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What is Gwei? - Crypto in Plain English - Episode 158 - by cryptohunt.it
What is Gwei?
Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.
If you have used Ethereum, you have likely encountered the term “Gwei” (Christian: Gu-uei). And if you haven’t – tune in, because it’s one of the core things to learn when using Ethereum or similar blockchains.
A Gwei is simply the smallest possible fraction of an Ethereum. While you can certainly send around whole Ethereums, you don’t have to. In fact, an entire Ethereum is worth several thousand dollars, and if you wanted to buy ice cream with it, you would need to send a small fraction of one - otherwise, that would be a very expensive frozen treat!
A Gwei is very similar to a Dollar or Euro Cent. Those cents are also the smallest possible fractions of that currency. When you buy something, the price always comes out to something rounded to the nearest cent. No store will ever charge you 1 dollar and 95.3 cents. It’ll just be 1.95.
And a Gwei is really, really small actually. It’s one billionth of one Ethereum, which is currently worth one 30.000th of a US dollar cent.
But where does the name come from? It is named for Wei Dai, one of the pioneers of the crypto technology that is powering many of today’s blockchains.
And now that you know what a Gwei is, keep an eye out for other names of the same concept. In Bitcoin, it’s called a “Satoshi”, in Cardano a “lovelace”, and Stellar calls it a “stroop”. But now you know: It’s all the same idea.
Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
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By cryptohunt
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What is Gwei?
Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.
If you have used Ethereum, you have likely encountered the term “Gwei” (Christian: Gu-uei). And if you haven’t – tune in, because it’s one of the core things to learn when using Ethereum or similar blockchains.
A Gwei is simply the smallest possible fraction of an Ethereum. While you can certainly send around whole Ethereums, you don’t have to. In fact, an entire Ethereum is worth several thousand dollars, and if you wanted to buy ice cream with it, you would need to send a small fraction of one - otherwise, that would be a very expensive frozen treat!
A Gwei is very similar to a Dollar or Euro Cent. Those cents are also the smallest possible fractions of that currency. When you buy something, the price always comes out to something rounded to the nearest cent. No store will ever charge you 1 dollar and 95.3 cents. It’ll just be 1.95.
And a Gwei is really, really small actually. It’s one billionth of one Ethereum, which is currently worth one 30.000th of a US dollar cent.
But where does the name come from? It is named for Wei Dai, one of the pioneers of the crypto technology that is powering many of today’s blockchains.
And now that you know what a Gwei is, keep an eye out for other names of the same concept. In Bitcoin, it’s called a “Satoshi”, in Cardano a “lovelace”, and Stellar calls it a “stroop”. But now you know: It’s all the same idea.
Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.