Create Gas_and_Fees_Obinna.adoc.

`Gas_and_Fees_Obinna.adoc`.

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+1. What is Gas?
+
+Gas is a unit that measures the amount of computational effort required to perform operations on the Ethereum network, such as sending ETH, interacting with smart contracts, or swapping tokens.
+Purpose in Ethereum Transactions:
+Prevents abuse: By requiring gas for every operation, Ethereum avoids spam and infinite loops.
+Incentivizes miners/validators: Users pay gas fees, which go to validators for processing and confirming transactions.
+Limits computation per block: Each block has a gas limit to manage how much computation can happen in one block, ensuring network stability.
+
+2. EIP-1559: Gas Fee Reform
+Ethereum Improvement Proposal 1559 (EIP-1559), introduced in August 2021 (London Hard Fork), changed how gas fees work.
+Key Components:
+
+Base Fee:
+A mandatory fee set algorithmically based on network demand. It adjusts up or down depending on how full the previous block was.
+This fee is burned (removed from circulation), reducing ETH supply.
+
+Priority Fee (Tip):
+Optional extra fee users add to incentivize validators to include their transaction faster.
+
+Burning Mechanism:
+The base fee is burned, making ETH deflationary over time as high usage leads to more ETH being destroyed.
+This aligns incentives and potentially increases ETH value long term.
+3. Slippage
+Slippage refers to the difference between the expected price of a trade and the actual price at execution.
+In Ethereum & Token Swaps:
+Common in DEXs (like Uniswap, SushiSwap).
+When you swap tokens, rapid price changes (from volatility or other transactions) can cause your trade to execute at a less favorable rate.
+
+Relation to Gas:
+
+Low gas fees → slower transaction confirmation → higher risk of slippage.
+High gas fees → faster processing → lower slippage risk.
+DEX users often set a "slippage tolerance" (e.g., 1%) to prevent excessive loss. If the price changes beyond this, the trade fails.
+