themorningcrypto

    Jager

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on November 19, 2022 11:30 AM

    Updated on January 25, 2023 8:29 PM

    Jager is the name of the smallest Binance Coin (BNB) denomination.
    Jager
    Source: Twitter

    What is Jager?

    The Binance Coin, often known as BNB, is a cryptocurrency that was developed by the Binance exchange and is traded under the ticker code BNB. The smallest BNB unit is called Jager. One Satoshi, for instance, is the smallest Bitcoin unit (BTC). Jagers are to BNB, what satoshis are to Bitcoin.

    The majority of cryptocurrencies may also be divided into decimals, as indicated in each coin's set of rules. Decimals in cryptocurrency refer to a coin's or token's degree of divisibility, between 0 (indivisible) to 8 or higher, as necessary. In BNB, there are 8 of them. Technically speaking, they are the number of digits following the decimal point. Consequently, 1 Jager equals 0.00000001 BNB.

    How was the term "Jager" coined?

    Jager was the telegram handle of the then Binance Community Manager at the time. Changpeng Zhao (CZ), the CEO of Binance, chose the name Jager for the lowest denomination of a BNB since he has been a Binance Angel since the company's founding and later served as the community manager. 

    What are cryptocurrency units and denominations?

    Simply explained, a cryptocurrency unit is a standardized way to quantify the worth of a particular digital asset. In a related vein, the Dollar serves as the standard unit in the United States while the Euro serves as the standard unit in Europe. 

    These cryptocurrency units are further divided into base units and derived units. 

    • For a certain digital asset, base units are the main or basic units of value. For instance, Jagers, the smallest unit of Binance that can be exchanged on the blockchain, is frequently used to measure Binance Coin (BNB).
    • On the other hand, derived units are secondary value measurements that are based on the base units of a particular digital asset. For instance, 100,000,000 Jagers are equivalent to 1 BNB. Consequently, derived units make it possible to measure bigger quantities of a digital item without using a lot of base units.

    Why use units and denominations?

    These units or denominations may be chosen by crypto initiatives for a number of reasons.

    • Users may find it simpler to comprehend costs as a result. This is because transacting in smaller units, like dollars or euros, is more common than in bigger ones, like Binance. Therefore, employing denominations can aid in bridging the divide between conventional fiat currency and digital assets.
    • Second, employing denominations can help with accuracy problems. To purchase 0.001 BNB, for instance, at the current BNB price of $10,000, you would enter "0.00001" into the BNB/USD trading pair on an exchange. You would only need to enter "10" into the mBNB/USD trading pair if BNB were measured in mBNB (millibinance), though.
    • Moreover, performing mathematical operations can be facilitated by the use of denominations. This is due to the fact that most individuals prefer working with smaller numbers over bigger ones. As a result, employing denominations can aid in simplifying complicated computations. Due to this plus the fact that it is associated with Binance and costs less, most users prefer purchasing Jagers rather than a full BNB currency.

    Significance of Jager

    The units of smaller denominations than the base units of a cryptocurrency are frequently used for trading. These more granular coin divisions allow for more accurate pricing and can facilitate the trading of tiny quantities of a currency. Therefore, Jager is essentially the smallest Binance Coin unit.

    Cryptocurrencies are precious and have a limited quantity, the same as how other valuable assets like gold and diamond. Cryptocurrencies, on the other hand, maybe split into smaller pieces to make them more manageable and convenient to spend than other assets.

    The number of decimal places utilized also has an impact on the value of coins currently in use. While some cryptocurrencies only have two decimal places, others have eight. In the case of Jager, there are eight decimal places.

    Conclusion

    Though initially complicated, cryptocurrency units and denominations are really pretty straightforward if you know how they operate. In a nutshell, crypto denominations are smaller divisions of a unit, whereas units relate to the base currency used to measure a digital asset. A unit is 1 BNB, and its denomination is 1 Jager.