Gwei News

Gwei is a denomination of Ethereum (ETH) equivalent to 0.000000001 ETH (10-9 ETH) and is usually used to denote gas or transaction fees on the blockchain network. An abbreviation of the term “giga-wei,” 1 gwei equals 1,000,000 wei, with wei being the smallest unit of ETH, amounting to 10-18 ETH.

Since every transaction on the Ethereum network requires computational effort to execute specific instructions, the applicable gas fees are represented in the form of gwei and added or subtracted to the amount of ETH being transacted, depending on whether it is a purchase- or sale-based transaction.

Akin to fiat currencies like the United States dollar being broken down into smaller denominations like pennies and quarters, gwei is used to denote the transaction cost on the Ethereum network instead of displaying it as a fraction of ETH, similar to how satoshis (sats) are used to denote Bitcoin (BTC) transactions. Although there are other terms such as wei and pwei as well, the majority of the transactions are represented in either ETH or gwei, depending on the size of the transaction or gas fees involved.