In the context of cryptocurrencies, a gas limit refers to the maximum amount of computational work that can be performed by a block on a blockchain network, usually measured in units of gas.
Gas limit is primarily associated with the Ethereum network, which uses a smart contract-based platform that allows for the creation of decentralized applications (dApps) and the execution of smart contracts. Each transaction on the Ethereum network requires a specific amount of gas, which is determined by the computational resources required to execute the transaction.
The gas limit is set by the miners or validators who are responsible for processing transactions and creating blocks. The gas limit helps to prevent denial-of-service (DoS) attacks on the network by limiting the amount of computational resources that can be used in a single transaction or block.
When a transaction is submitted to the network, the sender specifies the gas price they are willing to pay and the gas limit they are willing to consume. If the gas limit is too low to execute the transaction, it will fail and the sender will lose the gas fee they paid to the miners.
Setting the appropriate gas limit is important for ensuring that transactions are executed successfully and efficiently on the network. If the gas limit is set too low, the transaction may fail or be stuck in a pending state, while a gas limit that is too high can result in wasted computational resources and increased transaction costs.