SATS (Ordinals) is an innovative token based on the Ordinals protocol and follows the BRC-20 token standard on the Bitcoin network. The name "SATS" is derived from "Satoshi," the smallest unit of Bitcoin, where each Bitcoin can be divided into 100 million satoshis. However, SATS itself is not the smallest part of Bitcoin but rather serves as a reference to the cryptocurrency. Notably, SATS stands out as a meme token, created more for fun and community engagement rather than with the intention of becoming a major player in the blockchain ecosystem or crypto assets as a whole​​​​.

SATS marks a significant advancement in Bitcoin's evolution by introducing fungible tokens into the Bitcoin ecosystem. The Ordinals protocol, a fundamental tool in this process, tracks individual satoshis and assigns them distinct IDs. SATS utilizes this protocol to inscribe words onto these satoshis, creating interchangeable tokens. This development broadens Bitcoin's potential to include both interchangeable and non-interchangeable tokens. Unlike Ethereum's ERC-20 tokens, which operate through smart contracts, SATS and other BRC-20 tokens function directly on the Bitcoin blockchain using JSON (JavaScript Object Notation) data inscriptions. This approach adds an extra layer of security and allows for various applications, from facilitating microtransactions to potentially enabling decentralized financial (DeFi) services on the Bitcoin blockchain​​​​.