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Satoshi

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What is a Satoshi?

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:

Importance of 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.

Other Bitcoin Denominations:

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.

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