🤯 “Bit” is the smallest and fundamental unit of information in computing and digital communications proposed by Claude Elwood Shannon, the "father of information theory", in 1948.
💻Bits are critical because they are the foundation for all digital data, which includes bitcoin and all other cryptocurrencies.
🙌 $DMT-BIT pays homage to the OG "Bit" - the fundamental unit of info that powers Bitcoin and the digital world. It's like a tribute to Claude Shannon, the father of information theory!
📈 The value of each $DMT-BIT is tied to the mining difficulty of the corresponding block. Higher difficulty = higher value.
🔓 Best part? You can mint $DMT-BIT for free (minus the network fee, ofc)!
Countless cryptocurrencies, exchanges, organizations, and media outlets take the word “Bit” in their names:
Bitcoin: The cryptocurrency with the highest global market capitalization
IBIT: The ticker symbol for BlackRock's Bitcoin ETF, which is managed by the world's largest asset manager BlackRock
ByBit: One of the top 3 global Bitcoin futures trading platforms
Bitmain: The world's largest manufacturer of mining rigs, with its flagship product being the Antminer
Is this an expression of love for Bitcoin? Or is it unconsciously on a mission of some sort? Today, we're going to unravel the mystery behind “Bit”.
Bitcoin has been underestimated during the past two bull markets because of the widespread belief that it could only serve as a store of value. As a result, the focus has been on other chains such as Ethereum, leading to the emergence of tens of thousands of thriving applications and a vibrant crypto ecosystem worth trillions of dollars.
From Ethereum to Layer2, from BNB Chain to Solana, as TPS improved, we saw ICOs, IDOs, IEOs, FTs, NFTs, DeFi, Metaverse, and GameFi happening on different PoS public chains, but in very similar ways. It's boring and sends us into a spiral of COPY and FOMO. So we need something new, we need an innovative way to play.
Over the past year, the Ordinals theory has triggered a butterfly effect in the crypto world. By utilizing Satoshi's method of building the Bitcoin ecosystem, known as digital artifacts, a frenzy for Bitcoin ecosystem development and Bitcoin “archaeology” has been ignited.
First, Bitcoin Builders mined out rare Satoshis, such as the Pizza Satoshis and Satoshi Nakamotos, which hold great commemorative significance. Then, the Digital Material Theory (DMT) proposed a brand-new model for issuing non-fungible assets using block data, while the Runes protocol enables the issuance of homogenized tokens utilizing UTXOs.
All of these developments have brought fresh perspectives and epiphanies to Bitcoin builders, allowing them to revel in the joy of discovering a new continent of Bitcoin. We are witnessing the dawn of innovation in a new bull market, marking the beginning of the unification of all chains.
Based on a comprehensive study of various protocols that have emerged over the past year, including Ordinals, BRC-20, Bitmap, BRC-420, TAP, Atomics, Runes, Taproot Asserts, and DMT, NavigatorLabs identifies patterns and trends in finding alpha in Bitcoin ecosystem, and published the "Bit Native Economics Playbook" and the "Bit Native Six-Element Navigation Map".
The six elements are Satoshis, UTXO, Blocks, Data, PoW, and Bit. Of these, “Bit” is still the least known, but it is one of the critical foundations for the existence of the other five elements.
“Bit”, an abbreviation of Binary Digit, is the smallest and fundamental unit of information in computing and digital communications. It can have one of two values: typically represented as either a 0 or a 1. In computing, bits are crucial because they form the foundation of all digital data.
The concept was originally proposed by Claude Elwood Shannon, the "father of information theory." In his landmark 1948 paper entitled "A Mathematical Theory of Communication", Shannon came up with a mathematical framework for quantifying information and introduced the idea of measuring information in bits.
Shannon, who was also a mathematician, electrical engineer, and cryptographer, defined a bit as the fundamental unit of information that represents a choice between two equally possible alternatives. He showed how to encode information using binary digits (bits) to efficiently store, transmit, and process data in digital form. This concept revolutionized the fields of communications, computing, and cryptography.
