What is Gwei Ethereum

What is Gwei?

Term Gwei refers to the small denomination of Ether (ETH), which is the native currency of the Ethereum blockchain.

Along with ETH, Gwei is the most commonly used designation for the Ethereum cryptocurrency, and it is especially useful when it comes to fees, Gas Fees. Simply put, gas is the pricing mechanism used on the Ethereum network. Such a mechanism is responsible for calculating fees when users complete a transaction or smart contract operation.

Specifically, the unit of Gwei is defined as one billionth (one nano) ether. Thus, 1 Gwei is equal to 0.000000001 or 10-9 ETH. Conversely, 1 ETH equals one billion (109) Gwei.

As shown on Ethereum GitHub, there are several other ether names, each of which is a multiple of wei (the smallest unit of ETH).

Unit

Wei meaning

Wei

Ether value

Wei

1 wei

1

10-18 ETH

Kwei

10³ wei

1,000

10-15 ETH

Mwei

106 wei

1,000,000

10-12 ETH

Gwei

109 wei

1,000,000,000

10-9 ETH

Microether

1012 wei

1,000,000,000,000

10-6 ETH

Milliether

1015 wei

1,000,000,000,000,000

10-3 ETH

Ether

1018 wei

1,000,000,000,000,000,000

1 ETH

To better understand the concept of Gwei, we can use the analogy with the US dollar, where Gwei would be equivalent to coins (cents) and ETH would be equivalent to dollar bills. For small purchases, it is easier to quote prices in cents rather than fractions of a dollar. Thus, Gwei can come in handy when measuring small values, and for this reason it is widely used in calculating the price of gas.

Although Gwei is less common, it is sometimes referred to as Shannon, NanoEther, or Nano. The term Shannon refers to the mathematician and cryptographer Claude Shannon, who is known as the father of information theory.

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