Wei is a unit of measurement for Ethereum (ETH). It is the smallest denomination of Ether and can be subdivided into one quintillionth of an ETH. Wei has become increasingly popular as it allows for more granular control over financial transactions, making it easier to send smaller amounts without incurring large transaction fees.
The term “wei” was first proposed by Vitalik Buterin in 2014, who chose this name after Wei Dai, the inventor of b-money and creator of Bitcoin’s predecessor. The symbol used to designate 1 wei is ‘µETH’ or ‘ueth’, where 1 ueth = 10^-6 ETH (1 millionth). Additionally, there are other denominations that are derived from wei such as kwei (10^3), Mwei (10^6), Gwei (10^9) and so on.
Wei is often used when sending transactions with smart contracts in order to minimize gas costs. Gas refers to the amount paid by users for executing a specific action on Ethereum’s blockchain; therefore lower gas costs means less money spent per transaction. For example, if you wanted to create a contract but didn’t want to pay too much in gas fees then using wei would allow you to do so because it requires fewer resources than larger denominations like ether or finney which require more computational power and thus higher gas prices.
In conclusion, wei has become an important part of Ethereum due its ability facilitate small payments without incurring large transaction fees associated with larger denominations like ether or finney. As such, understanding how wei works can help users save money while still being able make use of all the features available on Ethereum’s blockchain network