Home / Glossary / Gas Limit

Gas Limit

Gas Limit in the context of cryptocurrency, specifically on the Ethereum blockchain, represents the maximum amount of gas (or energy) a user is willing to expend on a transaction. Gas is a unit that measures the computational effort required to execute blockchain operations, such as transferring tokens or interacting with smart contracts. The Gas Limit, therefore, dictates the upper boundary of this effort for a particular transaction.

Users set the Gas Limit to indicate the maximum amount of computational work they authorize for their transaction. If the Gas Limit is set too low for the required operation, the transaction will fail due to insufficient gas. In contrast, if the Gas Limit is set higher than needed, any unused gas is refunded to the user’s wallet after the transaction is processed.

Typically, simple transactions such as token transfers require a lower Gas Limit, while more complex interactions involving smart contracts need a higher limit due to the increased computational work. The Gas Limit is a crucial parameter because it ensures that the transaction is adequately fueled to complete the required operations without running out of gas, which would result in a failed transaction and the loss of the gas fee.

Determining the appropriate Gas Limit is important; setting it too low can lead to unsuccessful transactions, while setting it excessively high doesn’t yield any benefits as unused gas is returned. Users often rely on their Ethereum wallets, which can automatically suggest a suitable Gas Limit, or they can manually adjust it based on the nature of their transaction and network conditions.

Related Terms

Zero Knowledge Proof

Zero-Knowledge Proof (ZKP): A cryptographic method allowing an entity to prove the truth of a statement without revealing any additional information.

Read More »


Year to Date (YTD) in the realm of cryptocurrency refers to a vital metric that assesses the performance of a digital asset within a specific calendar year, spanning from January 1st to the current date.

Read More »

Yield Farming

Yield Farming is an investment strategy in the realm of decentralized finance (DeFi) where cryptocurrency holders provide their assets to a DeFi protocol to earn returns, often in the form of additional tokens.

Read More »