Jack Dorsey backs the rebranding of Bitcoin’s Satoshi identity.
A proposal to redefine Bitcoin’s smallest unit from “satoshi” to “bit” is gaining traction, with various developers, founders, and industry figures contributing their thoughts.
This initiative was brought forth by Synonym’s CEO, John Carvalho, last month and has been termed BIP 177.
Presently, the conversion stands at 1 BTC equating to 100 million satoshis. Carvalho’s suggestion would invert this concept, redefining 1 satoshi as “1 bitcoin,” thus making 1 BTC equal to 100 million bitcoins, or bits.
In this new structure, a transaction of 0.0001 BTC would be represented as 10,000 bitcoins, while ownership of 10.23486 BTC would equate to 1,023,486,000 bitcoins.
Carvalho believes this change would simplify user comprehension of Bitcoin, lessen cognitive load, and ensure the user interface reflects Bitcoin’s transaction framework. He remarked:
“Bitcoin’s ledger reflects values as integral base units. The decimal point is only a human-imposed abstraction.”
Opinions on Bitcoin’s BIP 177 are varied
The proposal has ignited both excitement and apprehension within the cryptocurrency landscape.
Jack Dorsey, co-founder of Twitter and a Bitcoin supporter, endorsed the change, indicating that the term “sats” presents a psychological hurdle for newcomers.
He commented:
“‘sats’ is clearly the wrong term and is preventing ordinary individuals from acquiring and utilizing Bitcoin.”
Samson Mow, CEO of JAN3, also supports the transition to bits but suggests waiting until Bitcoin reaches dollar-satoshi parity. He has proposed introducing two extra decimal points, referred to as “satcents,” to provide improved precision.
He remarked:
“Bitcoin will become synonymous with money, eliminating the need for sats.”
Nonetheless, not everyone is in favor of this shift, citing worries about Bitcoin’s overall security and comprehension within the broader community.
Yu Xian, founder of Slowmist, a blockchain security firm, cautioned that this change could lead to misunderstandings and technical confusion for newcomers in the industry.
Xian elaborated:
“If BIP 177 is approved, some subpar platforms might inaccurately represent 1 bitcoin as 1 BTC. The more simplistic the security issue, the more likely it is to occur… Of course, related scams might arise as well.”
Despite the criticisms, Carvalho asserts that detractors have not thoroughly engaged with the essence of BIP 177.
He stated:
“Many who express fear regarding BIP 177 have not genuinely read it and are not making an effort to counter the genuine motivations behind it.”
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