Wei, Satoshi, Jager And Various Other Denominations Of Ether, Bitcoin, Bnb And More

Most fiat currencies have a divisibility of up to 2 decimal places ($0.01). However, since many cryptocurrencies have a supply cap, they have a divisibility of up to 8 decimal places or more (.000000001 ETH). This ensures that even when the supply limit of these cryptocurrencies is reached and/or their valuations skyrocket, it is still possible for anyone to own a certain amount of the token.

Let’s take a look at some of the smaller denominations of common cryptocurrencies and their usefulness.

Bitcoin

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Bitcoin has a fixed supply of 21 million bitcoins, of which 18.5+ have already been mined. Additionally, 1 BTC is currently trading at around $22,000. However, its all-time high so far is around $69,000.

With such scarce supply and such high valuations, how can Bitcoin become the future global currency? The answer is simple: denominations. Instead of owning whole bitcoins, users can buy fractions of BTC, the smaller of which is known as satoshi or SAT (named after its pseudonymous creator).

One satoshi is worth 0.00000001 BTC. One decimal point above satoshi is finney (0.0000001 BTC), after which comes microBitcoin (0.000001 BTC). This is followed by milliBitcoin (0.001 BTC), centiBitcoin (0.01 BTC) and deciBitcoin (0.1).

Satoshi are usually distributed in faucets, where users complete small tasks to earn free crypto. You can keep performing these tasks and collecting SATs until you have a significant amount of BTC.

Ethereum

Ethereum’s total supply is not limited like Bitcoin. However, it still offers extremely small denominations to ensure that any amount can be exchanged. These small denominations are also used to pay transaction fees on the Ethereum network.

One of the smallest amounts of ETH you can buy is known as gwei, which equals 0.000000001 ETH. If you paid 0.000000020 ETH as a transaction fee, you would say that the transaction cost you 20 gwei.

However, gwei is not the smallest denomination of ETH; this distinction comes down to a unit known as wei. An ETH can be divided into

100,000,000,000,000,000 wei. Interestingly, wei was named after Wei Dai, the founder of b-money, Bitcoin’s predecessor.

Wei is also used as a unit of measurement for several other ETH denominations. For example, one kwei equals 1,000 wei, one mwei equals one million wei, and one gwei equals one billion wei.

Other denominations in the world of cryptography

Besides Bitcoin and Ethereum, several other popular cryptos have tiny denominations. For example, Binance’s smallest unit (BNB) is known as a jager, which equals 0.00000001 BNB. The name behind this unit of BNB comes from the Telegram handle of a Binance Community Manager.

This person was one of the first angel investors in the project and became a Binance Community Manager. At the time, the individual’s Telegram handle was simply “Jager”, which Binance co-founder Changpeng Zhao (CZ) decided to name the smallest unit of BNB.

On the Ripple (XRP) blockchain, the smallest unit of an XRP is a drop. One drop equals one million XRP. The name plays in the metaphor of drops, rain and ripples. Lovelace is the smallest unit of Ada, the native currency of Cardano. It was named after the 19th century mathematician Ada Lovelace, called the first female computer programmer.

For now, gwei, SATs, jager and the other smaller denominations don’t have much use. However, as the value of cryptocurrencies increases in the future, these smaller units will surely come into play. They will also ensure that everyone can grab a piece of the crypto pie when circulation limits are known and that no new coins are minted.

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