The term “gas limit” refers to the maximum price a user is willing to pay for a transaction or for performing a smart contract function.
Understanding the Term
Gas limit, or gas price limit, refers to the maximum price a crypto user is willing to pay for a transaction or to perform a smart contract function in the Ethereum network. It is calculated in the gas limit and defines the maximum value that a function or transaction can charge from the user. The gas limit is responsible for preventing high fees from being incorrectly charged due to an error in a smart contract.
Gas limit, along with gas prices, is automatically set up by some wallet services. However, users are also able to adjust them manually according to their needs. Normally, a regular Ether (ETH) transaction would be made at a gas limit that is at least 21000.
The operation will occur much faster if both the gas limit and gas price are set to a higher level. On the other hand, a very low gas price and limit would result in transactions taking longer to get confirmed.
The maximum amount of gas that a user is willing to spend on a particular transaction is known as the gas limit. A higher gas limit indicates that one must do more work to execute a transaction using a smart contract or ETH.