Wei, the smallest unit of Ether (ETH), is the native cryptocurrency of the Ethereum blockchain. Cents are a traditional measure for dollars, while Wei is a universal base for all the transactions made on the Ethereum network. One Ether is always equal to 1 quintillion Wei.
The coin is named after Wei Dai, who is a computer scientist, and a cryptography giant whose ideas about digital money gave rise to early blockchain applications. The use of such tiny units helps Ethereum’s system to make very precise calculations, especially at gas fees and smart contract interactions, without any difficulties.
The network’s transactions of the Ethereum Blockchain make use of Wei as their silent partner. In fact, if you were to send or receive ETH, the blockchain would record the amount in Wei for precision and to avoid rounding errors. Converting the values back into Ether is done by wallets and exchanges for better user readability.
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The existence of a base unit like the Wei is important for the functioning of decentralized systems where precision is required. It empowers Ethereum to easily take care of microtransaction, of running automated contracts and of giving a large-scale financial application in one precise unit.
Simply put, the relationship between Wei and Ether is that of a cent to a dollar—but the difference in size is immense.