On September 23, Twitter announced that it has launched a tipping function that supports Bitcoin payments in the iOS version of the App , and it will be launched to Android users in the next few weeks.
As shown in the figure above, users can freely choose different amounts of Bitcoin for tip payment with this function. The upper part is displayed in USD equivalent, and the lower part is the amount of Bitcoin denominated in “satoshi”. Take the first payment option as an example, 2261 is “2261 Satoshi’s Bitcoin”, and the market price at that time was $1.
So, what is “satis” and how might it affect Bitcoin’s subsequent payment adoption?
What is “sati” and what is the impact?
First of all, we need to make it clear that “satoshi” is the smallest basic unit of bitcoin pricing (Satoshi, referred to as SAT), 1 bitcoin = 1 billion satoshis; 1 Satoshi (SAT) = 0.000001 BTC.
1. The price advantage of consumption scenarios such as payment and transfer
“Cong” has been born as early as at least 2011, but it has not received mainstream attention before due to the combined influence of various factors such as the relatively low unit price of Bitcoin. Now with the price of tens of thousands of dollars per bitcoin, in the field of payment and transfer, the meaning of “satis” compared with direct “BTC” pricing is reflected:
Take the above picture as an example. 1 USD is 0.00002261 BTC. If you follow this price, it will undoubtedly become very troublesome in actual payment and transfer.
But if the price is “satis”, 1 US dollar is equal to 2261 SAT, which will be much more convenient whether it is to pay for transfers or when recording. It is undoubtedly suitable for small transfers and payment scenarios.
Jesse Xiong, the legal representative of JP Morgan Chase, has similar ideas. He once publicly stated that the reason why “satis” are becoming more and more popular is that it is relatively simple to record in units, and a large number of decimals seem to really make People have a headache.
2. Lower the “psychological threshold” on exchange
In addition, it is not only the user’s cognitive advantage in price tagging when paying and transferring money, but from the perspective of exchange, it can actually lower the psychological threshold of incremental users.
In the traditional financial market, if the value of a single stock is relatively high, the company may decide to split the stock in order to attract more ordinary investors and lower their purchase and psychological thresholds. Just like Tesla’s previous stock split plan, many ordinary investors have the opportunity to participate (from thousands of dollars per share to only a few hundred dollars per share).
The same thing applies to the high price of Bitcoin, although there is no money to buy stock as encryption must be at least “single-handedly”, “an” or minimum limit, but like dogs currency generally lower prices and so on, is certainly MEME Token Ordinary investors are more psychologically attractive-it looks cheaper and more cost-effective.
This is why when ordinary investors first enter the market, most of them choose cryptocurrencies that seem to be “cheaper”.
Not long ago, a cryptocurrency platform in the industry announced that it would open the “Satoshi” exchange mode for all Bitcoin exchanges. Users can choose to exchange BTC in SAT units in their account interface settings. For example, when the “Satoshi” mode is enabled, BTC /USD will be displayed as SAT/USD, and ETH /BTC will be displayed as ETH/SAT.
However, the latter is more of a psychological impact, but the former uses “satoshi” as the unit of small-amount bitcoin fast payment and transfer, which may be crucial to the next stage of bitcoin development-it is very likely to become bitcoin in the next stage of development. The payment field is a key help to regain the attributes of “global currency”.
In the documentary “New Blockchain”, the host tried to experience paying with Bitcoin, but buying a tiramisu worth $4 would cost more than $20, which is several times the value of the product itself. .
This is not an isolated case, but a true epitome of the fact that Bitcoin has become more and more difficult to use in the payment field in the past few years.
Especially in the context of institutional admissions and price hikes in 2020, the asset attribute of Bitcoin’s “digital gold” has faintly overwhelmed the payment attribute of “global currency”.
Under the new development momentum of the Lightning Network, “satis payment” ushered in a turning point
For Bitcoin, which can only process 7 exchanges per second, how to realize instant payment in small, high-frequency, and fast retail scenarios has once become the biggest pain point of its vision of “global payment currency”, and the Lightning Network ( Lightning Network), it is the main solution for Bitcoin to strengthen the payment attributes.
The Lightning Network, which was launched in the beta version in March 2018, is Bitcoin’s second-layer off-chain expansion solution. Its main principle is: putting operations outside the Bitcoin main chain, allowing users to pay lower fees and Deposit and transfer Bitcoin with higher efficiency.
However, in 2019 and 2020, the development of the Lightning Network was not satisfactory. The overall growth rate was very slow. It was even crushed by ERC20 Bitcoin (WBTC, etc.) after the launch of DeFi Summer. Those who had high hopes on the Lightning Network gradually became discouraged.
But since 2021, especially in the past six months, the Lightning Network has unknowingly ushered in an outbreak. As of September 26, the number of Bitcoins locked in the Bitcoin Lightning Network exceeded 2,900, a record high.
In the past year, the number of nodes in the Bitcoin Lightning Network has increased from 7,500 to more than 15,000, achieving a nearly double growth.
Especially in the previous mid-June, the number of Bitcoins in the Lightning Network was only 1,500, which directly doubled in three months, which is equivalent to saying that the Lightning Network has completed the growth of the past three years in the past three months. The amount of road.
In addition, the unexpected progress between institutions and countries may be the biggest boost during this period. Under the tipping function introduced by Twitter this time, it has integrated Bitcoin through the Lightning Network, allowing users to use the Strike Wallet to make small bitcoin payments through the Lightning Network.
The adoption of El Salvador has enabled the Lightning Network to take an important step in large-scale payments.
According to the latest statement by the President of El Salvador, Nayib Bukele, only three weeks after the launch of the cryptocurrency wallet Chivo, the country has been actively used by 2.1 million people (the country currently has about 6.5 million), and the number of users of the wallet is more than any single bank in El Salvador. Has a large number of users, and will exceed the sum of all bank users in the future.
“Satoshi” + New Beginning of Lightning Network Bitcoin Payment Properties
From this point of view, “satoshi”, with the continued vigorous development of the Lightning Network, is very likely to become the basic unit of valuation for Bitcoin in the next stage.
“If the entire industry uses satoshi as the pricing unit, then it will become a very important part of the Bitcoin blockchain. ” In May of this year, Mike Novogratz, CEO of Galaxy Digital, tweeted to suggest that the platform use “satis” as the platform Bitcoin unit.
Mike Novogratz explained that too many people think that Bitcoin is too expensive. He called on Coinbase , FTX, and Gemini to use satoshis as a unit of measurement to make Bitcoin more attractive to ordinary people.
Especially in conjunction with the Taproot upgrade at the end of the year, the privacy of the Lightning Network can be improved by making the channel look like a regular Bitcoin exchange, and perhaps it can make up for the status of Bitcoin as a “global currency” and make it positioned as a “digital gold” Have more advantages in the competition.
2021 may be the first year when “satoshi” gradually becomes the basic unit of valuation in the next stage of Bitcoin, and it is also the beginning of the return of the payment attribute of Bitcoin’s “global currency” to the center of the stage.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/twitter-announced-that-it-supports-the-bitcoin-lightning-network-more-grounded-than-facebooks-libra/
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