What is Satoshi?
Satoshi is a small fraction of a Bitcoin. It acts as an analog of a cent in BTC. Interestingly Satoshi Nakamoto commonly referred to a part of Bitcoin as a cent, but the community decided to name the fraction of the coin in honor of its creator.
Satoshi is used in the source code of Bitcoin for calculations. The end result that is displayed to users is then converted to BTC for readability. Satoshi is also used to display value when dealing with very small amounts of BTC, such as a Bitcoin faucet rewards.
How many Satoshis are in one Bitcoin?
The minimum transmitted value (the smallest fraction) of a Bitcoin equals to 10-8 bits. In other words, one BTC is equal to 100 000 000 Satoshi.
Benefits of Satoshi for end users
Satoshi allows for small financial transactions that would not be possible without it. For example, to invest in BTC one does not have to purchase a whole coin at a price of thousands of USD, but instead, buy a small part of it. Thanks to Satoshi one is also able to transfer small amounts of funds, such as tens of USD equivalent in BTC, which would be otherwise impossible due to a very high exchange rate of Bitcoin.