Ethereum

Token

Solana

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 <img loading="lazy" loading="lazy" decoding="async" width="300" height="200" src="https://droomdroom.com/wp-content/uploads/2024/08/gas-fee-300x200.jpg" class="attachment-medium size-medium wp-post-image" alt="gas fee" style="margin-bottom: 10px;" title="Why Only Native Tokens are used for Gas Fee? Top 3 Reasons 12">
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<p>Native tokens have always been the only token by which you can pay transaction costs, i.e., <a href="https://droomdroom.com/how-are-gas-fees-calculated-on-ethereum/" data-type="post" data-id="27378" target="_blank" rel="noreferrer noopener">gas fees</a> on a blockchain. However, this also limits the users since, for every transaction, a user has to arrange some additional native tokens just to pay a gas fee.</p> 
<p>Still, blockchains do not allow gas fee payments in non-native tokens because they might compromise a blockchain’s security and disrupt its validation mechanism.</p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p><a href="https://droomdroom.com/gasless-transactions-explained/" target="_blank" rel="noreferrer noopener">Some platforms even let you use blockchains without paying a gas fee.</a></p> 
</blockquote> 
<h2 class="wp-block-heading" id="strong-native-vs-non-native-tokens-strong"><strong>Native vs Non-Native Tokens</strong></h2> 
<p>A native token was created with the creation of the blockchain, and a non-native token was either minted or bridged to the blockchain much after the native token.</p> 
<p>For example, Ether(ETH) is a native token of the Ethereum blockchain, while USDT is a non-native token. Similarly, SOL is a native token of the Solana blockchain, and BONK is a non-native token.</p> 
<p>Here is an easy way to edit the gas fee in MetaMask if you think it is unreasonably high.&nbsp;</p> 
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Gas fee too high? <br><br>Edit in metamask sers <a href="https://t.co/UAGVGhaVcR" rel="nofollow" target="_blank">pic.twitter.com/UAGVGhaVcR</a></p>— OxTøchi 
   <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f987.png" alt="🦇" class="wp-smiley" style="height: 1em; max-height: 1em;">
   <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f508.png" alt="🔈" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@OxTochi) <a href="https://twitter.com/OxTochi/status/1821586657398935688?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">August 8, 2024</a>
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<h2 class="wp-block-heading" id="strong-explaining-how-gas-is-consumed-in-a-blockchain-strong"><strong>Explaining How Gas is Consumed in a Blockchain</strong></h2> 
<p>The role of gas is to act as a form of compensation to validators who are verifying blockchain transactions. This makes gas&nbsp;</p> 
<p>When a transaction is initiated, the validators need to add it to the blockchain. This <a href="https://ethereum.org/en/developers/docs/consensus-mechanisms/" target="_blank" rel="noreferrer noopener nofollow">work</a> is calculated in terms of the amount of gas needed to complete the task. Once the task is finished, any excess gas is returned to the address that sent the transaction.</p> 
<p>The amount of gas to be consumed is never fixed and has been kept as a floating value to avoid network blockage. Hence, even if two transactions are sent one after the other, they will incur different gas fees.</p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p><a href="https://droomdroom.com/economics-behind-high-and-low-gas-fee-in-ethereum/" target="_blank" rel="noreferrer noopener">Gas fees vary in a blockchain due to their demand and supply.</a></p> 
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<h2 class="wp-block-heading" id="strong-why-non-native-tokens-aren-t-used-for-gas-strong"><strong>Why Non-Native Tokens Aren’t Used for Gas?</strong></h2> 
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 <img loading="lazy" loading="lazy" decoding="async" width="1024" height="683" src="https://droomdroom.com/wp-content/uploads/2023/12/ethereum-value-1024x683.jpeg" alt="Ethereum value" class="wp-image-22985" title="Why Only Native Tokens are used for Gas Fee? Top 3 Reasons 13">
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<p>Public blockchains like <a href="https://droomdroom.com/is-ethereum-a-better-investment-than-bitcoin/" target="_blank" data-type="post" data-id="12377" rel="noreferrer noopener">Ethereum</a> have millions of users, and each one might prefer a different crypto to pay the gas fee if allowed. This would not only cause extremely unpredictable revenues for validators but also a lack of standardisation. Plus, with extremely volatile tokens, there remains a wide chance for undue manipulation.</p> 
<h3 class="wp-block-heading" id="1-strong-need-for-universally-acceptable-gas-token-strong">1. <strong>Need for Universally Acceptable Gas Token</strong></h3> 
<p>The usage of a single token for gas helps users predict their transaction costs and also helps validators estimate their earnings.&nbsp;</p> 
<p>If multiple tokens are allowed to pay gas fees, each user might have their own preference for tokens. This would create unnecessary confusion among the users.</p> 
<p>Further, since each token has a floating value (changes in price), it could be impossible to estimate gas fees and validator earnings accurately. Without estimated earnings, a validator would never be able to decide if they can get a profit on their investments.</p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p><a href="https://droomdroom.com/top-factors-determining-gas-fee-in-a-blockchain/" target="_blank" rel="noreferrer noopener">Do you know the factors determining gas fees in a blockchain?</a></p> 
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<h3 class="wp-block-heading" id="2-strong-native-token-s-role-in-blockchain-security-strong">2. <strong>Native Token’s Role in Blockchain Security&nbsp;</strong></h3> 
<p>The native gas token provides a high degree of security for a blockchain. Using non-native tokens would greatly compromise that security. Let us explain this with an example.</p> 
<p>For example, say Ethereum accepts a new token called XYZ for the gas fee. Since miners would be paid with this token, they would have to validate transactions with XYZ for a fee.</p> 
<p>Now, imagine if someone manipulates the price of this XYZ token, and such manipulations are very common in the world of crypto. An inflated XYZ value, even for a short period of time, would help an attacker validate all their transactions with a very small fee, and as a result, the whole Ethereum network could get compromised.&nbsp;</p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p><a href="https://droomdroom.com/top-centralized-exchange-hacks/" target="_blank" rel="noreferrer noopener">Here are a few lessons to learn from hacks on blockchain security.</a></p> 
</blockquote> 
<h3 class="wp-block-heading" id="3-strong-keeping-native-token-s-hegemony-strong">3. <strong>Keeping Native Token’s Hegemony</strong></h3> 
<p>Besides the need for security and ease of usage, no blockchain would want the native token of their chain to fall into obscurity.&nbsp;</p> 
<p>If any blockchain lets users pay fees in non-native tokens, they have a risk of letting stablecoins ruin their native tokens, such as ETH.</p> 
<h2 class="wp-block-heading" id="strong-conclusion-strong"><strong>Conclusion</strong></h2> 
<p>Gas fees are the most vital payments that keep a <a href="https://droomdroom.com/web-stories/understanding-monolithic-blockchain/" target="_blank" data-type="web-story" data-id="27208" rel="noreferrer noopener">blockchain</a> functioning. They help validators be compensated for their work and encourage users to transact on the blockchain.</p> 
<p>Though it would be preferable for users to be able to use all tokens to pay for gas fees, that is not preferable from a security and standardisation point of view. Using highly volatile tokens could compromise the blockchain. Further, using a lot of tokens for gas fees would also create confusion and extra work for validators.</p> 
<p>Hence, all blockchains only allow users to pay gas fees in native tokens.</p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p><a href="https://droomdroom.com/the-largest-cryto-scams-in-history/" target="_blank" rel="noreferrer noopener">Staying safe in crypto is much easier than you think. Here are a few lessons to get you started.</a></p> 
</blockquote>

Why Only Native Tokens are used for Gas Fee? Top 3 Reasons

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