Satoshi: The Smallest Unit of Bitcoin
A satoshi is one one-hundred-millionth of a bitcoin and is the smallest amount recorded on Bitcoin's base layer. Understanding satoshis helps explain Bitcoin's divisibility, small payments, and the even smaller unit used on the lightning network.
What is a satoshi?
A satoshi is the smallest unit of Bitcoin and equals one one-hundred-millionth of a bitcoin, or 0.00000001 BTC. 1 bitcoin equals 100 million satoshis. The unit is named in honor of Bitcoin's pseudonymous creator, Satoshi Nakamoto, and is commonly abbreviated as sat. Smaller Bitcoin amounts are often expressed in satoshis.
Why satoshis are needed
Bitcoin's divisibility into satoshis makes small payments practical. Under the current protocol, the smallest amount that can be recorded on the base layer is 1 satoshi and cannot be divided further. Although many platforms display amounts converted into bitcoin, blockchain records use satoshis as their basis. Users can therefore send and receive payments without holding a whole bitcoin.
Smaller and alternative denominations
lightning network payment channels can denominate amounts in millisatoshis. A millisatoshi equals one part out of 100000000000 parts of a bitcoin. Bitcoin can also be expressed as millibitcoin (mBTC) and microbitcoin (μBTC), which respectively equal one one-thousandth and one one-millionth of a bitcoin. A future protocol update could support finer divisions.
Original tutorial
https://www.binance.com/zh-CN/academy/glossary/satoshi
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