What is a Satoshi (Sats)?
A satoshi (commonly abbreviated as sats) is the smallest denomination of the cryptocurrency bitcoin (BTC). Its value is equal to 100 millionth of a bitcoin or 0.00000001 BTC.
The Long Definition
Satoshi is the smallest denomination of Bitcoin. This means that it is the smallest acceptable unit that BTC on the Bitcoin blockchain can be split into. It exists to facilitate smaller, everyday transactions.
The satoshi (sats) is named after Satoshi Nakamoto, the anonymous person(s) who created Bitcoin and its blockchain. One sat is worth 100 millionths of a Bitcoin.
Understanding the System
Bitcoin was originally created to power peer-to-peer (P2P) transactions. The whitepaper introduced it as “Bitcoin: A Peer-to-Peer Electronic Cash System.” Users of this system could send funds directly to one another without going through a middleman.
Ideally, this would involve everyday transactions, like buying a coffee or a pizza. But there is a problem.
Over the years, the value of BTC has increased almost exponentially. At the time of writing, one bitcoin is worth around $25,000. At one point, it was worth well over $60,000.
Not a lot of transactions cost that much. This has made it difficult to quote the cost of certain Bitcoin transactions. As a result, there is a need for smaller denominations for smaller transactions. The smallest of these is the satoshi (sats). There are around 100 million sats in one Bitcoin.
Is it Possible to Buy a Satoshi?
Yes. You can buy a satoshi on several different platforms. These include centralized crypto exchanges like Binance and Coinbase, which let you make purchases with fiat or swap other crypto assets.
Also, you can use decentralized exchanges (DEXs) like Uniswap and Pancakeswap, peer-to-peer (P2P) platforms like AgoraDesk, and over-the-counter (OTC) desks like Genesis Trading.
Lastly, you can purchase them at any Bitcoin ATM.