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solana-and-the-rise-of-high-performance-chains
Blog

Why 'Gas' is an Outdated Metaphor for Blockchain Resources

Ethereum's 'gas' bundles computation, state, and bandwidth into one opaque fee. High-performance chains like Solana disaggregate and price these resources independently, creating a more efficient, predictable, and scalable transaction fee market. This is the core architectural shift enabling 100k+ TPS.

introduction
THE METAPHOR

Introduction: The Gas Fallacy

The 'gas' metaphor is a misleading abstraction that obscures the true multi-resource nature of blockchain execution.

Gas is a misnomer. It conflates compute, storage, and bandwidth into a single, opaque unit, creating a broken pricing model. This abstraction fails for complex operations like ZK-proof verification or large calldata writes, where resource costs diverge wildly.

Ethereum's EIP-4844 proves this. By introducing blob-carrying transactions, it explicitly separated data availability costs from execution gas. This architectural shift acknowledges that L1 resources are not fungible and require distinct markets.

The fallacy breaks MEV and intents. Solvers on UniswapX or CowSwap optimize for total value, not gas efficiency, because the real cost includes opportunity cost and cross-domain liquidity. Gas is just one line item in a complex settlement bill.

Evidence: On Arbitrum Nitro, L2 gas costs are dominated by L1 data posting fees, not local execution. A 'cheap' L2 transaction can have a volatile, high underlying cost, demonstrating the decoupling gas obscures.

key-insights
THE METAPHOR IS BROKEN

Executive Summary

The 'gas' metaphor, borrowed from Ethereum's early days, is a misleading abstraction that distorts economic incentives and cripples user experience.

01

The Problem: Gas Creates a Tax on Failure

Users pay for failed transactions, creating a hostile UX where experimentation is punished. This is antithetical to computing, where you only pay for successful execution.

  • Economic Distortion: Failed DeFi arbitrage or NFT mints still incur costs.
  • UX Friction: Users must estimate complex, volatile fees before acting.
  • Innovation Tax: Deters development of complex, conditional transactions.
100%
Wasted on Fails
$1B+
Annual Burn
02

The Solution: Resource Credits & Session Keys

Shift from per-op payment to capacity-based models. Users or apps prepay for a bundle of compute/bandwidth, enabling predictable costs and abstracting complexity.

  • Predictable Pricing: Apps can offer flat fees or subscriptions.
  • User Abstraction: No more wallet pop-ups for every minor action.
  • Adoption Catalyst: Mirrors web2 cloud pricing (AWS credits, API calls).
~0
UX Friction
Solana, ICP
Early Adopters
03

The Problem: Volatility Breaks Product Design

Gas price swings of 1000x+ during congestion make cost prediction impossible, breaking any service with fixed pricing or tight margins.

  • DeFi Unreliability: Sandwich attacks and failed trades due to volatility.
  • Product Impossibility: Can't build a stable-fee streaming service or game.
  • Centralization Pressure: Users flee to L2s/Rollups for predictability.
1000x
Price Swing
L2s
Beneficiary
04

The Solution: Intent-Based Architectures & Auctions

Separate declaration of what from execution of how. Users submit desired outcomes (intents); specialized solvers (like in UniswapX, CowSwap) compete to fulfill them efficiently, baking costs into the result.

  • Cost Certainty: User specifies max cost; pays only if fulfilled.
  • Efficiency Gains: Solvers optimize routing across Across, LayerZero.
  • Market Dynamics: Shifts fee market from block space to outcome fulfillment.
UniswapX
Protocol
-90%
MEV Reduction
05

The Problem: It's Not Actually a Commodity

Gas falsely equates block space with a uniform commodity like oil. In reality, network demand is hyper-heterogeneous: a DeFi swap and an NFT mint consume the same gas but have wildly different economic value and urgency.

  • Inefficient Allocation: Urgent arbitrage and casual ENS renewal compete equally.
  • No QoS: Critical txs (oracle updates) get no priority lane.
  • Mispriced Resource: Fails to capture the value of the computation, just the cost.
1
Blunt Instrument
0
Priority Tiers
06

The Solution: Programmable Fee Markets & Time-Band Auctions

Allow applications to define and pay for specific resource profiles (e.g., high-priority compute, guaranteed bandwidth). Implement fee markets segmented by time-sensitivity (e.g., next block vs. next 10 blocks).

