How Is the Gas Price Measured (E.g. Gwei)?
Gas price is measured in Gwei, which is a denomination of the native cryptocurrency (e.g. Ether for Ethereum).
One Gwei is equal to 10^9 (one billion) Wei, and one Ether is equal to 10^18 Wei. Users set the gas price they are willing to pay per unit of gas, and this price determines the total fee.
Glossar
Gas Price
Mechanism ⎊ Gas price, within cryptocurrency networks, represents the computational effort required to execute a specific operation on the blockchain, directly influencing transaction costs and network congestion.
Ether
Volatility ⎊ Ether, within cryptocurrency markets, represents a primary component of option pricing models and risk assessment, directly influencing the theoretical value of derivative contracts referencing its underlying spot price.
Native Cryptocurrency
Genesis ⎊ A native cryptocurrency, fundamentally, represents the foundational token within a specific blockchain network, intrinsically linked to the protocol’s operational consensus and economic incentives.
Denomination
Denomination ⎊ This refers to the smallest unit into which a base currency or asset is divided for transactional purposes, establishing the lowest possible tradeable quantity.
Wei
Unit ⎊ The smallest denomination of Ether, equal to one hundred quintillionth of an Ether, serving as the base accounting unit for all on-chain calculations, including gas cost determination.
Gwei
Denomination ⎊ Gwei, an abbreviation for Gigawei, functions as a standard unit of account for measuring Gas Prices on the Ethereum blockchain, representing one billionth ($10^9$) of an Ether (ETH).