A satoshi is the smallest unit of Bitcoin, the revolutionary cryptocurrency. This name pays homage to the enigmatic creator of Bitcoin, Satoshi Nakamoto. One Bitcoin can be divided into an extremely large number of satoshis, showcasing the flexibility of this digital currency for handling transactions of minimal values. The ratio is 100 million satoshis to one Bitcoin, making 1 BTC equivalent to 100,000,000 satoshis.
The purpose of satoshis is to enable the measurement of fractional values of Bitcoin. When you wish to send or receive smaller amounts of Bitcoin, specifying the value in satoshis has become a common practice. This unit makes extremely precise transactions feasible and is ideal for microtransactions, small purchases, and various other use cases involving tiny fractions of Bitcoin.
In summary, the satoshi is the smallest subdivision of Bitcoin, playing a pivotal role in the versatility and usability of this cryptocurrency. Its existence facilitates transactions involving minuscule fractions of the digital currency, making it applicable in a wide range of financial and economic scenarios.