Gwe Definition

Gwei is a small unit of ether used on the Ethereum network to quote transaction fees, also called gas prices. One gwei equals 0.000000001 ETH, which is one billionth of an ether.

Where the name comes from

The word combines “giga” and “wei.” Wei is the base unit of ether, and “giga” means one billion. So 1 gwei equals 1,000,000,000 wei. In everyday use, gwei is the go-to way to talk about fees because the raw ETH amount would be a long string of zeros. Some communities also use the nickname “shannon” for gwei

What gwei is used for

On Ethereum, every action costs gas. Wallets and apps display the gas price in gwei so you can see and set how much you are willing to pay. When the network is busy, typical gas prices rise. Transactions offering higher prices tend to get picked up first. This is why many guides say to raise the gwei value if you want faster confirmation.

How gwei fits into a fee

A transaction’s cost is determined by two parts: how much work the action requires and the price per unit of that work. The price part is shown in gwei. Your wallet combines the units of gas needed with the price in gwei to show the final ETH fee before you hit send.

Quick conversions

• 1 ETH = 1,000,000,000 gwei
• 1 gwei = 0.000000001 ETH

Because ETH has a floating market price, the fiat value of 1 gwei changes as ETH moves up or down.

Why gwei instead of ETH

Using gwei keeps numbers readable. Saying “15 gwei” is simpler than “0.000000015 ETH” for the same gas price. It also makes it easier to compare fee quotes across wallets and explorers without counting zeros.

Common misconceptions

• Gwei is not a separate coin. It is just a denomination of ether used to price network activity.
• Higher gwei does not change a transaction’s contents. It only affects how quickly it may be included when the network is congested.