hinata

account

Magazine

Official

What is the NFT gas fee? Introducing 3 ways to save money, when it occurs and soars

Official | 2022.12.09

Text by Hinata official

  • Information

You want to trade NFT, but are you in trouble because you hear that “gas prices are high”?

In the first place, there may be some people who do not know “what is the gas bill”.

In this article, after sorting out what gas costs are, we will explain in an easy -to-understand manner how to save gas costs and how to get NFT without gas costs.

1. What is the NFT gas fee?

The NFT gas fee is the fee for using the Ethereum blockchain .

In NFT transactions, the transaction history is basically recorded on the Ethereum blockchain. The work (mining) of approving whether a transaction has been performed successfully and recording it on the blockchain is handled by people called miners.
The reward paid to the miner is called the gas fee.

What is gas bill?Usage fees on the Ethereum blockchain
Main timing of gas charges・Transmit and receive Ethereum (ETH)
・Buy and sell Ethereum NFT
・Issue Ethereum NFT
Reason why gas bill is necessaryUsed as a reward for miners

(1) Timing of gas charges

Basically, the gas fee will occur at the time when a record is added to the Ethereum blockchain .

In other words, the gas fee will be charged at times other than those listed in the table above.

  • When NFT is airdropped (sent to someone)
  • When converting ETH to WETH
  • When to bridge Ethereum (ETH) to Polygon (MATIC)
  • When making an offer or canceling it
  • When listing an Ethereum NFT at the first auction

When you come into contact with NFT, you will face the above situations, but please understand that gas costs will be incurred for all of these.

(2) Reasons why you need to pay for gas

The gas fee is required as a reward for miners who process transactions (details of transactions) and program processing generated by ETH and Ethereum NFT transactions.

The gas fee is determined by “Gas Limit (workload) x Gas Price (unit price per 1 Gas)” .

  • Gas Limit → The unit is Gas. Minimum 21,000 Gas required
  • Gas Price → The unit is Gwei. 1Gwai=0.000000001ETH

The gas price can be determined by the person requesting the transaction (seller or purchaser), but miners preferentially process transactions with high gas prices, so if you want to complete the transaction quickly, set the gas price should be set slightly higher.

2. NFT gas prices are soaring

NFT gas prices are skyrocketing now . In fact, looking at the highest value of Gwei for each year in the graph (below) showing the transition of gas price from June 2020 on the ” Ethereum Gas Price Chart “,

Quote: https://livdir.com/ethgaspricechart/ja/
  • About 600 Gwei around September 2020
  • Approximately 1,000 Gwei around February 2021
  • About 2,000 Gwei around September 2021
  • Approximately 3,000 Gwei around April 2022

It can be seen that gas prices are increasing year by year.

The reason why NFT gas prices are soaring is the expansion of the NFT market . In 2020, the transaction volume of the entire NFT market was approximately 9.7 billion yen. In 2021, it will grow to exceed approximately 4 trillion yen, and transactions are becoming active.

As the number of users and transaction volume using the Ethereum network increases, the miners’ approval process naturally becomes crowded.

However, the approval work performed by miners requires a high-spec PC and a huge amount of power, and the more the number of processing cases, the greater the burden on miners. As a result, gas prices will inevitably rise.

In fact, the soaring around September 2020 was caused by the expansion of the DeFi market, and the soaring from around February 2021 was caused by the expansion of the NFT market, and the market has been pushed up until now.

As a result, most people predict that gas prices will continue to rise in the future .

On the other hand, Ethereum is planning a major update in 2022, and some predict that if the update goes as planned, gas prices will be significantly lower than before. However, there is also a view that gas prices will fluctuate depending on the market price of the cryptocurrency ETH, so it is not possible to predict what will actually happen .

3. How to save NFT gas bill

The price of gas is not affected by the price of NFTs purchased. Gas prices are determined by whether or not the market is busy at that time .

The Ethereum Gas Price Chart is useful for checking current gas prices.

As of April 20, 2022, the market price of gas is moving between 25 and 100 Gwei. The actual gas cost at the time of transaction is around 1,000 to 3,000 yen in Japanese yen.

Although it seems to have calmed down compared to a short period of time, it wouldn’t be strange if the gas bill suddenly increased to more than 10,000 yen (for example, when a popular NFT artist’s work is exhibited, collectors from all over the world are attracted to it). It is common to see a temporary surge in gas prices due to the simultaneous purchase of NFTs.)

Even if you think that the gas bill is 1,000 yen and you try to purchase a 300 yen NFT, if the gas bill suddenly rises to 10,000 yen, the payment amount will be 10,300 yen instead of 1,300 yen.

With this, some people may not be able to easily purchase NFTs. So next, I will tell you how to save gas and buy NFT easily.

(1) Trade on days and times when gas prices are low

Since the gas price is the market price, it rises when the transaction is active.

Therefore, there is a tendency for the timing of gas prices to become cheaper.

Quote: https://ethereumprice.org/gas/

The table above shows gas charges by day of the week and time zone. The darker the color, the higher the gas price.

Using this as a reference, you can see that gas prices are cheaper on Friday afternoons and during the daytime on Saturdays and Sundays .

Depending on the time of day and the day of the week, there will be a considerable difference in gas prices, so be sure to be aware of this if you want to save money on gas.

(2) Slow down processing speed

When trading NFTs, you can choose from three levels of transaction speed: “High”, “Medium”, and “Low”. If you choose the slow “Low” instead of the fast “High”, you can save gas costs. It is an image of whether to use a general road or a highway.

However, even if the transaction is completed in less than 10 minutes if it is “High”, it may take more than an hour if it is “Low”, so you need to be careful there.

(3) Trade in a way that does not incur gas costs in the first place

Among those who trade NFTs, most of the trading is done on the Ethereum network of “Opensea”, the world’s largest NFT marketplace, and they think that “NFT trading requires a gas fee”. tend to be

However, in fact, there is also a method that does not cost gas.

For example, Opensea can use the Polygon network in addition to the Ethereum network, but transactions on the Polygon network do not incur gas costs.

There is also an NFT Marketplace where gas is free . FUWARI Co., Ltd.’s “HINATA” is one of them.

Different marketplaces handle different types of NFTs, and the characteristics of the marketplace are clearly visible. If you want to enjoy NFT widely, try using various marketplaces.

4. HINATA is the place to buy and sell NFTs

NFTs are now compatible with SNS icons, and NFTs will become more popular as web fashion items in the future.

Under such circumstances, if you are purchasing NFT for the first time, we recommend using “HINATA”, a domestic NFT marketplace.

“HINATA” has developed a system where creators and fans can enjoy each other through their works, and you can fully enjoy the charm of NFT.

“HINATA” solves all the barriers to entry for beginners when purchasing NFTs.

  • free gas
  • Supports payment in legal currency (Japanese Yen)
  • No need to prepare a cryptocurrency account or wallet.
  • Trading is possible just by registering as a free member to “HINATA”.

First of all, feel free to use “HINATA” and enjoy NFT!

If you want to know more about “HINATA”, please read the article below.

Recommended

  • How to Get “HINATA” Campaign NFT.

    Campaign

    2022.01.11

  • How does the artwork of Anastasia Vasilyeva come into being?

    Campaign

    2022.12.27

  • [High-profile NFT Trading Card] Thorough explanation of features, trading methods, and future prospects!

    Campaign

    2022.12.09

  • What is a governance token? Explain the features and mechanisms using case studies!

    Campaign

    2022.12.12