In an interdependent global world, where the USD acts as the single largest accepted currency leading to nations hoarding them up in national reserves, cryptocurrencies like Ether act to break the barrier. Ether is cryptocurrency, that is a scare digital money which can be used to carry out daily transactions like buying essentials. Ether works on a peer-to-peer network, effectively eliminating intermediaries such as banks. The currency operating on blockchain network provides it security unlike regular money.
The fact that cryptocurrencies like Ether are decentralised and not controlled by a single central entity, take it beyond the confines of paper currency being controlled by a central bank.
GWEI is similar to every fiat currency that we are familiar with, that are broken down into smaller units for better handling and a more accurate valuation of commodities. GWEI is the smallest denomination used for transaction, in terms of valuation that is associated with the second largest cryptocurrency – Ether or Ethereum. GWEI is that unit of Ether that is or can be used for transactions to be carried out in the ordinary transactions.
GWEI is also referred as nano-ether which is used to denote the value that is attributed to one GWEI. One GWEI is equivalent to one-ninth of an Ether. To put it in more transactional and common terms, GWEI is that unit of Ether which accords a price or value of sorts to any commodity so it can be used in the blockchain network to carry out the transaction
In a free trade market, the exchange value for currencies is highly volatile, so is the case with Ether. Assuming 1 Ether is currently valued at $ 5000 then in order to buy a commodity worth $50, only a fraction of Ether needs to be spent, this where the use of the term GWEI comes in handy. The usage of GWEI helps identify these low valued transactions and does not require the usage of long and confusing fractional values.
The Blockchain network relies upon miners that work in the background to accept a transaction and let it through across the network to give effect to any purchase. GWEI can also be seen to the fee that is charged by the miners on the cryptocurrency network to allow the passage of any requested transaction. Transactions on the Ethereum Blockchain Network are carried out using Gas which is equated with the network transaction fee that is charged by the miners who allow the transaction to process and go through.
With the constantly fluctuating valuation of Ethereum in free trade market, the value one GWEI holds is only going down with the upward rise of 1 ETH against USD. For anyone looking to make a fortune out of holding cryptocurrency, it would only make sense to have access to huge amounts of GWEI. The division of Ether into smaller units allows individual to own the currency partially without needing to own the highly valued 1 Ether which might make it inaccessible to all.