Glossary

Satoshi

Plain-language definition Crypto glossary

Key takeaways

A satoshi is the smallest divisible unit of bitcoin, with one bitcoin equal to 100 million satoshis, so a satoshi is 0.00000001 BTC.
Satoshis let very small and precise amounts be sent and priced, and the unit is named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.
Layer-2 systems such as the Lightning Network operate in satoshis and even smaller units to enable tiny, low-cost payments.

Definition

A satoshi is the smallest divisible unit of bitcoin. One bitcoin equals 100 million satoshis, so a satoshi is 0.00000001 BTC.

How it works

Because a whole bitcoin can represent a large amount of value, satoshis allow very small and precise amounts to be sent and priced. The unit is named after Satoshi Nakamoto, Bitcoin’s pseudonymous creator. Other cryptocurrencies have their own smallest units defined by how many decimal places their protocol allows. Layer-2 systems such as the Lightning Network operate in satoshis (and even smaller units) to enable tiny, low-cost payments.

Why it matters

Satoshis make bitcoin practical for small transactions and fine-grained pricing without needing to deal in fractions of a whole coin. As interest in small denominations has grown, prices are increasingly quoted in “sats.”

Example

Sending 50,000 satoshis is the same as sending 0.0005 bitcoin, just expressed in the network’s smallest unit.

FAQ

Frequently asked questions

How many satoshis are in one bitcoin?

One bitcoin equals 100 million satoshis, so a single satoshi is 0.00000001 BTC. This division lets a whole bitcoin, which can represent a large amount of value, be broken into very small, precise amounts.

Where does the name "satoshi" come from?

The unit is named after Satoshi Nakamoto, Bitcoin's pseudonymous creator. As interest in small denominations has grown, prices are increasingly quoted in "sats."

Why do satoshis matter for everyday payments?

They make bitcoin practical for small transactions and fine-grained pricing without dealing in fractions of a whole coin. Layer-2 systems like the Lightning Network operate in satoshis and even smaller units to enable tiny, low-cost payments.