What Is a Satoshi and What Makes Up Bitcoin

A satoshi (sat) is the smallest unit of Bitcoin. One Bitcoin equals one hundred million satoshis. The name comes from the pseudonym of Bitcoin's creator, Satoshi Nakamoto.

Why satoshis exist

When the Bitcoin price is high, talking about small amounts in satoshis is far more practical than using fractions of a BTC. Network fees and small wallet balances are usually quoted in satoshis.

How Bitcoin works technically

Bitcoin runs on a blockchain: a chain of blocks, each containing a set of transactions. New blocks are added roughly every ten minutes. Miners compete for the right to record the next block and receive a Bitcoin reward for doing so. The total supply cap is fixed in the protocol code and no authority can change it.

Why the cap matters

A fixed supply makes Bitcoin a deflationary asset. The closer the circulating supply gets to the cap, the fewer new coins enter circulation. Every four years the miner reward is cut in half. This is called the halving.

How this shows up in a swap

When you swap Bitcoin, the amount you receive is calculated in BTC down to the satoshi. If the number looks like a tiny decimal, that is thousands or millions of satoshis. No mystery, just a different unit of the same coin.