Had this same thought yesterday
1 satoshi = 1 bit and 10000000 bits = 1 bitcoin
as well the bit is another altcoin that is tied to the blockchain and transferable to bitcoin in equal value
I never had the patience to work it out completely but it is a similar idea, I like where you are going with this
really do not like the term satoshi but i suppose it does have a ring to it, 100 satoshi for a cup of coffee as opposed to 100 bits for a cup of coffee
using the word bits is smaller and easier
+ 1
Actually, the word "bit" is already a standard. I'm not suggesting a new terminology, just a new way of processing smaller transactions so to allow for smaller fees to make them actually possible.
Here is the predefined values:
http://www.btcsatoshi.com/1 Satoshi is the smallest unit. 100 Satoshi = 1 Bit. 100,000 Saoshi = 1 Millibitcoin. 100 Million Satoshi = 1 Bitcoin.
Bitcoin price fluctuates so much that I don't even look at denominations. When I am sending or spending coins on something usually it is priced in dollars, and has some widget that shows the current price in bitcoin as well. I usually just whip out my phone, open my blockchain app and scan the QR code, never looking or typing in some 8 digit number and trying to properly place the decimal. When I am sending money to friends I usually just type in 5 dollars, and whoosh, there goes 5 dollars in bitcoin straight to my friend. I am never like hey I am about to send you 500 millibits, because in 2 years 500 millibits might be 10,000 USD. So I am not going to get used to terms just yet.
Oh, I know that the average user won't really care. They measure everything in fiat and adjust accordingly. I'm talking about more on the back end to make it possible to send small amounts of bitcoin without congesting the network. Of course, once implemented it might make it easier for the average person to use the values once Bitcoin becomes the world reserve currency.
As far as mining goes, thats way to much to change for such a small gain on the mining computations side. Its already configured properly to work down to the satoshi with no problem. The software on the user side would turn my 600 bits into .00000 whatever it is, to be properly processed by miners and the blockchain.
I know that it LOOKS that way, but the point is to use a separate kind of chain optimized for smaller transactions with smaller data sizes. If, for example, you can process 10 times as many small transactions with the hash power required to process 1 normal transaction the smaller fees end up balancing out, and might actually benefit the miners even more. The only question is if the suggestion would actually result in that type of gain which is what I was hoping to get feedback on.
The difference here is that 0.00000001 Bitcoins requires 9 digits of information whereas converting them to a different form of data called bits would only use 4 digits of data. In actual computer terms a single digit on a screen is represented by data and the more digits you add the more data that is required.
What if "bits" were an actual coin? Instead of being created via mining, you "destroyed" an amount of bitcoin to create an equivalent number of bits
no to this part.
any concept involving destroying bitcoins is foolish.
You didn't read it all the way through. The point is to not create new Bitcoins outside the existing algorithm. If you convert 1 Bitcoin to 100 Million Satoshi you don't want to be dealing with an exchange rate. You want them to actually be equal in value. The only way to do that is to make that 1 Bitcoin disappear while the 100 Million Satoshi exist and then the 100 Million Satoshi disappear when the 1 Bitcoin exists.
It's not increase or decreasing the number of Bitcoins.i think this will probably spark peoples imaginations to attempt to get dogecoin (due to popularity) to be this fixed/stagnant exchangeable coin for 100sats.. and maybe eventually litecoin for exchangeable value for milibitcoin...... who knows..
I really doubt that any altcoin, as they exist right now, can ever be directly equal in value to any specific denomination of Bitcoin at any reasonable consistency. The problem is that each altcoin creates it's own coin in it's own way at it's own rate. Then there are issues of supply and demand. You might have more people selling one coin and buying another. The values fluctuate each time and exchange takes place. 1 American dollar can never be expected to be exactly equal in value to 100 Canadian pennies for very long if ever.
However, some altcoins have been optimized for smaller transactions. If we took that feature of an altcoin, took away their ability to create new coins, and made them directly transformable to and from Bitcoin it would guarantee that the value remains fixed just as a an American dollar can never be worth more or less than 100 American pennies.
either way 'destroying' denominations of bitcoin (permanent removal of small amounts of bitcoin from circulation) is the ludicrous part of your idea
ya, you completely missed it. I even explained specifically that the value is fixed and specifically said that nothing new is being created and said that it worked the other way around.
There is no permanent removal from circulation.If you want to think of an analogy, take a dollar and 100 pennies. In fiat both exist at the same time, but that limits versatility. Now imagine that 1 dollar can magically be turned into 100 pennies. The dollar no longer exists, but now 100 pennies do. While the pennies exist that dollar doesn't. Now imagine that you can take 100 pennies and magically fuse them into a dollar. Those pennies no longer exists, but now the dollar exists. The difference between saying 1 Penny and .01 dollar is in the amount of data required to store the value. Smaller values with shorter transaction details is really the goal here.
If we had a limit of 21 Million dollars in the world and they were all turned into 2100 Pennies the value would remain fixed. If they were all turned back into dollars the value would also remain fixed. There is no change in how much money is in circulation, only the form and way it circulates. The wallets would still store the Bitcoin the same way. You will still see the same number of Bitcoins. When you send a really small number you don't even see the conversion taking place, except for when it comes time for the paying of fees. That's just an analogy I'm using to get the idea across.