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layers), which are built on top of the main chain, are used on <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchains as scaling solutions. 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As a result, a blockchain's vulnerability cannot be transferred to another. <strong>Plasma</strong> for Ethereum and Liquid for Bitcoin are both examples of sidechains.</p>\n<p><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-interoperability/">Interoperability&nbsp;refers to the <strong>capacity to see and share data from several blockchains</strong>. It's advantageous since it allows you to trade assets across various blockchains without the use of a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-centralized-exchange-cex/">centralized, custodial exchange</strong></a>. Interoperability allows users to transact across different platforms, which helps blockchain growth.</p>\n<p>Rollups (particularly an <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-optimistic-rollup/">optimistic rollup</strong></a>) seem to be <strong>the most promising scaling solution for Ethereum</strong>. An optimistic rollup is a sort of scaling solution that uses off-chain computation to record transactions in a trustworthy manner. A great example of an optimistic rollup is Optimism.</p>\n<p>Though the ultimate scaling solution for Ethereum or other <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-stake-pos/">PoS blockchains would be <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-sharding/">sharding. It involves separating the network into different <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-shard/">shards, each of which is assigned a particular task. This improves the network's efficiency and output because it raises the transaction load capacity.</p>\n<p>Lastly, talking about <strong>alternative cryptographic systems</strong>, they help to minimize the number of transactional data recorded on a blockchain. This data includes <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-multi-signature-multi-sig/">multi-sigs, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-ring-signature/">ring signatures</strong></a>, Schnorr or Threshold signatures, and so on.</p>","level":"medium","meta_title":"What is Scaling Solution? 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This means that all of the information such as the transaction volume, and users' addresses are shielded from outsiders. However, the exception is transferring funds from <strong>Sprout</strong> to Sapling shielding addresses, and vice versa.</p>\n<p><a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/zcash/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Zcash</strong></a>, for example, distinguishes between transparent and shielded addresses. Shielded addresses are not the same as transparent addresses. They're similar to the <a href=https://www.bitdegree.org/"/crypto/buy-bitcoin-btc/">Bitcoin protocol's public addresses though. Transparent addresses cooperate with the Transparent Value Pool. It controls the exchange data that is publicly shown, also enabling it to be seen on the Zcash blockchain at any given time.</p>\n<p>Senders to a shielded address can also select whether or not to include <strong>an encrypted note.</strong> The sender's address is hidden on the transaction receipt in their <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-wallet/">wallet, and the receivers can only see the amount or an encrypted memo delivered to their address.</p>\n<p>Additionally, shielded addresses are obligated to generate <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-zk-snarks/">zk-SNARKS, to make sure the transaction is valid.</p>\n<p>All in all, shielded addresses successfully achieve a higher level of privacy and security, differently than transparent ones.</p>","level":"easy","meta_title":"What is Shielded Transaction? 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Handbook Cover Page
Crypto Terms: Letter S

What is Satoshi (SATS)?

Satoshi (SATS) MEANING:
Satoshi (SATS) - Bitcoin’s smallest unit with the value of 0.00000001 BTC.
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1 minute

Let's find out Satoshi (SATS) meaning, definition in crypto, what is Satoshi (SATS), and all other detailed facts.

Satoshi (SATS) is Bitcoin’s smallest available unit with a value of 0.00000001 BTC. It is named after the pseudonymous inventor of BTC Satoshi Nakamoto. Satoshi (SATS) is also referred to as satoshis (the plural form), SAT, or even just S.

It was proposed that a satoshi could be used to refer to one-hundredth of a BTC at first, but the crypto community eventually agreed that it should be used to refer to one hundred millionth of a BTC.

It's essential for BTC to be so divisible. Since 0.10 BTC can be valued at millions of dollars, limiting it to only two decimal places would make BTC unsuitable for regular use. When it comes to paying transaction fees and making micropayments, smaller fractions are a necessity.
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