Definition of ‘Satoshi’ - What is satoshi? The satoshi is the smallest unit of the cryptocurrency bitcoin. It is named after Satoshi Nakamoto, the founder(s) of the protocol used in blockchains and the bitcoin cryptocurrency.
What is Satoshi?
A Satoshi is the smallest unit of Bitcoin, as in the least entity that Bitcoin can be broken into. Like a dollar has quarters, some tokens have smaller units in the crypto world. For Bitcoin, it is the Satoshi.
In 2008, a white paper titled 'Bitcoin: A Peer to Peer Electronic Cash System' was published. Before that time, the idea of cryptocurrencies was plagued with the menace of double-spending. The author(s) suggested that peer-to-peer transactions were the way out and Bitcoin was the vehicle in the paper. The identity of the author(s) did not reveal anything more than a name: Nakamoto Satoshi.
Named after the author(s) of the publication, a Satoshi is a Bitcoin to it's 100 millionth, which means that 1 Bitcoin is equivalent to 100 million Satoshi. Aside from making simple trades easier, it is easier to understand the currency exchange when using Satoshi for small trades.
The history of Satoshi
Of a fact, the name Nakamoto Satoshi is still held as a falsified identity to date. Dan Kaminsky, an expert in security research who studied the Bitcoin code, suggested that Satoshi could even be a team instead of the popular belief that he is a person. In the Bitcoin codes, there are words such as "color" and "gray", which also suggests that Satoshi could be a made up name for either an English or someone from a Commonwealth nation. However, all these are speculations at their best and all we have are just clues. The fact remains that Nakamoto Satoshi pioneered Bitcoin and has a denomination of the currency in his name.
How do you use Satoshi?
Just like other cryptocurrencies, Satoshi can be traded for items or other crypto tokens. You can deposit Fiat money into your account registered on any exchange platform and have it converted to Satoshi. Although, at the moment, Satoshi doesn't form a major trading pair; it can be used on merchant platforms that accept them in payments.
How much is 1 Satoshi worth in the crypto market?
1 Satoshi is worth 000 000 00.1 Bitcoin or 1 Bitcoin is worth 100,000, 000 Satoshi. This shows that the actual price value of Satoshi would depend on the market value of a Bitcoin. As the price of Bitcoin increases or decreases, so would the worth of a Satoshi. How do you know the worth? You will divide the market value of one Bitcoin by a hundred million. For instance, as at 22nd of January 2022, 1 Bitcoin was equivalent to $34, 832.30. The worth of a Satoshi at this rate would be 0.000348323 in US dollars. Let's assume that you want to convert 10,000 Satoshi to dollars, you'd have to multiply the amount of Satoshi by the rate of one Satoshi to a dollar. Doing that, at the current market rate you'd have $3.48323.
Is Satoshi a billionaire?
After the initial launch of the Bitcoin software version 0.1 on SourceForge along with a network in January 2009, Satoshi worked with a number of developers on the software till the mid part of 2010. He modified the source code himself before transferring the network alert key and source code repository to a member of the Bitcoin community, Gaven Andresen. He also distributed other sections of the domain to some influential members of the community, before he ceased working on the project directly. However, he didn't relinquish direct control without having about 700,000 to 1.1 million Bitcoins to himself. That would make him billions of dollars rich without a particular amount, depending on the prevalent dollar to Bitcoin rate.
Is a Satoshi equivalent to a Wei?
A Satoshi is different from a Wei and they vary in value. Just like Satoshi, Wei is the smallest indivisible unit of an Ether. Ether is worth 1,000, 000,000,000,000,000 or 1018 or one quintillion Wei. Its actual value in US dollars would depend on the prevalent dollar value of Ether at the time in question. The Wei is also the Gwei which is also a denomination used in Ethereum. One Ether is worth 1 billion Gwei. As you've seen, Satoshi is different from Wei; they vary in rates and derivation.
Who is Nakamoto Satoshi?
Although Satoshi has expertly hid his information about his person, he gave few hints about himself when he updated his profile on his P2P Foundation in 2012. In the update, he claimed to be a 37-year-old residing in Japan. For someone who has remained cryptic about most of his life, not everyone would believe his self-declared identity.
Nakamoto Satoshi is believed by many people to be a group of people, rather than an individual. When Laszlo Hanyecz emailed Nakamoto, Laszlo confessed about the superfluity of Nakamoto's written code, suggesting that it was too perfect for a single person to put together.
Several persons have been speculated to be Nakamoto and the speculations may just be right, due to the facts that back them up. Hal Finney, a cryptographer and one of the first persons, other than Nakamoto to use the Bitcoin platform or make improvements on it. Having received emails from Nakamoto, it was concluded that he was not Nakamoto but he was involved with him. Finney died in 2014.
A few blocks away from Finney's house was a man named Dorian Nakamoto Satoshi. He is a Japanese American, whose similar name enticed the attention of the media. He worked as a computer engineer for technology and financial data firms and did some classified tasks for the army which is also a clue. However, in the heat of the investigation, the P2P Foundation made an update for the first time in about half a decade. The message was short, "I am not Dorian Nakamoto." Dorian, however, denied all claims suggesting that he was the founder of Bitcoin.