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Crypto Dictionary

Satoshi

Definition

The smallest unit of Bitcoin, equal to 0.00000001 BTC.

Deep Dive

A Satoshi, often abbreviated as "sat," is the smallest divisible unit of Bitcoin (BTC), named after the anonymous creator of Bitcoin, Satoshi Nakamoto. One Satoshi is equivalent to one hundred-millionth of a Bitcoin, or 0.00000001 BTC. This granular denomination allows for micropayments and extremely precise transactions within the Bitcoin network, making it suitable for a wide range of economic activities that might not require full Bitcoin units.

Examples & Use Cases

  • 1Buying a coffee using the Bitcoin Lightning Network where the payment might be 5,000 sats instead of 0.00005 BTC.
  • 2Receiving a small tip for content creation or a task, often paid in a few hundred or thousand sats.
  • 3Displaying exchange rates on crypto platforms in "sats per dollar" to provide a more relatable value for smaller amounts of Bitcoin.

Related Terms

Bitcoin (BTC)MicrotransactionGwei

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