When it comes to Ethereum, there is a lot of confusion surrounding the different denominations. For example, when someone says they want to buy “1 ETH”, how much are they actually buying?
The answer to this question is not as simple as it seems. While there is a standard unit for Ethereum called an “ether”, there are also smaller units that go by the name of “finney” and “szabo”.
So, which is the right order for Ethereum denominations?
To understand this, we need to take a closer look at each denomination and what it represents.
Ether is the standard unit of Ethereum. 1 ETH is equivalent to 1,000,000,000 wei, or 1/1,000,000,000 of an ETH.
Wei is the smallest unit of Ethereum and is named after Wei Dai, the creator of b-money. 1 wei is equivalent to 1/1,000,000,000th of an ETH.
Finney is named after computer scientist Hal Finney, who was the first person to receive a Bitcoin transaction. 1 finney is equivalent to 1/1,000th of an ETH.