Understanding Sats vs KB: Converting Between Ethereum’s Unit of Measurement
When it comes to cryptocurrency, understanding the different units used to measure fees and transactions can be overwhelming. Two commonly confused units are satoshis (sats) and kilobytes (KB). In this article, we’ll break down the difference between sats/byte and BTC/kB, helping you convert between these units with ease.
Bitcoin Core’s Fee Display
In Bitcoin Core, the fee is displayed in a unit of Bitcoin (BTC), specifically per kilobyte. This means that if someone pays a transaction fee using Bitcoin Core, it will be expressed as $0.0001 BTC per kilobyte. For example, a transaction might cost 10 sats to send.
Block Explorers’ Fee Display
However, block explorers use a different unit of measurement for fees: satoshis (sats)/byte. In this system, the fee is displayed in units of satoshis per byte. This means that if someone pays a transaction fee using a block explorer, it will be expressed as 0.001 sats/byte.
Converting Between Units
To convert between these units, we need to understand their conversion rates:
- 1 kilobyte (KB) = 1024 bytes
- 1 byte = 8 bits
Using these conversion rates, we can calculate the equivalent fee in each unit.
For example, let’s say a transaction costs $0.01 BTC and 5 KB of network bandwidth.
In Bitcoin Core:
- 5 KB x 1000 bytes/KB = 5000 bytes
- Fee: 0.0001 BTC per byte x 5000 bytes = $0.005 BTC
Using the satoshis/byte conversion rate, we can convert this fee to sats:
- 0.005 BTC x 100,000,000 satoshis/BTC = 50,000,000 sats
- Fee: 5 KB x 1024 bytes/KB x 8 bits/byte = 512,000 sats
In block explorers:
- Fee: 0.001 sats/byte x 5,000 bytes = 5,000 sats
As you can see, the conversion rates are not exact, but they give you an idea of how to estimate fees in different units.
Conclusion
Understanding the difference between sats and KB is essential for making informed decisions when buying or selling cryptocurrencies. By recognizing the conversion rates between these units, you’ll be able to accurately calculate fees and make better financial decisions.
Remember, it’s always a good idea to verify the fee display on both Bitcoin Core and block explorers to ensure accuracy.