, so you can send your ETH for less, you can use many different tools such as:
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14 changes: 14 additions & 0 deletions public/content/history/index.md
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Expand Up @@ -172,6 +172,20 @@ Altair was the first major network upgrade that had an exact rollout time. Every

The London upgrade introduced [EIP-1559](https://eips.ethereum.org/EIPS/eip-1559), which reformed the transaction fee market, along with changes to how gas refunds are handled and the [Ice Age](/glossary/#ice-age) schedule.

#### What was the London Upgrade / EIP-1559? {#eip-1559}

Before the London Upgrade, Ethereum had fixed-sized blocks. In times of high network demand, these blocks operated at full capacity. As a result, users often had to wait for demand to reduce to get included in a block, which led to a poor user experience. The London Upgrade introduced variable-sized blocks to Ethereum.

The way transaction fees on the Ethereum network were calculated changed with [the London Upgrade](/history/#london) of August 2021. Before the London upgrade, fees were calculated without separating `base` and `priority` fees, as follows:

Let's say Alice had to pay Bob 1 ETH. In the transaction, the gas limit is 21,000 units, and the gas price is 200 gwei.

The total fee would have been: `Gas units (limit) * Gas price per unit` i.e `21,000 * 200 = 4,200,000 gwei` or 0.0042 ETH

The implementation of [EIP-1559](https://eips.ethereum.org/EIPS/eip-1559) in the London Upgrade made the transaction fee mechanism more complex, but made gas fees more predictable, resulting in a more efficient transaction fee market. Users can submit transactions with a `maxFeePerGas` corresponding to how much they are willing to pay for the transaction to be executed, knowing that they will not pay more than the market price for gas (`baseFeePerGas`), and get any extra, minus their tip, refunded.

This video explains EIP-1559 and the benefits it brings: [EIP-1559 Explained](https://www.youtube.com/watch?v=MGemhK9t44Q)

- [Are you a dapp developer? Be sure to upgrade your libraries and tooling.](https://github.com/ethereum/execution-specs/blob/master/network-upgrades/london-ecosystem-readiness.md)
- [Read the Ethereum Foundation announcement](https://blog.ethereum.org/2021/07/15/london-mainnet-announcement/)
- [Read the Ethereum Cat Herder's explainer](https://medium.com/ethereum-cat-herders/london-upgrade-overview-8eccb0041b41)
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