What is Bitcoin Improvement Proposal BIP-177 and what is its impact?

Original Article Title: "The 'Satoshi' that Killed Satoshi: BIP-177 Starts the Bitcoin Unit War"

Original Article Author: Golem, Odaily Planet Daily

On the evening of May 18, social platform X (formerly Twitter) founder Jack Dorsey posted about "bip 177," sparking widespread attention. BIP stands for "Bitcoin Improvement Proposal"; Jack's post was not about some mysterious meme symbol but rather about Bitcoin Improvement Proposal number 177.

BIP-177: Making Bitcoin "Bigger"

BIP-177 was proposed by Synonym CEO John Carvalho. The proposal aims to redefine Bitcoin's base unit and representation method without modifying the core consensus protocol. Key points of the proposal include:

· Changing the Bitcoin base unit from "satoshi" to "bitcoin," with "satoshi" or "sat" being deprecated;

· The currency code "BTC" remains unaffected and can continue to be used, where 1 BTC = 100,000,000 bitcoins;

· The use of the "₿" symbol to represent the base unit of bitcoin, 0.345 BTC = 34,500,000 bitcoins = ₿34,500,000;

· Applications should allow users to switch between the traditional BTC format and the new integer format.

In essence, the BIP-177 proposal aims to make everyone's bitcoin "bigger" in terms of display and format, changing the total display of Bitcoin to 2.1 trillion bitcoins, without actually changing the Bitcoin supply.

Benefits of BIP-177

Although it is merely a change in display and format, John also believes that BIP-177 will have significant benefits:

· Reduce Cognitive Load

Due to Bitcoin's appreciation, whether in daily payments or on-chain Bitcoin usage, Bitcoin often appears in decimal form. By redefining and displaying Bitcoin's (BTC) base unit as "one bitcoin" to reduce users' cognitive load. An interface that only displays integers can simplify mental calculations and reduce potential confusion or user errors. For example, instead of a user spending 0.00002 bitcoins, it would be changed to spending 2,000 bitcoins, which is more easily understood.

· Eliminating Unit Fear

Currently, the price of one Bitcoin is around $104,000, which can easily trigger unit fear in people, making them think the price is too high. Some may feel embarrassed to say they can only afford 0.1 Bitcoin. Moreover, for newcomers to Bitcoin, the visually perceived high unit price can also lead to "price ceiling anxiety," believing that the price is too high and further increases are unlikely. However, using a new display format, one Bitcoin is only $0.00104, which, compared to a price of 100,000, visually feels easier to increase, eliminating unit fear.

· Simplifying User Experience

Abandoning the original base unit, satoshi, can simplify the user experience, and removing the artificial decimal format can help users understand that the Bitcoin protocol is essentially a countable discrete unit. The satoshi is a secondary currency unit relative to Bitcoin, adding complexity to Bitcoin counting. Understanding Bitcoin and satoshi thus becomes two separate issues, which is not conducive to Bitcoin's wider dissemination.

Opposing Views

Of course, there are also opposing views within the community regarding the BIP-177 proposal.

· Destroys "Satoshi Culture"

The strongest opposition to the BIP-177 proposal lies in its suggestion to abandon the base unit satoshi, named after the "Bitcoin Genesis God" Satoshi Nakamoto, creating a cultural barrier.

· Easy to Cause Confusion

For users accustomed to using BTC as the unit, confusion can easily arise, especially in verbal communication. Additionally, translating into Chinese poses a challenge. If BTC and the base unit bitcoin are both translated as "比特币" (Bitcoin), serious confusion will occur in expression, affecting consensus.

· Affects Bitcoin Brand Recognition

This is a major contradiction. Fundamentally, Bitcoin attracts attention and gains prominence due to its increasing value. However, using a new format will make the price of one Bitcoin visually "cheap," potentially impacting newcomers' perception of the Bitcoin brand.

"Facadework" in a Bull Market?

In fact, during a bull market, as the price of Bitcoin and purchasing power increase, people begin to discuss the basic unit of Bitcoin. In December 2017, when the price of Bitcoin surpassed $10,000, community members proposed the BIP-176, which suggested introducing a new Bitcoin unit called bits, with an exchange formula of 1 bit = 100 satoshis = 0.000001 BTC. The rationale for this proposal aligns with BIP-177, reducing cognitive burden, facilitating daily use, etc. (no wonder these two proposals are linked together), but this proposal was ultimately not approved.

Today, the price of one Bitcoin has surpassed $100,000, making it 10 times more expensive than 8 years ago, once again significantly increasing Bitcoin's purchasing power. In the United States, one Bitcoin can buy a Tesla Model S Plaid; in China, one Bitcoin can easily get you a Xiaomi SU 7 Ultra; and in El Salvador, one Bitcoin can purchase a whole villa. These purchases are already considered extravagant for ordinary people, so it is reasonable that people are paying attention to Bitcoin's base unit and representation methods. However, fundamentally, these upgrades have no practical effect on the Bitcoin network and are more like people engaging in "face-saving" activities during a bull market. If another bear market ensues and Bitcoin's value drops, people's interest in this matter may decrease once again.

According to the expected implementation timeline of BIP-177, even if the proposal is adopted, transitioning from the first stage introducing the concept to the second stage where mainstream services and media default to displaying only integers, and finally reaching the third stage where integer format representation becomes the standard, the entire process is estimated to take 2 years. However, the enthusiasm for implementing this proposal may also fluctuate with market changes. Interestingly, the Bitcoin Pizza Day is approaching soon. 15 years ago, someone bought two pizzas for 10,000 Bitcoins, which were worth only $41 at the time; now, these 10,000 BTC are worth over $1 billion. Today, if BIP-177 is approved, people would still have to spend 35,000 bitcoins to buy those two pizzas, which seems like another cycle in itself.

If you can't improve my life, then change the unit of measurement.

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