Satoshi (SATS) are the smallest unit of Bitcoin, equivalent to one hundred millionth of a bitcoin (0.00000001 BTC). Named after Bitcoin's creator, Satoshi Nakamoto, SATS makes it possible to conduct transactions with small Bitcoin amounts, enhancing its practicality for daily use. Their introduction has enabled microtransactions, facilitating new monetization opportunities for content creators and allowing for precise pricing in BTC for various goods and services.
SATS has made Bitcoin investment more accessible, overcoming the obstacle of Bitcoin's high value and encouraging broader participation in the cryptocurrency market. They also provide a way for newcomers to familiarize themselves with Bitcoin through small-scale transactions.
The capped supply of Bitcoin at 21 million units underscores the scarcity and potential value appreciation of SATS. They are stored in digital wallets and can be traded on cryptocurrency exchanges, playing a key role in bridging traditional finance and the cryptocurrency world, and are instrumental in the development of decentralized finance (DeFi) and applications like the Lightning Network.
