Confusion about 18 decimals and 10 decimals price calculation.

[TimeKeyRoll]

If Eth wei has 18 decimals (red circled ) then how come price has 8 decimals ( yellow circled) and i have no idea how come it's mentioning 10 decimals as well (green circled).

I am so lost. could anyone help me to understand in easy language how we are calculating this.

Thankyou very much.

[krakxn]

Get comfortable with this table:

Unit	wei value	wei	ether value
wei	1 wei	1	10^-18 ETH
kwei	10^3 wei	1,000	10^-15 ETH
mwei	10^6 wei	1,000,000	10^-12 ETH
gwei	10^9 wei	1,000,000,000	10^-9 ETH
ether	10^18 wei	1,000,000,000,000,000,000	1 ETH

[TimeKeyRoll]

I understand it's 18 zero in wei's and makes it 1eth.
No I don't understand why there is 10 written. I think while understanding 10 I will get rest of that.
Could you please explain that possibly!?

[krakxn]

I explained it above though: it is to get 10**18, as 10^8 multiplied by 10^10 is 10^18.

[krakxn]

Uhm okay, next time it would be helpful for others if you specify in your issue to explain it as simply as possible. I will explain as simple as possible below.

Put simply, 10^18 is 1 ETH worth of Wei. Okay? Because we transact in Wei mostly. And different protocols follow different conventions for decimals. Chainlink follows 8 decimals, Ethereum follows 18 decimals. So, we are getting our ETH price from Chainlink, (a different protocol) which follows 8 decimals. So, our price is 10^8. And we are using Ethereum, which follows 18 decimals. So, we have to multiply price by 10^10. Which, in maths, is "10^10 multiplied by 10^8 which results in 10^18" and voila, we get the Ethereum convention of 18 decimals, that is, Wei.

This cannot get much simpler than this so you will have to bear with me here. All the best.

[TimeKeyRoll]

Thank you very much. Now it's easily understandable. :)

[krakxn]

Awesome!