Satoshi

Bitcoin

when

John Carvalho, the CEO of Bitcoin tools developer Synonym, has proposed the redenomination of Bitcoin as the smallest unit of the digital currency. In the Bitcoin Improvement Proposal (BIP) published on X, he seeks to define 1 Satoshi as 1 Bitcoin, eliminating the need for decimal points. 
According to Carvalho, the change will reflect the Bitcoin network’s true nature instead of users’ perception of one Bitcoin as one hundred million Satoshis (sats). With the proposal, one Satoshi will now mean One Bitcoin. So, 1000 sats, currently displayed as 0.00001000 BTC, will now be displayed as 1000 bitcoins. 
He believes that removing decimals, a human-imposed abstraction, will improve the user experience for the Bitcoin network. It will reduce confusion and mental arithmetic error while ensuring a consistent standard for measuring Bitcoin as adoption grows and the value of the token increases. He <a href="https://x.com/bitcoinerrorlog/status/1867597672363806995?s=46" rel="nofollow" target="_blank">said</a>: 
<blockquote>
 “This representation requires dealing with eight decimal places, which can be confusing and foster the misconception that Bitcoin is inherently decimal-based. In reality, Bitcoin’s ledger represents values as integers of the smallest unit, and the decimal point is merely a human-imposed abstraction.”
</blockquote> 
In his view, implementing this proposal would be easy as there is no need for any major technical upgrade for the network. All that would need to change is the display format, and developers can simply update user interfaces, APIs, and documentation to present Bitcoin values as integers. 
On the user front, the value of their Bitcoin will not change, and they simply have to adjust to not using decimals, which might take some time. During the transitional period, when the risk of confusion is high, he recommended dual displays, tooltips, coordinated messaging, and educational materials to clarify any confusion. 
Carvalho added that implementing the changes can happen within a year over three phases and added that Synonym’s Bitcoin <a href="https://www.cryptopolitan.com/phantom-wallet-direct-pump-fun-and-moonshot/">wallet</a>, Bitkit, has already implemented the integer-only display. This proves that it is achievable. 
<h3 id="span-style-font-weight-400-new-proposal-restarts-the-conversation-about-bitcoin-denomination-span">New proposal restarts the conversation about Bitcoin denomination</h3> 
Meanwhile, the proposal has reignited an age-long debate over how to measure Bitcoin. In 2017, Bitcoin expert Jimmy Song proposed BIP 176, which sought to introduce “Bits” as the standard denomination for Bitcoin to simplify smaller transactions. The proposal sought to eliminate the need for decimal points by using “bits” to represent 100 satoshis, which is one millionth of a <a href="https://www.cryptopolitan.com/btc-champion-microstrategy-joins-nasdaq-100/">Bitcoin</a>. 
However, Carvalho noted that the new proposal and BIP 176 are different because using “bits” will not fully address the decimal issue and only reduce the number of decimal places in some contexts. He added that implementing that proposal would only have created an inconsistent user experience and does not reflect the protocol’s true nature. He said: 
<blockquote>
 “In essence, while BIP 176 attempts to simplify small amount representations, it only replaces one decimal representation with another.”
</blockquote> 
Thus, he believes his own proposal will be more durable as it completely redefines Bitcoin and removes the need for decimal fractions to offer a clearer and more intuitive solution. 
<h3 id="span-style-font-weight-400-the-community-is-divided-on-the-proposal-span">The community is divided on the proposal</h3> 
However, the proposal has attracted mixed reactions, with some accepting it and many criticizing it. Bitcoin advocate <a href="https://x.com/psifour/status/1867606628503089532?s=46" rel="nofollow" target="_blank">Psifour</a> believes that it is harmful across numerical and linguist metrics, noting that Sats are already serving the same purpose without any complexity and this proposal has no value except to confuse users. He said: 
<blockquote>
 “Denominating bitcoin in sats accomplishes all of the existing upsides of this proposal that are not directly attempting to manipulate end users without any of the technical workload, social confusion, or redefinition of terms.”
</blockquote> 
While not everyone vehemently opposed it, most believe that it is not necessary and could further complicate things for newbies who are just embracing Bitcoin. They noted the logistical challenges and high risk of confusion that could follow such changes. 
Nevertheless, <a href="https://x.com/christoph3r_13/status/1867693527767106030?s=46" rel="nofollow" target="_blank">some</a> believe it would be a good change and could even increase adoption as it would invariably mean Bitcoin at $100,000 is actually 100 million bitcoins and not just 1 BTC. 
Land a High-Paying Web3 Job in 90 Days: <a href="https://www.cryptopolitan.com/crypto-career-launchpad-waitlist/?utm_source=cryptopolitan&amp;utm_medium=banner&amp;utm_campaign=ccl-waitlist-2" target="_blank">The Ultimate Roadmap</a>

Bitcoin improvement plan reignites debate over token denomination methods

Table of Contents

Cryptopolitan_News

Other articles published on Dec 14, 2024

Holdstation Introduces AI Agent Launchpad With $2M Grant on ZKsync

Reduced Leverage Drags Altcoin Trading: Meme Tokens Bear the Brunt

Crypto Millionaire’s Hottest Winter Crypto Picks: Memecoins Lead the Way With a Surge Potential

Plus Wallet Emerges as the Top Choice for Security Amid Crypto Liquidation Surge; Binance Web3 Wa...

Wall Street questions Fed’s intentions as tool rate cut appears likely

Solana Price Mirrors Bitcoin, Ethereum Patterns: Can It Surpass $1000?

Join our free newsletter for daily crypto updates!