Satoshi vs. MilliSatoshi (mSats)

Satoshi and milliSatoshi (mSats) are both units of measurement used in the Bitcoin network. They represent smaller divisions of a Bitcoin, which is the primary unit of currency.

Satoshi: This is the smallest unit of Bitcoin. There are 100 million satoshis in one Bitcoin. Think of it like a penny to a dollar.

MilliSatoshi (mSats): As the name suggests, a milliSatoshi is one-thousandth of a Satoshi. It's a much smaller unit, often used in microtransactions or when dealing with very small amounts of Bitcoin.

To summarize:

* 1 Bitcoin = 100 million satoshis

* 1 Satoshi = 1,000 milliSatoshis

Why use mSats?

Micro-transactions: mSats allow for very small transactions, which are essential for certain use cases like paying for small items or services.

Lightning Network: The Lightning Network, a layer-2 scaling solution for Bitcoin, often uses mSats to facilitate fast and low-cost transactions.

In essence, satoshis and mSats provide flexibility in representing different values of Bitcoin, allowing for both large and small transactions within the network.

#ask #nostr #plebchain #learnstr