Gwei is a denomination of the cryptocurrency Ether (ETH), used on the Ethereum network. It is the smallest unit of Ether, worth one-billionth of an ETH (1 gwei = 0.000000001 ETH). Gwei is used to pay for gas fees on the Ethereum network. Gas fees are paid to miners to process transactions and add them to the blockchain.

Gwei is a more convenient unit than ETH for paying gas fees because it allows for smaller denominations. For example, if a gas fee is 10 gwei, this is much easier to calculate and pay than if the gas fee was 0.00000001 ETH.

Gwei is also used to calculate the profitability of mining on the Ethereum network. Miners are paid in ETH for processing transactions and adding them to the blockchain. However, they also have to pay gas fees to add their own transactions to the blockchain. If the gas price is too high, then it may not be profitable for miners to mine on the Ethereum network.

Summary

Gwei is a denomination of the cryptocurrency Ether, used on the Ethereum network to pay for gas fees. Gas fees are paid to miners to process transactions and add them to the blockchain. Gwei is a more convenient unit than ETH for paying gas fees because it allows for smaller denominations.