Bitcoin, SegWit, and reduced transaction fees
SegWit means segregated witness, and is the practice of abstracting transaction signatures from the bitcoin transaction. This frees up the block for more transactions, and if you have migrated your wallet to the SegWit protocol you will enjoy reduced fees on transactions. ShapeShift and Coinbase already natively support SegWit.
See this ShapeShift Help Center article, What is SegWit? for more information.
Lightning Network
Building on features of SegWit, Bitcoin developers have created the Lightning Network. This network works in tandem with the base blockchain, by depositing funds to establish a channel. The application manages its users transactions without establishing custody of funds, until at some point the balances that the channel is keeping track of are published and broadcast as an official version on the blockchain. Generally this is meant for scalability and allows for micro transactions which would normally be dwarfed by their transaction fees.
Lightning Apps (lApps)
Some prominent apps utilizing this layer 2 protocol include the following:
Additional lapps are listed at lapps.co.
Units of Bitcoin
Unit | Abbreviation | Decimal (BTC) | Alternate names | Info |
Algorithmic maximum | 20,999,999.9769 | Calculation | ||
tam-bitcoin | 2,814,749.76710656 | 1,0000,0000 tonal | ||
mega-bitcoin | MBTC | 1,000,000 | Rare in context | |
kilo-bitcoin | kBTC | 1,000 | Rare in context | |
hecto-bitcoin | hBTC | 100 | Rare | |
Initial block subsidy | 50 | Until block 210000 | ||
bong-bitcoin | ᵇTBC | 42.94967296 | 1,0000 tonal | |
Current block subsidy | 6.25 | block | As of halving day 2020, block 630000 | |
deca-bitcoin | daBTC | 10 | Rare | |
mill-bitcoin | ᵐTBC | 2.68435456 | 1000 tonal | |
bitcoin | BTC | 1 | coin | SI base unit |
san-bitcoin | ˢTBC | 0.16777216 | 100 tonal | |
deci-bitcoin | dBTC | 0.1 | Rare | |
ton-bitcoin | ᵗTBC | 0.01048576 | 10 tonal | |
centi-bitcoin | cBTC | 0.01 | bitcent | Formerly frequent2 |
milli-bitcoin | mBTC | 0.001 | millibit, millie | Occasional |
bitcoin | TBC | 0.00065536 | Tonal base unit | |
bitcoin-ton | TBCᵗ | 0.00004096 | 0.1 tonal | |
bitcoin-san | TBCˢ | 0.00000256 | 0.01 tonal | |
micro-bitcoin | μBTC | 0.000001 | bit | Frequent |
bitcoin-mill | TBCᵐ | 0.00000016 | 0.001 tonal | |
0.0000001 | finney3 | |||
bitcoin-bong | TBCᵇ | 0.00000001 | 0.0001 tonal | |
sat | 0.00000001 | satoshi | Blockchain value | |
msat | 0.00000000001 | millisatoshi4 | Payment channel value |
I’m less enamored by bitcoin, because it only allows you to make transactions, and often has enormous price swings. For information about a cryptocurrency with some more utility and the ability to build upon its foundation, see Ethereum.
Bitcoin shares the same benefits of all cryptocurrencies (the mathematical proofs), in that you can secure ownership through maintenance of your private keys. Also in general, it may appreciate compared to USD as inflation occurs.
Coinbase is offering bitcoin for new users who buy or sell $100 USD worth of any cryptocurrency.