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
Ether (ETH)
Ether(ETH) is the native digital asset of the Ethereum blockchain, used to pay for transaction fees and computational services.
Decentralized Lending
Decentralized lending is a blockchain-based system allowing users to lend or borrow digital assets without intermediaries, using smart contracts to automate and secure transactions.
Margin Call (Lending)
A notification to borrowers to add collateral or repay part of a loan to restore a safe LTV ratio.
Slot in Ethereum
A 12-second time interval in a proof-of-stake blockchain where a validator can propose a new block of Ethereum, which may remain empty if no block is proposed.
Nonce of Ethereum Account
A unique transaction counter associated with an Ethereum account to ensure each transaction is processed only once, preventing replay attacks.
Liquidation
The process in DeFi where assets from an under-collateralized loan are sold to repay the borrowed amount, typically triggered automatically by smart contracts when collateral value falls below a required threshold.