Gwei

Gwei is a unit used to measure transaction fees (gas fees) in the Ethereum network. It is the smallest denomination of Ether (ETH) used for gas calculations, where 1 Gwei = 0.000000001 ETH (one billionth of an Ether). Gas fees are measured in Gwei because blockchain operations often require very small amounts, making transaction cost calculations more convenient.

Gas fees in Gwei fluctuate based on network congestion—when more users send transactions, fees increase. Users can set a higher gas fee to speed up confirmation or wait for lower network activity to pay less. The introduction of EIP-1559 in Ethereum implemented an automatic burn mechanism for part of the gas fees, impacting the network’s economic model.