The complex decimals of Bitcoin could soon become history, provided there is a new plan to redefine the base unit for actual “Bitcoin” to be adopted.
Bitcoin (BTC) has always had a small habit that can confuse even for long-time users. Officially, one Bitcoin is also known as 100 million “base units” (also known as “atshis” or “sat”, but in the industry it is usually discussed with decimals such as 0.0001 BTC or 0.345 BTC. This setup can be a bit confusing, though familiar. And now there are suggestions on the table that may shake things up.
The idea behind BIP-0177, submitted from synonyms to Synonym.CEO John Carvalho and Bitcoin developer Mark “Erhardt, wants to flip the whole system into your mind by redefineing one Bitcoin and actually meaning one base unit. This means that the smallest inseparable unit of Bitcoin will become the main reference point.
There are no more decimals. There are no fractions. So, what the industry thought was Satoshi is simply called Bitcoin.
While the proposal may seem unconventional, its supporters argue that the update will “help clear much of the confusion surrounding the underlying structure of Bitcoin, as it aims to simplify user understanding, reduce confusion, and directly align the displayed representation with the direct on-chain value,” the proposal states.
The idea of decimals
Currently, Bitcoin ledger records all transactions in separate, inseparable units (integers). The commonly used decimals are human-imposed abstractions, comparable to imagining dollars that are made up of one billion cents. According to the proposal, this fostered a “sustainable decimal idea” that misrepresented how Bitcoin actually works.
In their own words, the current convention “we need to deal with eight simulated decimals. This can confuse and promote the misconception that Bitcoin is essentially based on decimals.”
1 Bitcoin Soil | Source: River
Therefore, by redefine the base unit as “one bitcoin”, BIP-0177 aims to match the displayed values to the network’s underlying structure. This change eliminates the need to interpret decimals such as 0.000001 BTC as small decimals, and instead presents all quantities as integers.
For example, what appears today as 0.00010000 BTC would be ₿10,000, or 10,000 Bitcoins on the new system. 10 bitcoins today? This would be 1,000,000,000 or 1 billion bitcoins. The currency code BTC has not been changed, so if someone says 1 BTC it means the old standard of 100 million basic units. However, in the user interface and app, the new “Bitcoin” becomes the base unit.
“Reduce clarity”
However, this switch is not required. The application provides a toggle between the old decimal system and the new integration system, allowing users to mitigate changes. The proposal even suggests using the ₿ symbol optionally to represent Bitcoin in the base unit.
Mnee CEO Ron Tarter agrees that removing decimal places makes it easier for everyday people to understand, but he warns about naming confusion.
“Deleting decimal numbers is easier to understand for everyday people. The name of the base unit must either remain “sat” or be renamed to a word that has not yet been used to describe the total BTC. It doesn’t call it “SAT,” it does involve reducing clarity. Renamed. ”
Ron Tarter
You might like it too: Kraken may know Satoshi’s identity: Coinbase Director
Aesthetics isn’t the only motivation behind BIP-0177. The BIP team claims that the shift is:
- You can use only integers to simplify mental arithmetic and reduce user errors.
- User perceptions align how Bitcoin actually works, counting the entire unit rather than decimal.
- By removing the confused decimal layer, you can easily teach newcomers about Bitcoin.
Future Bitcoin units for growth and recruitment.
There’s also a bit about perception. The total supply of basic units is around 2.1 Quadrillion, so the new counting method makes the supply of Bitcoin looks enormous. However, the proposal points out that this is merely a change in expression, not an increase in supply. It’s similar to the way that currencies like the Japanese Yen and Indonesian Rupiah have a higher unit count, but no one thinks it’s inflated.
Cleaner fix
Not everyone agrees with the BIP-0177 approach. Alternate BIP-176 proposed using “bits” (one millionth of each bit (or 100 Satosh)) to reduce the location of the decimals. However, the author of BIP-0177 believes he still remains in the idea of decimal numbers. Bits only shift the problem, forcing the user to juggle multiple denominations (BTC and Bits).
They said the “bit” proposal “doesn’t readjust the displayed values to the essential nature of Bitcoin ledgers,” adding that “it continues to rely on fragmentary units and hides the basic integer-based accounting that Bitcoin employs.” In other words, BIP-0177 considers it a cleaner and more durable fix by cutting out the fractions completely.
Gomining CEO Mark Zalan told Crypto.News that Bitcoin’s biggest challenge in the upcoming Crypto cycle goes beyond its role as a value store that is often referred to as “digital gold,” which is a true medium of exchange. He believes that increasing transaction activity on the Bitcoin network will drive mass adoption and increase the value of Bitcoin many times.
“We believe this innovation is a move in the right direction. It allows users to easily pay and manage their 100 million units of balances. Is this percentage called Satoshi, or ultimately a matter of preference. Overall, the proposal is useful.”
Mark Hank
Zaran emphasized that large-scale adoption depends on solving two important issues. This is necessary for instant transaction checks and lower transaction fees required to support the wide network of ordinary point terminals.
One of the tricky parts is the term “Satoshi” or “SAT.” This is something that many of the community love. This is a nod to Bitcoin’s mystical creator, Samoto Atoshi, and “Stacked SAT” has become a meme. The proposal acknowledges that it says, “While it is culturally valuable, the term introduces an implicit second sectarian class that contradicts this BIP goal.”
The CEO of Mnee added that “SATS” has become part of Bitcoin culture, “it lies in memes, community language and even framing behavior.
He added that the argument may look more cosmetic, but the cost is deeper than it appears. At best, it’s a lateral movement of ease of use. In the worst case scenario, you add confusion and friction by relearning your community with their own vocabulary. Tarter suggests that if a name change is required, the community may choose a name that actually indicates that it means “SATS is already working” while short for Fractions, such as “Fracks.”
Ideological changes
The proposal doesn’t ban words, but it promotes the use of “Bitcoin” as the sole unit of wallets, exchanges and documents to keep things simple and consistent.
Tarter warns that changing the name from “SAT” to “Bitcoin” could be even more confusing for users. He said people are “already used to 100,000,000 Satosh equals a bitcoin,” adding that “hunds of millions of people are familiar with this framework.”
“If you start calling one Satoshi one bitcoin, that’s obviously confusing for many people. Frankly, most users aren’t asking for new names. They’re looking for a clearer interface, a simpler conversion, and a barrier to using Bitcoin in real life.”
Ron Tarter
This change does not change the Bitcoin blockchain or its consensus rules. It is purely a change in the way values are displayed. The underlying ledger continues to operate on the base unit as always. Implementing the new system requires developers to update the user interface, APIs and documentation, but adoption includes a period of adjustment to display large numbers of integers instead of decimals.
That said, there are some concerns about the disruption during the transition. You might think that Decimals once had their holdings suddenly jumped or shrunk. To avoid that, BIP recommends dual displays, tooltips, and clear education to help people understand equivalence.
Interestingly, some wallets like Bitkit are already trying to show the amount of Bitcoin as an integer, and the experience is smooth. This proposal laid out a step-by-step approach to adoption.
- In the first 3-6 months, you will develop dual displays and educational materials in the pilot app.
- Over 6-12 months, more services will adopt an integer-only display by default supported by community tuning.
- After more than a year, the integer format becomes standard and the reference to decimal bitcoin disappears.
It is still unclear whether the Bitcoin community is embracing this new way of thinking.
read more: CZ speculates that Nakamoto atoshi is AI from the future
