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Satoshi (SATS), short for Satoshis, is a unit of Bitcoin. One satoshi is equal to 0.00000001 Bitcoin, the smallest unit of digital currency. SAT and S are both commonly used as abbreviations.
Sats are used to measure the amount of Bitcoin one holds and make small transactions. Since one satoshi has very little value, they are especially useful for microtransactions and tips. For example, if someone wants to send a few cents worth of  Bitcoin, they can easily do so using sats. Satoshi takes its name from Satoshi Nakamoto, the inventor of BTC.
