We say that #Bitcoin is infinitely divisible. But is that really true? \ stacker news ~bitcoin

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We say that #Bitcoin is infinitely divisible. But is that really true?

38 sats \ 21 comments \ @dpokey 9 Feb 2023 bitcoin

Yes. Here’s how:

A satoshi is the smallest unit of a bitcoin. But Lightning can transact with even smaller units while channels are open.

Milli-satoshis, or msats, are the native unit of the Lightning Network.

A milli-satoshi is simply 1/1,000th of a satoshi.

There are 1,000 milli-satoshis in 1 satoshi.

When the channel is closed and broadcast on-chain, the amount of msats is rounded down to the nearest satoshi.

Bookkeeping off-chain allows Bitcoin to be infinitely divisible👍🏻

https://i.imgur.com/VNKLXmt.jpeg

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10 sats \ 5 replies \ @WeAreAllSatoshi 9 Feb 2023 freebie

If msats are the native unit of the Lightning Network, do common Lightning wallet apps like Wallet of Satoshi, Muun, Blue Wallet not support specifying fractional sats in invoices by choice? Just wondering how we make msats usable to end users, and what would cause apps to support msats. Maybe the apps feel there isn’t a need yet given the rough value of 1 sat in the current market? Thought-provoking post, thank you.

0 sats \ 3 replies \ @pillar 9 Feb 2023

I can't think of anything preventing wallets from implementing milisat precision in invoices and payments. As you say, it's probably simply for simplicity and UX, since I don't think there is a strong market need for defining milisat amounts in wallets as of today.