Wei Definition
Wei is the smallest denomination of ether, which is the cryptocurrency of the Ethereum network. It’s named after Wei Dai, the computer scientist who is known for the development of the b-money concept, which significantly contributed to the creation of Bitcoin.
Wei Key Points
- Wei is the smallest fraction of Ether, the cryptocurrency of the Ethereum network.
- It is named after Wei Dai, a computer scientist who significantly contributed to the development of Bitcoin.
- One Ether equals one quintillion (1,000,000,000,000,000,000) Wei.
- Wei allows for precise transactions and computations within the Ethereum network.
What is Wei?
Wei represents the base level of denomination in Ether’s cryptocurrency value. Ether is divided into smaller units to facilitate and enable more granular transactions and computations on the Ethereum Blockchain. This similar to how a dollar or euro can be divided into cents for everyday transactions.
Why use Wei?
The use of Wei allows for higher precision in transactions, minimizing the chance of errors in contract execution. Additionally, with the rise in value of Ether, smaller denominations have become essential for more affordable and inclusive transactions.
Who uses Wei?
Wei is used by people conducting transactions on the Ethereum network. This includes developers running smart contracts, traders purchasing tokens, users using dApps, and miners being rewarded for validating transactions.
When is Wei used?
Wei is used whenever a transaction is executed on the Ethereum network. It becomes particularly important during periods of high network congestion, as transactions with higher Wei amounts tend to be processed first.
Where is Wei used?
Wei is used within the Ethereum network. Transactions relating to smart contracts, dApps, ICOs or other use cases of the Ethereum blockchain are often priced in Wei.
How is Wei used?
Wei is used in transactions similar to how cents are used in dollars. When sending Ether, users stipulate the amount in Wei they are willing to pay per unit of gas, which is the power required to execute a transaction or smart contract on the Ethereum network.
