Bitcoin SV: blockchain at the service of governance and business processes
Bitcoin is the first direct and most successful system to have used blockchain technology. Bitcoin’s architecture has caused a lot of concern and this has resulted in Bitcoin forks.
In a blockchain, there are two types of forks: the soft fork and the hard fork. Examples of Bitcoin hard forks are Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, Super Bitcoin, etc. One of Bitcoin’s most successful hard forks is Bitcoin Cash.
However, the release of Bitcoin Cash also saw the fork of the same blockchain to produce the Bitcoin SV blockchain. So, Bitcoin SV is a hard fork of Bitcoin Cash at block 556766, on November 15, 2018, and for every Bitcoin Cash (BCH), an owner got 1 Bitcoin SV (BSV).
The weaknesses of Bitcoin
The motivation behind the development of Bitcoin SV is rooted in Bitcoin’s weaknesses. First, it is slow in terms of transaction speed. This is related to the time it takes to create a single block. It processes an average of 5 transactions per second.
Bitcoin’s next challenge is scalability. No framework is built on it to support the development of layer two applications. However, there are third-party systems designed to solve this problem.
The block size of Bitcoin is 1MB with a block time of 10 minutes. Looking at the scope of blockchain technology, 1m is too small and cannot be useful for large-scale activities. Bitcoin SV preys on these weaknesses while retaining the security advantage of the Bitcoin network.
Features of BSV Blockchain
Bitcoin SV has similar characteristics to Bitcoin with some differences. Here are some of its features:
Bitcoin SV hit a record TPS of 9000 with its Scaling Test Network (STN). It was 2,800 in 2020, but increased due to some system upgrades. The goal is to soon reach 4 million per second.
Bitcoin did not allow large block storage and that is why it is so slow. Bitcoin SV has a larger block size, holding more data at a time. In 2021, the network set a new record by processing a 638MB block.
Proof of work is one of the protocols used on blockchain systems. Others are Proof of Stake, Proof of Authority, Proof of Capacity, Proof of Activity, etc. BSV uses proof of work and that’s why it uses high-level machines for mining.
The total supply of Bitcoin SV is 21 million like BTC and therefore we cannot have more than this amount in circulation.
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Why use the BSV blockchain?
With the above features, especially the three main ones, BSV is usable for enterprise level applications and services. Examples include Blockchain for Government Initiative, Blockchain Policy & Law, and Blockchain for education.
Here is a breakdown of these direct Bitcoin SV use cases:
- Micro and nano-transactions
Using BSV gives users the ability to send and receive payments for products online, even at minute values. This will enable new micro and nano-payment business models that are cheaper than those of Visa and others.
Bitcoin and all other blockchains like Bitcoin SV have the advantage of securing the data stored on it. It is difficult or almost impossible to output data written to Bitcoin SV. Thus, anyone can verify or certify data and actions stored and performed respectively in BSV.
Here, organizations and individuals can create messages or data and grant access only to people they choose. For example, training content will only be sent to those who have paid for it. This can be synced with their wallet addresses to ensure there is no copying and sharing with anyone else.
Due to the size of the blocks created in the BSV blockchain and its decentralized nature, larger data can be stored and managed in the blockchain. Since most companies use data for business and internal operations, this will be a good source of low cost data storage.
- Indelible tamper evident
The block creation mode which consists of data makes it difficult for anyone to edit or modify what has been created and saved. BSV sometimes provides assurance that whatever is recorded is what will be retrieved, thus reducing any risk of tampering.
Ethereum introduced smart contract functionality to the blockchain space and since then many blockchains have been created with the ability to initiate and execute smart contracts. This will eliminate the need for these parties to control contracts between organizations and organizations. With smart contracts, execution is automated. Bitcoin Smart Contract on BSV enables the deployment of autonomous agents, as described in the ethereum whitepaper.
For entertainment-based businesses, NFT creation is an important part of the operation and BSV provides a good platform for NFT minting. Minting is done at very low cost and has a large storage space of up to 1g stored on-chain.
And then for governance, BSV offers a very elaborate voting support infrastructure. Thus, different governments can build their voting system on the BSV blockchain ensuring that the data is secure and properly recorded. In terms of regulation, BSV is adaptive with policies to guide activities conducted on the blockchain.
The real bitcoin
There has been controversy over the real bitcoin. Is it BTC or BSV? BSV argued that BTC deviates from Satoshi Nakamoto’s real and true view, and as such, BSV is the real bitcoin, as it is in Satoshi’s image of bitcoin. At one time, Bitcoin Cash was considered the main, and having Satoshi’s vision, until he started deviations. So, Bitcoin SV is the real bitcoin according to BSV supporters.
The BSV blockchain is the platform that its proponents claim unlocks the vast potential of the Bitcoin network. With faster transaction rate, larger size to store data and decentralized function, BSV blockchain is the go-to platform for enterprise functionality.
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