A satoshi is the smallest unit of Bitcoin, named after its creator, Satoshi Nakamoto. It represents one hundred-millionth of a Bitcoin (0.00000001 BTC). Here are the key details about satoshis:
Divisibility:
Essential for Bitcoin’s function as a global medium of exchange, allowing transactions in very small fractions of Bitcoin.
Usage:
- Primarily used to display small transactions or balances on platforms.
- All amounts on the blockchain are denominated in satoshis.
Further Subdivision:
Although currently not divisible beyond 1 satoshi, the protocol could be updated for further subdivisions if needed.
Millibitcoin (mBTC): Equals one-thousandth of a Bitcoin (0.001 BTC).
Microbitcoin (μBTC): Equals one-millionth of a Bitcoin (0.000001 BTC).
Satoshis facilitate precision in transactions and calculations within the Bitcoin network, enhancing its usability as a digital currency.