In a nutshell, by organizing bits into sequences, computers can represent complex data such as numbers, text, images, etc., which laid the foundation for cryptography as well as cryptocurrencies such as Bitcoin.
The creator of Bitcoin, known by the pseudonym Satoshi Nakamoto, combined the words "bit" and "coin" to create the name "Bitcoin" to represent the digital nature of the currency and its reliance on cryptographic principles.
Standardized systems of measurement have been instrumental in driving economic and social progress throughout history. During the Qin Dynasty's unification of the six Zhou Dynasty states, nationwide standards were instituted for critical areas such as rail gauge dimensions, written language, calendars, units of weight and measurement, and currency denominations. The implementation of these unified standards facilitated growth and development across the empire.
The measurement standards developed in ancient Greece and ancient Rome had a profound influence on the evolution of modern international systems of measurement. As global integration increased, the first international standard for measurement was established by French manufacturers and merchants in 1790.
“Bit” and Bitcoin share an inextricable link, akin to twin brothers: “Bit” provides the fundamental unit for quantifying Bitcoin, on the other hand, Bitcoin expands the applicability of the binary digit to new frontiers.
Hash value: A reference to the hash value of the previous (parent) block, 32 bits
Difficulty coefficient: The difficulty target of the proof-of-work algorithm for this block, 4 bits
Merkle tree: The hash of the Merkle root of all transactions in this block, 32 bits
Block size: The size of all transactions in this block, with a maximum of 33,554,432 bits (4M)
A "bit field" refers to a specific portion of a Bitcoin block header, usually represented as a hexadecimal value. This representation allows for efficient storage and transmission of the difficulty target, which is crucial for mining and maintaining the security of the blockchain.
According to the Bitcoin mining difficulty calculation formula, the lower the bits value, the higher the difficulty, and the greater the computing power and mining costs required.
Our analysis revealed a correlation: the lower the bits value, the more leading zeros appeared in the corresponding hash value.
In Bitcoin mining, the difficulty is directly tied to the number of leading zeros required in the hash value. Fewer bits translate to more leading zeros, which in turn necessitates a significant increase in computing power to solve the cryptographic puzzle and successfully mine a block.
Therefore, it is reasonable to assume that Satoshi Nakamoto named Bitcoin with "Bit" as a tribute to the significance of "Bit", an homage to Shannon, a continuation of information theory, and a testament to the development of information over the past century. It highlights Bitcoin’s role as digital gold in the information realm, and its blockchain is the cornerstone of building a Bitcoin-centric society.
This consistency also explains why “Bit” is one of Bitcoin's six key elements, as well as the foundation for the other five.
Since it all started with "Bit," let's follow that path, empower Bitcoin, and contribute our small part to carry on that mission.
$DMT-BIT Issuance Rules and Quantity:
Protocol: DMT & NAT Standard
Progress: 25%, currently ranked 2nd in terms of holder count
Approach: Free minting, only requires paying miner GAS fees (minting when GAS is low)
Quantity: Matched with blocks. 1 block can mint 1 $DMT-BIT. Currently, there are over 830,000 blocks, which means over 830,000 $DMT-BITs. However, the value of each $DMT-BIT varies, depending on the difficulty of mining the corresponding block. The greater the mining difficulty, the higher the value of the $DMT-BIT.
Both $DMT-BIT and Bitcoin are derived from the information unit “Bit”
$DMT-BIT has the same name as Bitcoin
$DMT-BIT references the 11th element, BITS, in DMT, and shares the name with the block element bits
$DMT-BIT can be interpreted as the tokenization of the Bits field in the block element
The value of $DMT-BIT and the cost of PoW mining will be quantum entangled
$DMT-BIT's quantity is derived from the bits field, and it shares the same name as “Bit”, allowing $DMT-BIT to be interpreted as the tokenization of bits.
As aforementioned, the smaller the bits value, the higher the difficulty of mining and the greater the computing power required. If the mining cost is higher, it means that the corresponding price of $DMT-BIT will also be higher.
The value of $DMT-BIT and the cost of PoW mining will be quantum entangled.
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