$SATS SATS has two meanings, and their application scenarios differ:

1. SATS (Satoshis) as a unit of measurement
This is the smallest unit of Bitcoin, 1 BTC = 100,000,000 SATS.

· Application: Mainly used for small transactions, pricing, and lowering the barrier for new users to understand. It makes Bitcoin's payment capabilities more granular, similar to using "cents" for "yuan." However, this is not currently a hot topic in the ecosystem discussion.
2. SATS as the BRC-20 token in the Ordinals protocol
This is currently the hottest "SATS," full name SATOSHI NAMIMOTO, created on the Bitcoin chain in March 2023 according to the BRC-20 standard as a fungible token.

In the thriving Bitcoin ecosystem, SATS has already spawned the following applications:
1. Trading and speculation
· This is the primary and most direct use. On major exchanges supporting the Bitcoin ecosystem (such as Gate.io, OKX, Bybit) and decentralized trading platforms (like Unisat, Magic Eden), SATS is one of the BRC-20 tokens with the highest trading volume, serving as an important tool for users to participate in Bitcoin ecosystem hype and liquidity.
2. As an "pricing/exchange medium" and "liquidity pool fundamental asset" within the ecosystem
· In some emerging Bitcoin Layer 2 and DeFi protocols, SATS are increasingly used as trading pair components due to their high liquidity and consensus. For example, in some DEXs settled on Bitcoin, you can exchange SATS for other BRC-20 tokens or Ordinals NFTs.
· It is used as one of the foundational assets providing liquidity, participating in AMM pools.
3. As a "voucher" or "fuel" for ecosystem participation and interaction
· Some new projects built on Bitcoin (such as certain Layer 2 networks, social applications, and games) use holding SATS as a credential to participate in airdrops, obtain whitelist access, or enjoy specific services.
· In the future, as the Bitcoin DeFi ecosystem matures, SATS may be used as staking assets, collateral for lending, etc.
4. Payments and tipping
· Within small communities, SATS have been used for payment services, tipping creators, or purchasing goods. For example, merchants or individuals supporting the Bitcoin Lightning Network and Ordinals may accept SATS payments. However, this is far from becoming a mainstream payment method.
5. A bridge connecting traditional finance and the Bitcoin ecosystem

· Due to the high visibility and liquidity of SATS, it has become the first entry point for many traditional crypto users to access and understand the Bitcoin Ordinals ecosystem. By trading SATS, they naturally start using Ordinals wallets, learning about inscription, and viewing on-chain data.