Sats

Sats, short for Satoshis, are the smallest unit of Bitcoin, named after its pseudonymous creator, Satoshi Nakamoto. One Bitcoin is divisible into 100 million Satoshis (0.00000001 BTC), making Sats an essential concept for microtransactions and smaller exchanges. This granular breakdown of Bitcoin allows for greater flexibility in transactions, especially as Bitcoin's value increases. Instead of dealing with fractions of a Bitcoin, users can trade in whole Satoshis, making the cryptocurrency more practical for everyday use.

The use of Sats is particularly beneficial in scenarios where small-value transactions are common, such as tipping content creators, paying for services, or participating in micro-purchases. As Bitcoin's price has grown over the years, smaller denominations like Sats have gained prominence, enabling users to engage with Bitcoin without needing to handle complex decimal fractions. This also makes Bitcoin more accessible to new users who may be intimidated by the high price of a single Bitcoin.