Chapter 10: Ethereum: How Transaction Costs are Calculated

by Bruno Škvorc

This article on Ethereum Transaction Costs was originally published at Bruno’s Bitfalls website, and is reproduced here with permission.

When sending a Bitcoin transaction, its fee is proportionate to its size. The more inputs and outputs, the more expensive it is. Add to that the factor of pending transactions, and transaction fees can skyrocket based on those two factors alone.

With Ethereum, given that we’re talking about a programming language within the protocol, it’s possible to be very computationally demanding with very little text or code (something which would be very cheap in the BTC-verse). Let’s look at this loop, for example:

while (i++ < 1000) { j = j + ...

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