A satoshi is the smallest unit of Bitcoin. It is the equivalent of a hundredth of a millionth BTC or with 100 million satoshis per Bitcoin. This denomination was named after the mysterious creator of Bitcoin, Satoshi Nakamoto, whose true identity remains unknown to this day.
Satoshis, or Sats, are divisible down to eight decimal places allowing Bitcoin to be divided much more than traditional currencies. In terms of Bitcoin transactions, satoshis represent the smallest unit that can be sent. Small amounts of Bitcoin are typically denominated in satoshis, especially in terms of fees.
Sending transactions with small amounts of satoshis ensures less network fees and faster confirmation times. The term “satoshi” was chosen to honor the inventor of Bitcoin. The purpose of its high divisibility is to offer transactions in the smallest amounts. This even gets more important as Bitcoin continuosly rises in value.