  • Application-Specific: Social app pays for cheap, delayed txs; exchange pays for priority.
  • Efficient Pricing: Resources priced on derived demand, not raw consumption.
  • Future-Proof: Enables new application categories (on-chain gaming, streaming).
EIP-1559
First Step
Fuel, Anoma
Research
thesis-statement
THE GAS MISMATCH

The Core Argument: Resource Disaggregation

The 'gas' metaphor fails because it bundles compute, storage, and bandwidth into a single, opaque fee, creating market inefficiencies that modern execution layers are already disaggregating.

Gas is a bundled abstraction that conflates three distinct resources: compute (CPU), storage (state growth), and bandwidth (calldata). This bundling forces a single, inefficient pricing model onto resources with fundamentally different cost structures and supply constraints.

Disaggregation enables market efficiency. Modern L2s like Arbitrum and Optimism already separate data publication (expensive, on L1) from execution (cheap, off-chain). This is why data availability layers like Celestia and EigenDA exist—they specialize in the storage/bandwidth component, creating a competitive market for each resource.

The EVM gas model is a bottleneck. It requires every node to redundantly process every operation, making specialized hardware or parallel execution impossible. Solana's Sealevel and Monad's MonadDB demonstrate that disaggregating execution from state access is the path to scaling.

Evidence: Arbitrum Nitro's L1 data costs are 90% of its total fees, while execution is negligible. This proves the cost centers are already separate; the market just needs the pricing to reflect that.

historical-context
THE GAS ILLUSION

How We Got Here: Ethereum's Monolithic Bottleneck

Ethereum's 'gas' metaphor fails to capture the true, multi-dimensional resource constraints of a monolithic blockchain.

Gas is a misnomer. It conflates computation, storage, and bandwidth into a single, opaque unit. This abstraction hides the true resource bottlenecks—primarily state growth and data availability—that limit scalability far more than raw compute.

Monolithic architecture creates contention. Execution, settlement, consensus, and data availability compete for the same block space. A popular NFT mint doesn't just consume compute; it congests the data pipeline for DeFi settlements and L2 proofs.

The evidence is in the fees. During peak demand, simple swaps on Uniswap can cost $50, while complex ZK-proof verification for a rollup like zkSync costs a similar flat rate. This price parity for vastly different workloads proves the model is broken.

The solution is specialization. Modern scaling, via rollups like Arbitrum and Optimism, separates execution from settlement. Further specialization, through data availability layers like Celestia and EigenDA, isolates another core resource. Gas was a necessary simplification; modularity is the correction.

COMPUTATIONAL COMMODITIES

Resource Pricing: Gas vs. Solana

A first-principles comparison of how Ethereum's gas model and Solana's local fee market price and allocate network resources.

Core Metric / MechanismEthereum Gas ModelSolana Local Fee Market

Pricing Unit

Gas (Gwei)

Lamports per Compute Unit

Auction Mechanism

First-price, Global (EIP-1559 base fee)

Second-price, Localized (per account)

Fee Predictability

Volatile; 30-day avg. base fee swing: >100%

Stable; priority fee typically < 0.0001 SOL

Resource Isolation

Congestion Impact

Global; one NFT mint can spike all DeFi

Localized; spam to Serum doesn't affect Pyth

State Rent Mechanism

Refund via storage gas (complex)

Explicit rent paid in SOL (epochly)

Typical Simple Swap Cost

$1.50 - $15.00

< $0.001

Throughput Ceiling (Theoretical)

~100 TPS (post-danksharding: ~100k)

~65,000 TPS (theoretical)

deep-dive
THE GAS ILLUSION

Architectural Deep Dive: Solana's Fee Market Mechanics

Solana's local fee market and priority fee system expose why the 'gas' metaphor fails for modern, parallelized blockchains.

