DEFINITION of ‘Satoshi’
The smallest unit of the bitcoin cryptocurrency. Satoshi is named after Satoshi Nakamoto, the creator of the protocol used te block chains and the bitcoin cryptocurrency.
Cracking DOWN ‘Satoshi’
Unlike the physical versions of global currencies, such spil the British pound or U.S. dollar, cryptocurrencies predominately exist te the digital world. Despite this difference, a cryptocurrency can be divided into smaller units, just spil the pound is violated into pence and the dollar into cents. Te the case of bitcoins, the smallest unit available is called the satoshi.
The satoshi unit is named after Satoshi Nakamoto, published a paper ter 2008 that jumpstarted the development of the bitcoin cryptocurrency. The paper, “Bitcoin: A Peer-to-Peer Electronic Specie System”, described the use of a peer-to-peer network spil a solution to the problem of double-spending. The problem – that a digital currency or token can used te more than one transaction – is not found ter physical currencies, spil a physical bill or coin can, by its nature, only exist ter one place at a single time. Since a digital currency does not exist ter the physical space, using it ter a transaction does not eliminate it from someone’s possession.
The satoshi represents one hundred millionth of a bitcoin. Petite denominations make bitcoin transactions lighter to conduct. The general unit structure of bitcoins has 1 bitcoin (BTC) omschrijving to 1,000 millibitcoins (mBTC), 1,000,000 microbitcoins ( BTC), or 100,000,000 satoshis. While the precies figure is unknown, it is estimated that Satoshi Nakamoto may wield 1 million bitcoins, omschrijving to 100,000,000,000,000 satoshi.
While not part of a major currency pair, bitcoins can be converted to and from other currencies. Bitcoin exchanges exist te order to permit individuals to conduct transactions. This involves depositing dollars, pounds, or other supported currencies into an account te one of the exchanges, where the balance can be used to buy or sell bitcoins and ultimately convert them into other currencies. Just spil with the exchange rates inbetween established currencies, the value of bitcoins will fluctuate according to supply and request.
While individuals may keep a penny or pence te their pockets, physical versions of cryptocurrencies like bitcoin have not become spil mainstream. This is primarily for practical reasons, since the main draw of bitcoin is that it is digital and hard to counterfeit. Not having a physical presence means that bitcoins are more secure, even before the block chain technology is taken into consideration. Another reason for the lack of physical bitcoins (and santoshi) is that bitcoins are not widely-accepted te day-to-day transactions.