If you have been to an auction sale, you will agree with the saying “The heaviest pocket bags the deal”. What is an auction sale or trade? It is a trade that involves various buyers bidding for a commodity at a price higher than the former until no one is willing to offer more. In an auction trade, a product is sold to a client willing to pay the highest price. You may be wondering about the link between an auction trade and cryptocurrency, an auction trade is the best description for crypto gas wars. With the increasing demand and supply occurring within the cryptocurrency network, it is considered a goldmine. However, the issue of gas wars can be an irk.

First, it is important to understand the gas fee and where it is often used. As we know gas is a fuel that powers a vehicle, the same way gas fees power up transactions in the cryptocurrency world. This fee is a transaction fee related to completing transactions on the blockchain. Most of the time, the rate of gas fees could be unstable due to network congestion. For example, when many vehicles are on the road at a particular time, it can lead to traffic congestion. In the same way, when lots of transactions are going on at the same time, the network becomes congested. This is so because a certain number of transactions can be carried out at a time on the Ethereum blockchain network, and once the lined-up transactions exceed these limits, the network becomes clogged.

Ultimately, as more people are coming on board, the network becomes more congested, and this is where gas wars come in. This occurrence is more likely to happen when the demand exceeds the supply chain in the blockchain system.