Gas is a sequential bottleneck. The Ethereum Virtual Machine (EVM) metaphor treats computation as a single-threaded resource, forcing a global auction for a serial queue. This creates predictable congestion and MEV extraction vectors exploited by builders like Flashbots.

Solana uses localized congestion pricing. Its Sealevel runtime executes transactions in parallel, so fees target specific contended state (e.g., a popular NFT mint or Jupiter DEX pool). This is a compute-unit auction, not a gas auction.

Priority fees are state-specific bribes. Users attach micro-payments to jump local queues, creating a multi-dimensional fee market. This contrasts with Ethereum's post-1559 base fee, which is a blunt, network-wide instrument.

Evidence: During the JTO airdrop, Solana's fee for the Jupiter program spiked to 0.01 SOL while other transactions cost 0.000005 SOL. This granularity is impossible in a monolithic gas model.

case-study
BEYOND GAS

Real-World Impact: Jito, Helius, and the Builder Stack

The 'gas' metaphor for blockchain compute is a relic of the EVM era, obscuring the true resource markets and value capture in modern high-performance chains like Solana.

01

The Problem: Gas is a Blunt, Opaque Tax

EVM's gas model bundles compute, state, and bandwidth into a single, user-paid fee. This creates:\n- Inefficient pricing: Users overpay for simple ops, underpay for spam.\n- Opaque MEV: The true cost of block space (extractable value) is hidden from users.\n- Developer blindness: Apps can't programmatically manage resource budgets.

~30%
MEV Tax
0 Visibility
Real Cost
02

Jito: Unbundling Block Space into a Liquid Market

Jito's Solana client separates block production from consensus, creating explicit markets for:\n- Compute Units (CU): Precise, auction-based pricing for execution.\n- MEV Capture: Jito's bundlers and searchers compete to pay validators for orderflow, subsidizing user tx costs.\n- Result: Users get faster, cheaper txs; validators earn $200M+ in MEV tips; the network's true economics are surfaced.

$200M+
MEV Tips
-95%
User Fees
03

Helius: The Resource-Aware RPC & Developer Stack

Helius exposes Solana's resource model (CUs, bytes, accounts) via APIs, enabling:\n- Predictable costing: Devs simulate and budget for compute before mainnet.\n- Priority fee optimization: Dynamic fee suggestions based on real-time network congestion.\n- Superior data: ~100ms RPC latency and specialized indexers (e.g., for compressed NFTs) turn raw resources into usable infrastructure.

~100ms
RPC Latency
Pre-Execution
Cost Sim
04

The Builder Stack: Protocol-Owned Liquidity for Blocks

Firms like Jump Crypto and Triton operate "builders"—specialized nodes that construct optimal blocks. This creates:\n- Vertical integration: Control over orderflow, MEV extraction, and RPC services.\n- New revenue lines: Beyond staking yields to include searcher payments and data sales.\n- The real stack: The competitive layer isn't the chain, but the software and capital optimizing its physical resources.

10x+
Validator Revenue
Vertical
Integration
05

Solana's Native Model: Compute Units as First-Class Citizens

Solana's architecture treats compute as a measurable, limitable resource from day one. Key advantages:\n- Deterministic pricing: Fees are based on recorded Compute Unit consumption, not opaque gas guessing.\n- Parallel execution: CUs enable Sealevel runtime to process thousands of independent txs simultaneously.\n- Localized fee markets: Congestion in one program (e.g., pump.fun) doesn't spill over to the entire chain.

50k+
TPS Capacity
Localized
Congestion
06

The Future: Intent-Based Resource Allocation

The endgame is users expressing desired outcomes ("swap X for Y at best price"), not signing txs. This requires:\n- Solvers & Fillers: Networks like Jupiter, 1inch act as resource managers, competing to fulfill intents optimally.\n- Abstraction of complexity: Users never see CUs or priority fees, just results.\n- Universal liquidity: Cross-chain intents via layerzero or wormhole turn all chains into a single resource pool.

Intent-Driven
UX
Cross-Chain
Liquidity
counter-argument
THE USER EXPERIENCE FAILURE

Steelman: The Case for Gas Abstraction

The 'gas' metaphor creates a fundamental UX barrier that prevents mainstream adoption by forcing users to manage a separate, volatile currency for network access.

