What is Gas War?
Let's find out Gas War meaning, definition in crypto, what is Gas War, and all other detailed facts.
To understand what is a crypto gas war, you should first understand what gas is. Essentially, gas is like a fuel that is needed for the validation of blockchain transactions, hence the name. The term was initially crafted by Ethereum, while many other blockchains simply use the term "transaction fees." However, some blockchains like BSC or Polygon use the term "gas" as well.
Gas fees are paid to those who validate transactions on the blockchain in question, whether they be PoW miners or PoS validator nodes. Each blockchain predetermines a minimal gas fee that you have to pay. Yet, a trader who wants to push their transaction to be validated faster than those of other traders can pay validators a "tip," which will be added to the minimal gas fee.
And this is exactly how a gas war begins, when traders start increasing their gas fees. However, a gas war is unlikely to break out over regular payments. It is more likely, for instance, when a brand-new crypto asset or non-fungible token (NFT) is put up for sale. Those who lose the gas war are unable to purchase the NFT at that specific price.
The gas war, however, affects more people than just those looking to purchase assets in a specific sale. Everyone using the network to complete transactions at that time must pay higher gas fees or wait to finish their transaction later.
A notable gas war happened when Yuga Labs opened the sale of Otherdeed NFTs in May 2022. The collection of 55,000 NFTs was sold out right after its launch, generating over $319 million, as gas fees fluctuated from 2.6 ETH to 5 ETH ($6,500-$14,000). For reference, Ethereum gas fees usually go from $2 to $5 worth of ETH.