Gas estimation refers to the process of calculating the amount of computational resources required to successfully execute a blockchain transaction or smart contract. In networks such as Ethereum, every action performed on the blockchain, sending tokens, interacting with a decentralized application, or deploying a smart contract, consumes a specific amount of gas. Gas estimation helps users and developers predict how much gas a transaction will need before it is submitted to the network.

Accurate gas estimation is important because it directly affects whether a transaction succeeds or fails. If the gas limit is set too low, the transaction may run out of gas during execution and revert, wasting the gas already spent. On the other hand, setting the gas limit too high does not usually increase costs unnecessarily, but it locks up more funds temporarily until the transaction is processed. Estimation tools aim to strike a balance by suggesting an appropriate gas limit based on current network conditions and transaction complexity.

Wallets and blockchain explorers often provide automatic gas estimation by simulating the transaction execution. This simulation analyzes the smart contract logic and predicts the required computational steps. Gas estimation also considers factors such as contract interactions, data size, and network congestion. For developers, efficient gas estimation helps optimize smart contracts and reduce costs for users. Overall, gas estimation improves transaction reliability, cost control, and user experience, making it a crucial component of interacting with modern blockchain networks.