Author: ZmnSCPxj 2019-04-01 03:02:28
Published on: 2019-04-01T03:02:28+00:00
The context revolves around the value of USD in comparison to BTC and the limitations of encoding it. The minimum exchange rate of 1 BTC to 50000 USD implies that 1 USD is equal to a maximum of 0.00002 BTC. However, this conversion makes no sense as the true value of 1 USD is actually 0.00000000 BTC, or even less on Lightning. The proposed encoding in BIP does not support an expression of infinity USD per BTC, making it impossible to express the true value of USD under this BIP.The specified transaction format requires the USD/BTC rate to be used in standard signed integer serialization, with all leading zeros removed except those required to preserve the sign bit. This highlights the limitations of representing the true value of USD in BTC under the current encoding proposed in BIP.
Updated on: 2023-06-13T17:52:32.556060+00:00