Bitcoin: A new proposal redefines the minimum unit from "satoshi" to "bit" and could change everything.

The BIP 177 proposal seeks to replace Bitcoin's smallest unit, the "satoshi," with the "bit," with the goal of simplifying the understanding and use of the market-leading cryptocurrency. 

Bitcoin is at the center of a crucial debate that could change the way millions of users understand and use this cryptocurrency. Proposal BIP 177, presented by developer John Carvalho, proposes a radical transformation: Eliminate the smallest unit known as "satoshi" and replace it with the unit called "bit". 

Currently, one Bitcoin is divided into 100 million satoshis, a figure that many find complex and unintuitive, especially for those new to the crypto world. Therefore, by redefining Bitcoin's base unit, BIP 177 seeks to eliminate decimals and display amounts in whole numbers, thus making Bitcoin easier to understand and use on a daily basis. 

This initiative has the support of industry leaders, such as Jack Dorsey, co-founder of Twitter (now X) and Block Inc., who supports That the term "satoshi" is confusing for new users. However, the proposal also faces criticism and challenges that could affect its approval. Let's see. 

The BIP 177 proposal: redefining the minimum unit of Bitcoin

The BIP 177 proposal, formally introduced in April by John Carvalho, seeks to change the way Bitcoin's value is measured and displayed. Currently, the minimum unit is the satoshi, which is equivalent to one hundred millionth of a BitcoinThis means that for small transactions, users must handle numbers with up to eight decimal places, which can be confusing and unfriendly, especially for those unfamiliar with cryptocurrency. 

BIP 177 proposes to reverse this scale: the "bit" would become the smallest unit, and one Bitcoin would be equivalent to 100 million "bits." Thus, instead of displaying 0,000001 BTC, the amounts would be expressed as integer numbers, for example, 100 bits, which makes it easier to read and understand.

It is important to highlight that this change It does not alter the protocol or the total amount of Bitcoin in circulation, which remains at 21 million.It only modifies the way quantities are presented in user interfaces, eliminating the use of decimals and thus reducing complexity for the average user. 

The proposal is also inspired by similar practices in stock markets, where companies adjust the par value of their shares to facilitate smaller, more precise transactions. Thus, BIP 177 aims to make Bitcoin more accessible for micropayments and everyday use, a key step toward mass adoption.

Opinions and endorsements from industry leaders: Jack Dorsey and others

Among the most prominent supporters of the BIP 177 proposal is Jack Dorsey, an entrepreneur known for his advocacy of Bitcoin as an everyday payment tool. Dorsey has expressed on social media that the term "satoshi" could be technical and confusing for new users, limiting widespread adoption of the cryptocurrency. According to him, replacing "satoshi" with "bit" would make Bitcoin more intuitive and easier to use, especially for people without deep knowledge of technology or finance.

Furthermore, developers and companies in the crypto ecosystem have pointed out that the proposal could lower the psychological barrier to entering the world of Bitcoin by displaying amounts in whole numbers, something more familiar to most people. 

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However, some members of the Bitcoin community remain skeptical or critical. They argue that the term "satoshi" is already widely accepted and that changing it could cause confusion during the transition period. They also warn that the change could affect the culture and identity surrounding Bitcoin, and that the improvement in usability is not as significant as presented, since the use of satoshis as a unit is not as confusing as other aspects inherent to the technology. 

“Of all the things about Bitcoin, explaining sats is by far the least confusing.”, commented a user on X.  

Advantages and challenges of adopting the “bit” as a minimum unit

Furthermore, by aligning more closely with the internal logic of the Bitcoin protocol, which handles values ​​in integer units, the proposal improves technical transparency and reduces the complexity of value representation. It is also a low-risk solution, as it requires no changes to consensus rules or forced upgrades for miners or nodes, only adjustments to the user interfaces of wallets and exchanges.

The BIP 177 proposal presents several clear advantages. First, it simplifies the user experience by eliminating decimals and displaying amounts in whole numbers, making Bitcoin easier to understand and use in everyday transactions, especially micropayments. This could incentivize more merchants to accept Bitcoin and more people to use it as a means of payment, strengthening its role as a currency and not just an investment asset.

However, the proposal also faces significant challenges. Community acceptance is one of the biggest hurdles, given that the term "satoshi" is deeply rooted in Bitcoin culture. The change could cause confusion during the adaptation period if different platforms adopt different formats simultaneously. Furthermore, some critics point out that Bitcoin's usability problem is not limited to nomenclature, but also involves technical issues such as wallets, fees, and transaction confirmation speeds, which would not be resolved with this change.

The potential impact on the global perception and use of Bitcoin

If BIP 177 is passed and implemented, it could have a significant impact on how Bitcoin is perceived and used around the world. By making Bitcoin amounts easier to understand for the average user, the proposal could accelerate mass adoption, especially in markets where financial and technological education is limited. This could make it easier to use Bitcoin in everyday micropayments, from buying a cup of coffee to paying for services, bringing the cryptocurrency to a wider audience.

The change may also influence the perception of value. By redefining the minimum unit and displaying values ​​in whole numbers, users may feel like they own "more bitcoins," which may increase their sense of participation and trust in the currency. However, it's important to note that This modification does not alter the actual value or total amount of Bitcoin, but only the way it is expressed..

On a global level, this simplification could encourage more merchants and platforms to integrate Bitcoin into their systems, strengthening their ecosystem and making them more competitive compared to other cryptocurrencies and digital payment methods. 

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