What is Gwei?
Gwei is a term that is widely used in the world of Ethereum. We start with a brief explanation of the term itself.
So what is it?
Gwei is a denomination of Ether (ETH), the cryptocurrency used on the Ethereum network. 1 Ether is equivalent to 1,000,000,000 Gwei.
Converting different units of ETH may be tricky. You can find a handy, quick and easy Gwei calculator here. Here you can convert and convert Wei, Gwei and Ether among themselves.
A further explanation
Just as there are small value coins in fiat money such as a dime, a euro cent or the English penny, different denominations have become popular in the cryptocurrency world. These denominations refer to the different fractional values of a particular token.
Breaking down into smaller parts
As the value of Ether increases, the transaction sizes become smaller. Suppose 1 ETH = € 200, then you only need to spend a fraction if you want to spend, say, €2. Other fractional costs, such as transaction fees and the miners fee, can be even smaller in value. This makes it difficult to state the long fractional value, such as 0.0000023276 ETH.
Other names for gwei
It is also sometimes called Shannon, Nanoether, Nano-Ether or Nano. This is to denote the ninth power of the whole.
Now that you know how gwei works, go on and read how do gas fee's work on Ethereum.