Explained | Crypto Gas Wars: What are they and what is the way forward?

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The Ethereum network is known for its extremely high transaction fees. These exuberant charges are often the result of gas wars. While the term might sound like some sort of chemical warfare, it is merely a bidding battle to get your transaction processed ahead of others.Transactions on a blockchain are verified by a network of nodes.

This is the central premise of a blockchain-based structure. However, sometimes due to high volumes of transactions taking place simultaneously, the validators have to prioritise transactions.A gas war is basically an auction system designed to prioritise transactions that are going to be validated in an upcoming block. Users can attach additional priority fees to the base gas fee (transaction fee) to prioritize their transactions.

The higher the priority fee, the higher the chance of your transaction getting processed ahead of others.What are gas fees and priority fees?In the proof-of-work consensus model, validators dedicate vast amounts of computational power to verify transactions, bundle them into a block and add them to the network. Validators are rewarded with tokens as fees from users for processing their transactions. This is the base fee and is often referred to as gas fees.Also read: Whale holdings in Cardano's ADA token hit record high—what it means for the networkSometimes there are several transactions waiting to be processed.