What Is a Wei?
Wei is the smallest denomination of ether, the cryptocurrency used on the Ethereum network. To put it in perspective, one ether equals 1,000,000,000,000,000,000 wei (10^18^ wei). Alternatively, one wei is one quintillionth (0.000000000000000001) of an ether.
Key Takeaways
- A wei is to ether what a satoshi is to bitcoin—both represent the smallest transaction unit in their respective cryptocurrencies.
- While a U.S. dollar splits into 100 pennies, digital cryptocurrencies like ether are divisible into much smaller units, with wei being the smallest.
- The term ‘wei’ honors Wei Dai, who developed the proto-cryptocurrency ‘b-money’ and contributed to strong cryptographic practices.
How a Wei Works
With the exponential rise in cryptocurrency valuations, it becomes essential to understand how minimal portions of digital assets like ether are handled. While the U.S. dollar is broken down into 100 cents, digital currencies like ether can be subdivided into far smaller units.
These smaller units help manage what would seem exceptionally tiny transactions in ether but could hold substantial value when converted to traditional fiat currencies. Hence, various units assist in clarifying and supporting these transactions.
Sub-Units of Ether
Ethereum has numerous sub-units, each denoting a different quantity of wei, the smallest ether unit. Below are these units along with their informal names and values.
| Unit | Wei Value | Wei | Ether Value |
|---|---|---|---|
| wei | 1 wei | 1 | 10\^-18 ETH |
| kwei (babbage) | 10^3 wei | 1,000 | 10\^-15 ETH |
| mwei | 10^6 wei | 1,000,000 | 10\^-12 ETH |
| gwei (shannon) | 10^9 wei | 1,000,000,000 | 10\^-9 ETH |
| microether | 10^12 wei | 1,000,000,000,000 | 10\^-6 ETH |
| milliether | 10^15 wei | 1,000,000,000,000,000 | 10\^-3 ETH |
| ether | 10^18 wei | 1,000,000,000,000,000,000 | 1 ETH |
The Legacy of Wei Dai
Wei Dai is renowned for his immense contributions to digital privacy and cryptography. A noteworthy yet private figure, Wei Dai graduated with a degree in Computer Science from the University of Washington and later worked at Microsoft’s Cryptography Research Group.
Dai’s early involvement with the cypherpunk movement in the 1990s established him as a formidable force in the cryptographic community. His conceptual work on ‘b-money’ laid the groundwork for advanced digital currencies and ‘smart contracts,’ which self-execute without third-party intervention. In recognition of his pioneering efforts, the smallest unit of ether was aptly named ‘wei.’
By examining Wei Dai’s innovative vision, it’s evident why he remains an influential and honored figure in the development of cryptocurrencies.
Related Terms: Satoshi, Bitcoin, Cryptography, Smart Contracts, b-Money, Ether Units.
References
- BitcoinWiki. “Wei Dai”.
