What is BIP-177?
This is a Bitcoin Improvement Proposal that has been recently hotly debated in the overseas Bitcoin community. It aims to redefine the units and display method of Bitcoin. Here is a detailed analysis:
Specifically
◦ BIP-177 proposes to define Bitcoin's smallest unit, 'satoshi', as '1 bitcoin', making it the everyday base unit of Bitcoin.
◦ If the proposal is passed, the familiar 1 BTC = 100,000,000 satoshis = 100,000,000 bitcoins.
Main Goals and Benefits
◦ Simplifying the User Experience: Since satoshi is already the smallest unit, this eliminates the decimal point, making the amount displayed more intuitive. For example, in the future we can say 'I have 623,000 satoshis' or '623,000 bitcoins', both indicating possession of 0.00623 BTC.
◦ Lowering the User Threshold: Currently, one BTC is 104,000 USD, which deters many retail newcomers. After BIP-177 is passed, they can buy 96,153 satoshis on exchanges (which looks like a lot, right?), approximately 100 USD.
◦ Promoting Everyday Use: Those who have used ⚡️ the Lightning Network know that payments are made in satoshis. After BIP-177 is passed, the smallest unit of Bitcoin will be consistent with the Lightning Network, facilitating the widespread adoption of Bitcoin as a means of payment, rather than just an investment or store of value.
Key Features
◦ No Protocol Changes: BIP-177 only involves display changes in user interfaces like wallets and exchanges, without affecting the underlying protocol, consensus rules, or the total supply cap of 21 million coins.
◦ Compatibility: Users can continue to use existing units (such as BTC or satoshis), and wallet or exchange interfaces may offer switching options.
◦ No Need for Node or Miner Upgrades: This is an interface-level adjustment that does not require a network upgrade.
Potential Impacts or Controversies
◦ In the short term, it may cause confusion among users, especially long-term holders accustomed to using BTC as the unit. Misunderstandings can easily occur in verbal expressions.
◦ Some community members worry that redefining the unit may affect Bitcoin's brand recognition.
Current Status
◦ As of May 2025, BIP-177 is still just a proposal and has not yet been passed, with active discussions within the Bitcoin community.
◦ Some wallets (such as Bitkit) have already made experimental adjustments, as shown in the image below, and user feedback has been quite positive.
The introduction of the proposal is complete. As a Bitcoiner, do you support the passage of BIP-177?
