Definition ∞ A priority gas auction is a mechanism on certain blockchains, primarily Ethereum, where users bid higher transaction fees (gas prices) to incentivize validators to include their transactions in an upcoming block sooner. This competition for block space ensures that transactions with higher fees are processed with greater urgency. It is a direct result of limited block capacity. This influences transaction ordering.
Context ∞ Priority gas auctions often intensify during periods of high network congestion, leading to significantly increased transaction costs for users. News articles frequently report on rising gas fees during peak network activity, prompting discussions about network scalability solutions and alternative fee models to improve user experience and reduce transaction burden.
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