Author: Jimmy Song 2017-12-13 19:46:09
Published on: 2017-12-13T19:46:09+00:00
Jimmy Song has proposed an informational BIP to standardize the term "bits" within the Bitcoin ecosystem. The proposal defines "bits" as the standard term for 100 satoshis or 1/1,000,000 of a bitcoin. The motivation behind this proposal is that as the price of bitcoin grows, it becomes difficult to distinguish between small amounts due to the number of decimal places involved. Using "bits" instead of satoshis or milli-bitcoin makes comprehension easier and reduces user error on small amounts. Additionally, reverse comparisons are easier as it allows for easier comparisons of prices for most users and bi-directional comparisons to fiat currencies. The proposal also suggests that all Bitcoin-denominated items show the denomination in bits, either as the default or as an option. The specification defines 1 bit as 1/1,000,000 bitcoin, and pluralizes "bit" as "bits." It also notes that existing terms used in Bitcoin such as satoshi, milli-bitcoin (mBTC), and bitcoin (BTC) do not conflict as they operate at different orders of magnitude. The term micro-bitcoin (µBTC) can continue to exist in tandem with the term "bits. "The proposal is backwards compatible, meaning that software such as the Bitcoin Core GUI can continue to use the µBTC denomination if desired. The BIP is licensed under the BSD 2-clause license, and credit for the term "bits" is given to its unknown inventor.
Updated on: 2023-05-20T04:32:49.509718+00:00