The world of cryptocurrencies and digital currencies increasingly expands the vocabulary of the world, both in economic language and in programming, technologies and has even invaded the colloquial dialect. That is why it has become necessary to learn how some newly terms work. One of them is the word “satoshi.”
A satoshi is nothing other than the minimum unit of measure that can be used in the Bitcoin system. It is the smallest fractional unit into which a bitcoin can be divided and is expressed as 0.00000001.
It is also the most used unit in the Bitcoin cryptocurrency market since, just like a dollar can be divided into 100 cents, a bitcoin can be divided into 100,000,000 satoshis allowing exchanges with balances of up to eight decimals.
His name is intended to pay tribute to the alleged creator of the Bitcoin system, Satoshi Nakamoto; which is wrapped in an air of mystery because the real name or even the face of the person (or people) who hold this “name” is unknown.
This title for the smallest divisible unit of a Bitcoin, was first coined by the user Ribuck in the BitcoinTalk forum, specifically on November 15, 2010. However, it would not be until 2011 when the other users will consider the term, and even more important, that a discussion be triggered on how much a Bitcoin could be divided.
The result of the debate was that Bitcoin could be divided into 100,000,000 of satoshis, resulting in the way in which exchanges of this cryptocurrency are made today. All this thanks to the proposal of a user called Marcus_of_augustus.
At that time perhaps that great divisible capacity seemed exaggerated, however, today, due to the price of Bitcoin in the market, it is very difficult to acquire an entire Bitcoin unit, and that is where satoshi comes in as a unit of measure which adapts to any type of transaction and with an accuracy even greater than the units of measure of conventional currencies.
There are other units of measure for Bitcoin, however, all of them are in turn related to Satoshi.
BITs: It is a unit of measurement widely used in the world of cryptocurrencies where 100 Satoshis is equal to 1 BIT and is expressed as follows: 0.00000100 bitcoins.
mBTC: This unit is used by many exchanges and: 100,000 Satoshis is equal to 1 mBTC and is expressed as follows: 0.00100000 bitcoins.
cBTC: Finally, we have the cBTC whose equivalence is given by: 1,000,000 of Satoshis is equal to 1 mBTC and is expressed as follows: 0.01000000 bitcoins.
Benefits of using Satoshis
Satoshi arrived with the intention of making the daily operations of users and those who are starting in the cryptocurrency market easier. It is important to note that historically we have been accustomed to using integer values in our commercial operations, so it is not surprising that we find it easier to buy integer values of a good, than decimal values, that is, it is easier to say that we want to exchange 10,000 Satoshis to say that we want to buy 0.00010000 Bitcoin.
Satoshi as a reward
There are a number of creators of online games, especially for mobile, that offer satoshis as prizes to their players either for reaching a specific goal, perform a certain action or simply by downloading the game or application in question. There are even applications that simulate slot machines that work with satoshis as payment currency.