Gas (network fees)
Gas is the fee paid to the network for every transaction on Ethereum and similar networks; it rises when many people want to send at once.
Explained simply
Every transaction costs the network's computers computing effort. The sender pays a fee for that in the network's currency. On Ethereum it is called "gas" because it is consumed like fuel.
The amount depends on two things: how demanding the transaction is (a simple transfer is cheap, a complex smart contract expensive) and how busy the network is right now. In a rush, prices rise as in an auction.
From the familiar world
A motorway toll with dynamic pricing: at rush hour the trip costs more, at night almost nothing. The fee keeps the road from clogging and pays the operators.
An example
In periods of high demand a simple Ethereum transaction at times cost over 50 US dollars. On layer-2 networks the same transaction is usually under one cent.
Why it matters
Fees are the practical reason layer-2 networks emerged, and the reason demand for ether is not purely speculative: anyone using the network needs the currency.
To pass on
„Gas is the toll on the blockchain motorway: expensive at rush hour, cheap at night.“
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