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Onchain Economics
Infrastructure

Satoshi(sat)

The smallest unit of Bitcoin, equal to 0.00000001 BTC (one hundred millionth of a bitcoin).

In-Depth Explanation

Named after Bitcoin's creator, satoshis (sats) enable precise pricing and microtransactions. With 100 million sats per bitcoin, even expensive BTC remains divisible for small purchases. 'Stacking sats' became a meme for accumulating Bitcoin. Lightning Network payments are often denominated in sats.

Related Terms

Bitcoin

BTC

The first and largest cryptocurrency, created by Satoshi Nakamoto in 2009 as a peer-to-peer electronic cash system.

Lightning Network

A Layer 2 payment network built on Bitcoin that enables fast, low-cost transactions through payment channels.

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Gas Fees

Transaction fees paid to validators/miners for executing operations on a blockchain.

Gwei

A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.

Layer 2

L2

Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.

Layer 1

L1

The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.

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