Blockchain Developer Certification Practice

What is the purpose of the gas limit in Ethereum transactions?

1. To define the minimum gas required for a transaction

2. To set the maximum units of gas willing to be used for a transaction

3. To cover the transaction fees

4. To provide a constant gas price

The correct answer is: To set the maximum units of gas willing to be used for a transaction

The purpose of the gas limit in Ethereum transactions is indeed to set the maximum units of gas that a user is willing to spend for the transaction to be processed. This limit serves as a safety mechanism to prevent unexpected costs from infinite loops or overly complex computations in smart contracts. If the gas limit is reached before the transaction is completed, the transaction will fail, but the gas used up to that point is still consumed. When a user initiates a transaction, they specify a gas limit according to their estimation of how much computational work their transaction will require. This prevents the possibility of the transaction consuming more gas than the user is prepared to pay for, ensuring that users maintain control over their expenses in the network's fee market. In contrast to the other options, defining minimum gas or providing a constant gas price does not accurately represent the function of the gas limit. Covering transaction fees is also related to the total gas used multiplied by the gas price but does not specifically encapsulate the role of the gas limit itself. The gas limit exclusively pertains to the cap on how much gas is utilized, thereby safeguarding users from runaway costs during execution.