DEFINITION of 'Gwei (Ethereum)'

Gwei is a denomination of ether (ETH), the cryptocoin used on the the Ethereum network.

1 Ether = 1,000,000,000 Gwei (109)

BREAKING DOWN 'Gwei (Ethereum)'

Similar to the various small-value coins that are in circulation for real-world fiat currency like the nickel, dime and penny, several denominations have become popular in the cryptocurrency world to refer to the various fractional values of a particular token.

With ether valuations shooting through the roof recently, transaction sizes have become smaller. Say, if 1 ETH = 800 USD, then one needs to spend only a fraction of an ether (0.0025 ETH) for an equivalent of 2 USD. Other fractional costs, like the mining fee, may be even smaller in value, which makes it difficult to quote the lengthy fractional value (like 0.000034243 ETH).

New digital currency denominations are becoming popular that help to correctly denote the smaller transactions which may appear like a very lengthy fraction in terms of ether, but a high value when converted to U.S. dollars or other fiat currency.

Gwei is also called shannon, nanoether, or simply nano, to denote the ninth power of the fractional ether. (See also, Wei Definition.)

  1. Ether (Cryptocurrency)

    Ether, often perceived as the native currency of Ethereum, actually ...
  2. Wei

    Wei is the smallest denomination of ether, the cryptocurrency ...
  3. Ethereum Enterprise Alliance

    The Ethereum Enterprise Alliance brings together start-ups and ...
  4. Ethereum Classic

    Ethereum Classic is a decentralized, blockchain-based distributed ...
  5. Fiat Money

    Fiat money is currency considered legal tender, but it lacks ...
  6. Digital Currency

    Digital Currency offers quicker and low cost transaction processing ...
Related Articles
  1. Tech

    What's Putting Pressure on Ethereum's Price?

    Ether, one of the most sought after cryptocurrencies, has been under pressure lately.
  2. Tech

    Why Did The SEC Single Out Ether?

    An SEC official yesterday said that ether is not a security. Why did the agency, which has threatened to impose securities regulation on ICO tokens, clarify ether's status and not that of other ...
  3. Tech

    How to Short Ethereum

    Some are guessing that a series of flaws and setbacks in the Ethereum code will drive down the price. Should you short?
  4. Tech

    Ether Sets a New Daily Transactions Record

    There are ten times more ETH transactions taking place per day now than at the start of the year.
  5. Tech

    How Do You Mine Ethereum?

    Mining for ethereum is a profitable, essential, and oftentimes confusing process. Here's the basics of how to do it.
  6. Tech

    SEC Official Declares Ether is Not A Security

    Bill Hinman, U.S. Securities and Exchange Commission Director of Corporate Finance, told audiences at a Yahoo Finance summit that ether is not a security.
  7. Tech

    Digital Currencies: The Best-Performing FX Bets of 2016?

    Digital currencies like bitcoin may turn out to have been better "forex" bets than any fiat currency.
  8. Tech

    Bitcoin Vs Ethereum: Driven by Different Purposes

    The popularity and rising market capitalization of Ether brings it in competition with all cryptocurrencies, especially from the trading perspective.
  9. Tech

    Why the Crypto Market Gained $40 Billion in 2 Days

    Bitcoin, ether, ripple and other top coins gained as much as 10% each within 48 hours.
  10. Tech

    The First-Ever Ethereum IRA is a Game-Changer

    With the launch of Ethereum IRA, investors can deploy funds in Ethereum for retirement purposes through a self-directed IRA.
  1. Is fiat money more prone to inflation than commodity money?

    Learn more about commodity and fiat money and some of the differences between them. Find out when the U.S. abolished the ... Read Answer >>
  2. Why did the New York Stock Exchange report prices in fractions before it switched ...

    New York Stock Exchange used to report prices in fractions before it switched to decimal reporting. Find out why they made ... Read Answer >>
Trading Center