Lately, I've seen wildly varying transaction costs when using Ethereum Wallet. How is the fee range computed?
The Mist wallet will be connecting to a local Ethereum protocol implementation, commonly Geth. Mist connects to Geth via
Web3.js and transaction fees are relayed back to your Mist wallet depending on how you client implementation calculated it.
Mist would be using the estimateGas API to help with its calculations:
And we know that transaction fees are calculated as:
Total gas cost = estimatedGas * gasPrice;
Basically, Mist would be executing something similar to this:
var transactionFee = web3.eth.gasPrice * web3.eth.estimateGas(transactionObject);
Finally, you're probably seeing these fluctuations in transaction costs because of the wide range of gas prices on the network set by miners on the network. Right now, it costs very little to get your transaction mined, see here.
If the miners decrease their
gasPrice to include more transactions then they'll see an increase in orphan rate. The cost of getting orphaned is denominated in ETH, so the gas price miners are willing to accept should go up as the ETH price does.
Hope this helps.
The ethereum transaction fee depends on two parameters.
The formula for calculation is
gascost is a variable parameter like real gas (petrol and diesel), The price fluctuates on the network traffic.
Example: when ETH network is light then even 7 Gwei can make your transaction successful but on some day when the network is congested then even 10 Gwei will fail to get your transaction confirmed.
Here is the ETH Gas Station
The default gas price was 20 Gwei (20 * 10^9 ETH), But you can use lower amount also.