FixedFloat Blog

Our news, cryptocurrencies guides and tutorials

Why is Ethereum required to send a ERC-20 tokens?

In the Ethereum blockchain, you cannot send tokens without having Ethereum on the wallet

This is because you have to pay a commission for each transaction. The unit of payment is ETH. Execution of transactions requires certain computational resources, which are measured in GAS. Each transaction, depending on its complexity, consumes a different amount of GAS. The final commission depends on how much GAS the transaction spent multiplied by the price you charged when you sent the transaction.

An analogy can be made that GAS is fuel and operation is a car. You need a small amount of fuel to travel to the store. But for a trip to a neighboring city, much more. If you don't fill the car with fuel, then you won't be able to go anywhere.

Can a token be used as a payment for GAS?

You can't. Since Ethereum tokens are digital coins created on the basis of the ETH blockchain, but differing in a simplified infrastructure and limited functionality. A token cannot be atomically converted to Ethereum without a transaction. To work with tokens, the wallet must have ETH.

How much Ethereum does it take to send a token?

It is very difficult to calculate the exact amount of ETH to send a transaction. During periods of high load, it can change significantly. Each token can have a different transaction value. Therefore, it is better that the amount of ETH on the wallet is slightly higher than the average commission on the network at the moment. The average commission can be estimated using the Blockchair analytical service.