Gas Cap

Definition ∞ A gas cap sets an upper limit on the amount of gas a user is willing to spend for a transaction on a blockchain. This user-defined parameter specifies the maximum computational units a transaction can consume, preventing excessive costs due to complex operations or network congestion. When the transaction’s actual gas consumption exceeds this cap, the transaction fails, but the sender still pays for the consumed gas. It acts as a protective measure against unforeseen fee spikes and resource exhaustion.
Context ∞ The gas cap is a practical consideration for users interacting with smart contracts and sending transactions on networks like Ethereum. Discussions often focus on optimizing gas caps to ensure transactions are processed without overpaying or failing due to insufficient limits. Network upgrades, such as EIP-1559, have introduced mechanisms like base fees and priority fees, altering how users manage their gas caps and transaction costs.