Jan 23, 2019 23:20 UTC
Jan 23, 2019 at 23:20 UTC
What Is Satoshi in Bitcoin?
So, you are well aware or are maybe using some kind of national currency such as INR, USD, EUR, or GBP.
Some national currencies, like USD, have a ‘cent,’ that is 1/100 part of the currency.
Similarly, in the world of bitcoin, there are very small units – Satoshi.
Satoshi is the smallest unit of Bitcoin. It is named after the creator of the protocol, Satoshi Nakamoto, used in blockchain and the cryptocurrency.
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Satoshi in Bitcoin
Different from the physical versions of global currencies, like USD and British Pound, cryptocurrencies predominantly exist in the virtual world.
In spite of this difference, a digital currency can be divided into smaller units, just as the Dollar is broken into cents, and pound into pence.
In the case of Bitcoin, the smallest unit available is called the Satoshi.
White Paper Published by Satoshi Nakamoto
The Satoshi unit is named after the Bitcoin creator, Satoshi Nakamoto, the anonymous person or group of people who published the white paper in 2008 that jump started the development of the digital currency.
The white paper, named “Bitcoin: A Peer-to-Peer Electronic Cash System”, articulated the use of a P2P network as a solution to double-spending issues.
The problem of double-spending is not found in physical currencies, as a physical bill can only exist in one place at a single time. Though it initially occurred as Bitcoin Double Spending too, Bitcoin solved it like a pro.
Since digital currency doesn’t exist in physical form, using it in a transaction doesn’t remove it from someone’s possession.
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Satoshi – Bitcoin Unit
Satoshi shows up one hundred millionths of a bitcoin. Small denominations make transactions on Bitcoin network easier to conduct, extremely fine and readable.
A general unit structure of Bitcoin has 1 BTC equivalent to 1,000 mBTC (millibitcoins), 1,000,000 μBTC (microbitcoins), or 100,000,000 satoshis.
While the exact figure to this is yet unknown, it is measured that Satoshi Nakamoto may possess 1 million bitcoins, which is equivalent to 100,000,000,000,000 satoshis.
While not exactly a part of a major currency pair, bitcoins can be converted to and from other currencies. Bitcoin exchanges exist for allowing people to conduct their transactions.
This is something that involves depositing pounds, dollars, or other supported currencies into an account in one of the exchanges, where the overall balance can be utilized to either buy or sell bitcoins using Coinbase or any other exchange and ultimately convert them into other currencies.
Just like with the exchange rates between the well-established currencies, the bitcoin value will fluctuate in accordance with the supply and demand.
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Lack of Physical Bitcoins
Where people may keep a penny or pence in their pockets, the physical form of cryptocurrencies like Bitcoin, as of now, haven’t become as mainstream.
This is primarily for practical reasons since the main bitcoin draw is that it is digital and almost impossible to counterfeit.
Not having a physical presence for Bitcoin means that it is more secure, even before the Blockchain technology is taken into consideration.
Another reason for the lack of physical bitcoins is that they are not widely-accepted in a regular transaction.
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