frontrunbitcoin on Nostr: Satoshi vs. MilliSatoshi (mSats) Satoshi and milliSatoshi (mSats) are both units of ...
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
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