There are two 0s that might trigger Bitcoiners when mentioned: the 0 in 0 sat/byte and the 0 in 0 sat transactions. Lots of 0s here, but we will go through it now. If you think Bitcoin SV (BSV) can only be used by transacting satoshis from somewhere to somewhere else while paying transaction fees in satoshis to get the transaction done, you are wrong.
How HODLers want Bitcoin to be
People who own a lot of Bitcoins often have a problem with the idea of Bitcoin being used without satoshis involved. If Bitcoin could only be utilized by sending satoshis and paying transaction fees in satoshis, the demand for satoshis would indeed skyrocket once more and more users act within Bitcoin through apps and services.
But Bitcoin offers more than that. You will be able to pay transaction fees in whatever way miners are accepting to be paid in. You will also be able to write onto the Bitcoin ledger without moving a satoshi.
HODLers hate that, because their dream of infinitely price appreciating satoshis could come to an end.
Miners/transaction processors accept fiat for transaction fees
At the CoinGeek London conference 2020, Bitcoin SV dedicated miners/transaction processors elaborated on their plans to let customers pay transaction fees in fiat rather than in satoshis:
The idea is to offer customers “the Bitcoin experience” without “the Bitcoin hassle.”
In other words: customers of transaction processors should be able to get their transactions processed without having to obtain satoshis in order to pay the transaction fees. They will simply pay the transaction fees in fiat.
Imagine a big enterprise that wants to use Bitcoin for any data processing reason, but having to buy tons of Bitcoins first and then pray for the price of the Bitcoins to remain stable.
At CoinGeek London 2020, EHR Data Inc.’s representatives said:
“That’s going to generate 16 billion to 32 billion Bitcoin SV transactions. So when you look at those numbers, right, it’s an amazing rate, we’re talking 5-6,000 transactions per second, right? So it’s huge, and that’s why we went with Bitcoin SV.”
Do people expect EHR Data Inc. to buy up uncountable amounts of satoshis in order to have their transactions processed in the future?
Transaction processors will probably serve EHR Data Inc. conveniently without forcing “the Bitcoin hassle” upon their client.
Businesses won't hold satoshis, unless their business model is commodity speculation.
You just said it, it is all about fiat atm. Satoshis are a tool for miners, but miners want money, not necessarily satoshis.
— Michael Wehrmann (@MichaelWehrmann) November 7, 2020
In fact, you could argue that transaction processors will make sure their clients do not even have to touch Bitcoin at all, while still being able to enjoy all of Bitcoin’s benefits.
So transaction processors are offering 0 sat/byte transaction fees, which does not mean there is no transaction fee though. There is—but not necessarily to be paid in satoshis. 0 sat/byte does not mean “for free.”
0 sat transactions in Bitcoin SV?
So we understand that 0 sat/byte is possible, but what about 0 sat transactions in Bitcoin? Transacting in Bitcoin without spending Bitcoins?
It might be time to differentiate between Bitcoin the tokencoin and Bitcoin the network. In the Bitcoin network, you can operate without the Bitcoin token/coin.
We are able to construct transactions and send them to the Bitcoin network without satoshis being spent. If you send a transaction with a 0 sat output but pay the transaction fee, miners will process it.
Even a transaction with 0 sat output and 0 sat/byte transaction fee (but paying the miner in fiat or other ways, pre-arrangement necessary) is possible.
Yes, you read right: 0 sat/byte transaction fee and a 0 sat output.
All of this is controversial though and has been lively discussed recently:
What if the output has value without needing satoshis? Why should that be a requirement? I don't care about 'raising the value of BSV'. I care about earning payments from my customers…
— Elas Digital (@ElasDigital) November 8, 2020
I would be concerned if miners didn't want to be paid in BSV. The satoshi is what ensures that everybody is invested in each other. That is what ensures that everyone is cooperative. I made that point here: https://t.co/OWnL9oo1mG
— Daniel Krawisz – end mass scams with proof-of-work (@DanielKrawisz) November 8, 2020
This was true only during the bootstrapping phase. The network is what’s described in the white paper and the token issuance is designed to be phased out as a feature. The ledger network is Bitcoin. The subsidy is not Bitcoin. https://t.co/BaOReyOB2u
— iamledger (@iamledger1) June 12, 2020
Yes so if you want to create or spend a 0-value output you still need to add a non-zero value input and a non-zero value change output to the transaction in order to pay the tx fee.
— Shadders (@shadders333) November 7, 2020
I have no final conclusion to the “0 sat controversy” yet
There is no reason to worry about satoshis—you will be able to pay in satoshis as you like, but there will be other options, too.
Satoshis are finally going to compete with fiat in the Bitcoin network and not outside of it in speculative markets alone.
Bitcoin is a peer-to-peer electronic cash system. Many focus on the “peer-to-peer” part of the white paper title. Others focus on the “electronic cash” part of it. Few pay attention to the word “system” there.
See also: TAAL’s Jerry Chan presentation at CoinGeek Live on The Shift from Bitcoin “Miners” to “Transaction Processors”
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.