NFT Glossary Deep Dive: Gwei

NFT Glossary Deep Dive: Gwei

Ellen Britt for CNT #NFT

We recently took a look at gas and gas fees and what those mean for both NFT creators and buyers. One of the terms we mentioned was gwei, the smallest base unit of Ether.

Let’s explore gwei a bit more deeply.

The Ethereum platform’s native currency is ether (ETH) but gas prices will often be expressed in Gwei. Each Gwei is equal to 0.000000001 ETH (10-9 ETH). This makes it easier for both buyers and sellers to talk about price. If your gas costs 1 Gwei, that’s a lot easier than saying or writing out 0.000000001 ETH, even though they are the same.

Is Gwei going the way of the dinosaurs?

But it appears that gwei is quickly becoming a vestigial term, as it was first incorporated when gas fees on Ethereum were low enough that a smaller unit of denomination was warranted.

Many platforms will list their gas fees in both gwei and ETH as well as show you the USD (U.S. Dollar) price.


 

The price of gas always fluctuates

You should also understand that the price of gas will fluctuate up and down, depending on the current demand, the computational power of the smart contracts to be executed, the total number of transactions, and also the size of the smart contract.

Just so you know, the Mintified NFT platform will have some of the lowest gas fees in the space. 


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By Ellen Britt

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