Network fees (gas), L1 and L2: which network to choose for a deal
What gas is and why fees differ on Ethereum, Base, Polygon and BNB Chain. How L1 and L2 work, what the fee consists of and how to pick a network.
In this article
Every record on a blockchain takes space in a block, and space is limited. You have to pay for it - that is the network fee, or gas. It goes not to the platform you work on but to the validators who process your transaction.
What gas is
Gas is a unit of computational work. A plain coin transfer "costs" 21,000 units of gas. A token transfer is usually two or three times more, and a complex contract call more still. The more steps a transaction executes, the more gas it uses.
The total fee equals amount of gas × gas price. Gas price is measured in gwei - billionths of an ETH. It changes every second, depending on how many people want to send a transaction right now.
What the price consists of after EIP-1559
Since 2021 Ethereum uses a two-part model:
- The base fee - automatically adjusts to network load and is burned. It is not validator income but a mechanism that stops prices from spiking chaotically.
- The priority fee (tip) - a voluntary extra to the validator. The higher it is, the faster the transaction is included.
Wallets pick these values automatically: you are offered "slow", "standard" or "fast".
Why fees vary
Load changes. When a popular project launches or the market storms, far more people want to send a transaction than there are free slots, and the gas price rises. At night and on weekends the network is usually freer.
But the main reason for the difference between networks is architecture.
L1 and L2: what is the difference
L1 (layer one) is the network itself, responsible for security, recording everything directly. Ethereum and BNB Chain are L1.
L2 (layer two) is a layer on top of L1. It executes transactions itself, quickly and cheaply, and then sends compressed data about the results to Ethereum. L2 security leans on Ethereum's security. Base is an L2 built on optimistic rollup technology.
A useful analogy: L1 is the main bank where every operation is written by hand and costs a lot. L2 is a cashier's desk that takes many payments, groups them and periodically sends one summary report to the bank. The cost of the report is shared among all the payments.
The service's four networks
| Network | Type | Native coin | Typical fee | When to choose |
|---|---|---|---|---|
| Ethereum | L1 | ETH | high (noticeable dollars) | large amounts, maximum independence and security |
| Base | L2 on Ethereum | ETH | very low | everyday deals of any size |
| Polygon | separate network (PoS) | POL | very low | small and frequent deals |
| BNB Chain | L1 | BNB | low | users of the Binance ecosystem |
We give no exact figures - they change every day. A guideline: on Base, Polygon and BNB Chain an ordinary operation costs cents or less, while on Ethereum it can easily cost several dollars or more under high load.
How many operations in a deal
You will pay more than once. A typical deal includes:
- Creating the offer - one transaction.
- A token approval (for USDT, USDC, DAI) - another one if there is none yet. Not needed in the native currency.
- Accepting the offer - the other side's transaction.
- Confirming receipt or another closing action.
Each pays the fee for their own operations. Keep a reserve in the network's main coin - see the quick start.
Two coins in your wallet
A common beginner mistake: the wallet has USDT but no ETH - and nothing can be signed. The deal money and gas are different things: the deal is paid in any supported currency, while gas is always in the network's main coin (ETH, POL or BNB). About tokens - the article on stablecoins.
What to read next
To understand why some networks are cheaper, read about Layer 2 and rollups, and then how to choose a network. To find out how the gas price is formed, see the EIP-1559 fee market. The next step on the path is the anatomy of a transaction.
Keep reading
- 3 · Under the hood
EIP-1559 - how the Ethereum fee market works (base fee, tips and burning)
How fees work after the London upgrade - the base fee, the priority tip, maxFeePerGas, automatic 12.5% adjustment and ETH burning. With calculations and examples.
4 min read - 2 · Practice
Layer 2 and rollups - how Ethereum became cheaper and faster
Why second-layer networks exist, how optimistic and ZK rollups work, what a sequencer and withdrawal are, and how an L2 like Base differs from the main network.
4 min read
Mentioned in
- What is cryptocurrency and where do coins come from
- Stablecoins: USDT, USDC, DAI - how they differ and what the risks are
- Where escrow is used - 10 real-life scenarios with examples
- Glossary - blockchain, wallets, smart contracts and escrow from A to Z
- Layer 2 and rollups - how Ethereum became cheaper and faster
- Anatomy of a transaction: nonce, gas, mempool and confirmations
- ENS - readable names instead of long Ethereum addresses
- Coin-Trust fees by example - how much you pay and to whom
- Ethereum accounts and state - EOAs, contracts and the world state
- A tour of the Solidity language - types, functions, errors and events by example
- Storage layout and variable packing in Solidity
- Gas optimization in Solidity - 12 techniques and when they apply
- EIP-1559 - how the Ethereum fee market works (base fee, tips and burning)
Ready to try it?
Create your first deal in a couple of minutes. The money is locked in a smart contract and paid out by rules you can see in advance.