Blockchain technology powers the decentralized future — but to keep it running smoothly, there's a crucial cost involved: gas. Whether you're swapping tokens, transferring funds, or interacting with smart contracts, understanding gas fees is essential for navigating the Web3 ecosystem efficiently and affordably.
This guide breaks down what gas is, why it exists, how it's priced, and what you can do to minimize costs — all while maintaining full control over your digital assets.
What Is Gas?
Gas is the fundamental unit of computational effort required to execute operations on an Ethereum Virtual Machine (EVM)-compatible blockchain. Think of it like fuel for a car: just as a vehicle needs gasoline to move, blockchains require gas to process and validate transactions.
Each action on a blockchain — from sending cryptocurrency to executing complex DeFi trades — consumes a specific amount of gas. This fee compensates miners or validators for the computing power, electricity, and time they invest in securing the network and confirming transactions.
👉 Discover how blockchain transactions work without overpaying in fees.
Important Note: Platforms like 1inch Network do not collect any portion of gas fees. These fees go entirely to the blockchain’s validators or miners. Additionally, gas costs for swaps in classic mode are non-refundable.
Why Does Gas Exist?
Blockchains are decentralized systems — no single entity controls them. Instead, independent participants (miners in Proof-of-Work chains, validators in Proof-of-Stake) maintain the network by verifying transactions and adding new blocks.
This process demands real-world resources:
- Proof-of-Work (PoW) networks (e.g., early Ethereum) require powerful hardware and massive electricity consumption.
- Proof-of-Stake (PoS) networks (e.g., Ethereum post-upgrade, Avalanche, Polygon) require validators to stake their own crypto as collateral, locking up capital at risk.
Gas fees incentivize these participants to act honestly and efficiently. Without this economic model, there would be no reliable way to secure the network or prevent spam attacks.
How Is Gas Paid?
Gas fees are always paid in the native token of the blockchain where the transaction occurs. For example:
- On Ethereum, you pay in ETH
- On BNB Chain, you use BNB
- On Polygon, it's MATIC
The 1inch Network supports over a dozen EVM-compatible chains, each with its own native asset. Before making any transaction — especially token swaps — ensure your wallet holds enough of the correct native token to cover gas.
If you're swapping USDC for DAI on Ethereum but have no ETH in your wallet, the transaction will fail. No workaround exists: only native tokens can pay for gas.
How Is Gas Priced?
Gas prices are measured in Gwei, a fractional unit of ETH:
1 Gwei = 0.000000001 ETH (one-billionth)
The total cost of a transaction is calculated as:
Total Cost = Gas Used × Gas Price (in Gwei)For example:
- Gas used: 100,000 units
- Gas price: 15 Gwei
→ Total = 1,500,000 Gwei = 0.0015 ETH
Gas prices fluctuate based on network congestion. During high demand (like NFT mints or major market movements), prices spike dramatically.
You can check real-time Ethereum gas rates via tools like Etherscan — but most wallets now display estimated fees automatically.
Why Can’t I Use My Swap Tokens to Pay for Gas?
You might wonder: If I'm already spending tokens in a swap, why can’t part of that be used to cover gas?
The answer lies in how blockchain validation works.
Validators only accept payment in the network’s native currency because:
- They run infrastructure denominated in that asset.
- They face real costs (electricity, staked capital) tied directly to the chain.
- Accepting random tokens would introduce price volatility and settlement risks.
Moreover, gas usage depends on computational complexity, not trade size. A simple transfer uses ~21,000 gas; a multi-hop swap through DeFi protocols may use hundreds of thousands. Since exact gas needs aren't known until execution, platforms like 1inch provide an estimated fee to help users prepare.
As Ethereum's popularity grew, so did its gas fees — sometimes exceeding $50 per transaction. This led to the rise of low-cost alternatives like BNB Chain and Polygon, which offer faster speeds and lower fees without sacrificing security.
👉 Compare low-fee blockchains and optimize your next trade.
What Is the Gas Limit?
The gas limit is the maximum amount of gas you're willing to spend on a transaction. It acts as a safety cap:
- If your transaction needs 100,000 gas and you set a limit of 120,000, only 100,000 is used — the rest is refunded.
- But if you set a limit below what's required (e.g., 90,000), the transaction fails — and you still pay for the computation used.
For context:
- Standard ETH transfer: ~21,000 gas
- Token swap or smart contract interaction: 100,000+ gas
Most wallets auto-detect appropriate limits. However, advanced tools like the 1inch iOS Wallet allow manual customization for experienced users seeking fine-tuned control.
Think of it this way:
"Setting a gas limit is like deciding how much fuel to put in your tank before a trip — too little, and you’ll stall halfway."
How Did EIP-1559 Change Gas Fees?
Ethereum’s London Hard Fork (EIP-1559) revolutionized how gas fees work.
Before EIP-1559:
- Users bid on gas prices in an auction-style system.
- Unpredictable spikes made fee estimation difficult.
After EIP-1559:
- A base fee is dynamically adjusted per block based on demand.
- Users add an optional priority fee (a "tip") to speed up inclusion.
- The base fee is burned (removed from circulation), reducing inflation.
- Total fee = Base Fee + Priority Fee
In modern interfaces like 1inch Wallet, you’ll see:
- Max Fee: Your upper limit
- Max Priority Fee: The tip to validators
- Any unused difference between max and actual fees is refunded
This system brings more predictability and fairness to gas pricing — though peak times can still drive costs up.
How Can I Reduce My Swap Gas Costs?
High gas fees don’t have to be a barrier. Consider these strategies:
✅ Use Layer 2 Networks or Alternative Blockchains
Chains like Polygon, Arbitrum, and BNB Chain offer near-instant transactions at fractions of Ethereum’s cost.
✅ Time Your Transactions
Gas prices often drop during off-peak hours (e.g., late at night UTC). Monitor trends using public dashboards.
✅ Use Aggregators Like 1inch
By splitting trades across multiple liquidity sources, 1inch minimizes slippage and optimizes routes — indirectly lowering effective gas costs per outcome.
✅ Batch Transactions When Possible
Combine actions (e.g., approvals + swaps) when supported, reducing overall interactions.
👉 Start saving on transaction costs with smarter trading routes.
Frequently Asked Questions
Q: Does 1inch charge gas fees?
No. 1inch does not receive any part of the gas fee. All gas payments go directly to blockchain validators or miners.
Q: Can I get a refund if my transaction fails?
No. If a transaction runs out of gas or fails due to low limits, the computational work has already been done — so gas is consumed regardless.
Q: Why are Ethereum gas fees so high compared to other chains?
Ethereum has the largest developer community and highest security budget — but also immense demand. This congestion drives up prices during peak usage.
Q: Is there a way to estimate gas before sending a transaction?
Yes. Most DeFi platforms, including 1inch, show an estimated gas cost before confirmation. Always review this before signing.
Q: Can I use stablecoins to pay for gas?
No. Only native tokens (like ETH, BNB, MATIC) are accepted for gas payments across all major blockchains.
Q: What happens if I don’t have enough native tokens for gas?
Your transaction will fail immediately. Always keep a small balance of the network’s native token in your wallet when interacting with DeFi apps.
By understanding how gas works, you gain better control over your crypto experience — avoiding failed transactions, reducing costs, and maximizing efficiency in every interaction.