# Gwei

By [seled](https://paragraph.com/@0xxx19) · 2023-04-19

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Gwei is a denomination of the cryptocurrency Ethereum, used to measure the amount of gas required to execute a transaction or run a smart contract on the Ethereum blockchain. Gas is a measure of computational resources required to execute a transaction or contract on the Ethereum network, and it is paid for in units of Gwei.

One Gwei is equal to one billionth of an ether (ETH), which is the native cryptocurrency of the Ethereum blockchain. This means that if the gas price is set at 20 Gwei, then it would require 0.00000002 ETH to execute that transaction or smart contract.

The price of Gwei can fluctuate based on supply and demand on the Ethereum network, and it is typically set by users who are willing to pay more for faster transaction processing times. Higher Gwei prices can result in faster transaction confirmations, while lower Gwei prices can result in slower confirmations or even failed transactions if there is too much congestion on the network.

Overall, Gwei plays an important role in the functioning of the Ethereum network, as it helps to incentivize miners to process transactions and maintain the security and reliability of the blockchain.

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*Originally published on [seled](https://paragraph.com/@0xxx19/gwei)*