Author: Gordon Mohr 2014-05-05 22:33:37
Published on: 2014-05-05T22:33:37+00:00
The discussion revolves around the use of the term 'bit' in Bitcoin, which is a source of confusion for some users. While it may seem intuitive to use the term 'bit' as it relates to Bitcoin, there are concerns that it adds to the complexity of an already challenging domain. The clash between the various definitions of 'bit' can add to the mental load required by first-time learners and low-context users. The context-dependent nature of the term could also interfere with language learning. Real currencies have many names for their units, including subunits with highly-unrelated sounds. Contrasting words help create more shades of meaning for different purposes. There are examples like dollars/bucks - bits (1/8ths) - dimes (1/10ths) - cents (1/100ths), pounds/quid - shillings (1/20ths) - pence (1/100th; formerly 1/240th), and yuan/kuai - jiao (1/10ths) - fen (1/100ths).The discussion further highlights the confusion caused by the ambiguity of the term 'bit' in Bitcoin. An example of contextual disambiguation is given, but it doesn't alleviate the concern of creating additional comprehension issues for users, especially low-literacy/low-context/low-numeracy users or learners. The article then provides a detailed explanation of how Bitcoin works and what the term 'bit' means in this context. It explains that Bitcoin uses the digital science of bits, the indivisible 1s and 0s of computer logic, to create a networked money measured in bits, which split into 100 indivisible cents called satoshis. Bit amounts are represented as 64-bit integer counts of 1/100th of a bit. The most important thing to remember is that your ability to spend bits is controlled by secret 256-bit numbers, called private keys, bits of info that only you know. The article warns that human-chosen passwords and 4-8 word phrases typically provide much less than 128 bits of security, far too little to create a 256-bit key. The discussion concludes that while most people may never need to understand binary digits and information science, if cryptocurrency becomes widespread, more people than ever before will want (and need) to understand the basics, and clear terminology can help them. It is also pointed out that building a brand around the term 'bit' could become problematic in the future if the term is effectively bootstrapped to mean a tangible amount for everyday commerce.
Updated on: 2023-06-08T20:10:55.966019+00:00