The transaction fees on the Ethereum network are denoted using Gwei. The value of one Gwei is equivalent to 0.000000001 ETH. Gwei is the short form for the term gigaWei. Gwei is used to make calculations easier while dealing with fractions of Ethereum. Wei is the smallest unit of the Ethereum token. One Gwei is equal to 1 billion Wei.
Gwei is not applicable for the smaller fractions of other crypto assets. It is strongly used in reference to Ethereum. Suppose an investor has to pay 0.000000050 ETH as gas fees. Then the amount of Gwei paid by him is 50.
Gwei is the term associated with the network fees paid on the Ethereum network. Since these fees are a very small portion of the Ethereum token, using Gwei as a measuring unit becomes easy while discussing gas fees. This gas fee is calculated based on the computational energy required along with the network congestion during the time of transaction. This fee is then used to reward miners who are validating the blocks and the transactions on the Ethereum blockchain.