Named in homage to bitcoin's creator, a satoshi is the smallest amount within bitcoin representing 0.00000001 bitcoin, one hundred millionth of a bitcoin.
While wallets are often described as a place to hold or store bitcoins, due to the nature of the system, bitcoins are inseparable from the blockchain transaction ledger. Ownership of bitcoins implies that a user can spend bitcoins associated with a specific address.
Bitcoin creator Satoshi Nakamoto designed bitcoin not to need a central authority. Bitcoin is pseudonymous, meaning that funds are not tied to real-world entities but rather bitcoin addresses.