Similar to various small value currencies circulating for real-world fiat currencies such as nickel, coins, and penny, some denominations have become commonplace in the crypto world to indicate values. Different segments of a particular token.
With ETH price increasing in 2017, the transaction size has become smaller. Suppose, if 1 ETH = 800 USD, then one would only need to spend part of ether (0.0025 ETH) for the equivalent of 2 USD. Other fractional costs, like mining fees, can be even smaller in value, which makes it difficult to quote long fractional values (like 0.000034243 ETH).
New digital currency denominations are gaining popularity that help accurately denote smaller transactions that appear to be a very long fraction in terms of ether, but highly valuable when converted to US dollars or money. Other fiat currencies.
Gwei is also known as shannon, nanoether, or simply nano, to denote the ninth power in the ether fraction.
You can use Myetherwallet’s tool to calculate GWEI <-> WEI <-> USD here, which can be helpful when you want to know your transaction fees in ETH, instead of GWEI.
What is gas?
Gas is the internal cost of performing a transaction or contract in Ethereum.
The concept of using a separate unit (gas price) instead of the network’s default token, ETH. It separates the units of Ether (ETH) from the market value. Therefore, a miner can decide to increase or decrease the gas usage according to his / her needs.
For example, imagine that miners claim 1 / 10,000 ether for a mining run. If they then wanted to increase mining fees by 25%, it would go up to 1/8000 ether. This increase in mining price will start to affect the price of ether in fiat currencies like the US dollar, VND maybe that’s not the ideal way.
Instead, if the mining job is quoted in a separate unit, like the gas price, and this value would be 1 / 10,000 ether, the increase (or decrease) could be addressed by change gas price. For an equal 25% change, miners will get the same benefit if the gas is changed to be 1 / 8,000 value. That keeps the ether market price independent of the units required to use network computing.