Gas is a UX tax. The requirement to hold a native token for transaction fees creates friction for every new user. This design forces onboarding through centralized exchanges before any interaction, a process that fails for 99% of potential users.

Abstraction enables intent. Protocols like ERC-4337 Account Abstraction and Solana's versioned transactions separate fee payment from transaction signing. Users sign intents; relayers or paymasters handle gas, enabling sponsored transactions and batch operations.

The metaphor is obsolete. 'Gas' implies a uniform, consumable resource. Modern chains like Near and Avalanche use fractional gas pricing, where fees are a function of specific computational and storage costs, not a simple gas unit.

Evidence: Starknet's fee market demonstrates abstraction's necessity. Its shift to a STRK-denominated fee model, decoupled from ETH, reduced user complexity by 40% for non-ETH holders, proving native token dependency is a solvable bottleneck.

future-outlook
THE GASLESS FRONTIER

The Future: Beyond Solana

The 'gas' metaphor is a legacy constraint that misrepresents modern blockchain resource management and user experience.

Gas is a misnomer. It conflates execution, storage, and state access into a single, opaque fee. Modern systems like Solana and Sui separate these concepts, charging for compute units and storage rent independently.

Intent-centric architectures eliminate gas abstraction. Protocols like UniswapX and CowSwap let users specify outcomes, not transactions. Solvers compete on execution, absorbing gas complexity and creating a fee-less user experience.

Parallel execution demands new models. The Ethereum single-threaded gas model creates contention. Parallel VMs like Solana's Sealevel and Aptos' Block-STM require localized fee markets to price concurrent resource access fairly.

Evidence: Solana's prioritization fees separate base compute cost from network congestion pricing. This is a direct move away from the monolithic gas model, enabling more efficient block space allocation.

takeaways
WHY 'GAS' IS AN OUTDATED METAPHOR

TL;DR: Key Takeaways

The 'gas' metaphor misrepresents blockchain resource allocation, creating user friction and limiting protocol design. Modern systems are moving to abstracted, intent-based models.

01

The Problem: Gas is a User Abstraction Leak

Users shouldn't need to understand computational opcodes to transact. The gas model forces them to manage volatile, chain-specific pricing for a generic resource: execution time.

  • Cognitive Overhead: Users must estimate and pay for 'work', not outcomes.
  • Failed Transactions: Wasted fees from incorrect estimation cost users ~$100M+ annually.
  • Wallet Sprawl: Managing native tokens for gas on multiple L2s is a UX nightmare.
~$100M+
Wasted Annually
10+
L2 Gas Tokens
02

The Solution: Account Abstraction (ERC-4337)

Decouples payment from execution, allowing sponsored transactions, batch operations, and gas payments in any token.

  • Session Keys: Enable gas-less interactions for dApps, similar to web2.
  • Paymasters: Let protocols or dApps subsidize fees, onboarding users.
  • Bundled Operations: Single signature for multiple actions, reducing total cost.
1
Signature for N Actions
ERC-4337
Standard
03

The Future: Intent-Based Architectures

Users declare what they want, not how to do it. Systems like UniswapX, CowSwap, and Across solve for optimal fulfillment.

  • Expressivity: "Swap this for that at best price across any chain."
  • Efficiency: Solvers compete, capturing MEV for user benefit.
  • Abstraction: No gas management, no chain selection, just results.
UniswapX
Key Entity
~20%
Better Prices
04

The Metric: Cost-Per-Outcome, Not Cost-Per-Op

The endgame is pricing based on guaranteed results, not computational steps. This enables true scalability.

  • Unified Liquidity: Protocols like LayerZero and Chainlink CCIP abstract cross-chain execution.
  • Predictable Pricing: Subscription or fixed-fee models become possible.
  • Resource Markets: Dedicated block space (e.g., EigenLayer) and execution lanes replace monolithic gas auctions.
Cost-Per-Outcome
New Metric
EigenLayer
Resource Market
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Why Gas is an Outdated Blockchain Metaphor in 2024 | ChainScore Blog