What is Bitcoin SV (BSV)? – Bitcoin vs Bitcoin SV
Before we know about Bitcoin SV, let us talk about Bitcoin first. Bitcoin opened the way for many of the cryptocurrencies that exist today. Although Bitcoin is the most valuable cryptocurrency network in market capitalization, its technology has become somewhat obsolete. As a result, most of the community members support network upgrades.
The Bitcoin founder recommends forking as a reliable solution. Over the years, several BTC forks have been introduced. Bitcoin Cash is a widely used Bitcoin fork that more effectively solves the problem. However, Bitcoin Cash began to deviate from Satoshi Nakomoto’s original vision. As a result, some community members decided to implement a network hard fork based on Satoshi Nakomoto’s principles.
What is Bitcoin SV (BSV)?
Bitcoin SV, also known as Satoshi Vision, is a hard fork of Bitcoin Cash that aims to meet the crypto industry’s advanced standards while remaining true to Satoshi’s vision. The network’s primary goal is to improve scalability, security, and stability. As a result, transactions are processed more quickly while ensuring user safety.
The network is committed to enabling a diverse range of sophisticated blockchain applications. Since it has removed the Bitcoin network’s block size restrictions, Bitcoin SV can process roughly 50,000 transactions per second. As a result, its transaction fee is much lower than Bitcoin’s.
Bitcoin SV History
Due to community disagreements, Bitcoin Cash was initiated as a hard fork of Bitcoin in 2017, and Bitcoin SV was introduced as a hard fork of BTC Cash in 2018. In 2018, the BTC Cash community was split into two factions.
Jihan Wu and Roger Ver led the first group, while Calvin Ayre and Craig Wright led the second. Craig believes an 8MB block size is insufficient to meet the increasing demand for cryptocurrencies. He desired an increase in block size to 128MP. However, his proposal was rejected by the other group.
In 2018, Wright and other Bitcoin community members launched Bitcoin SV. Since of his clout in the crypto community, he even started a “hash war” against Bitcoin Cash. Both coins, however, survived, and Bitcoin Cash has become more prevalent than Bitcoin SV.
With its bigger block size and developer engagement, Bitcoin SV also drew the vast majority of investors. So far, Bitcoin SV has not reached the limits of its block size, but investors believe it has enormous future potential.
How does Bitcoin SV work?
Bitcoin SV uses an unbounded block size system to determine block size automatically. It is primarily based on the original Bitcoin white paper, but its overall block size is 4GB as opposed to the original Bitcoin network’s block size of 1MB.
Bitcoin SV employs the Proof-of-Work (PoW) consensus protocol for transaction processing. When a user requests a transaction, the network generates a mathematical equation. Network participants (miners) solve this equation by combining their computing power.
The network rewards the miner who confirms the transaction with a certain quantity of Bitcoin SV tokens. Miners are typically rewarded about 6.25 BSV for verifying each transaction. Furthermore, creating a new block within the BSV network takes about 10 minutes.
The intriguing thing is that miners can choose the size of the blocks they want to mine. To stay ahead of the competition, participants must increase their computational power. Since it processes transactions quickly and has very low transaction fees, Bitcoin SV is a more appealing option for day-to-day transactions.
Bitcoin Vs. Bitcoin SV
Bitcoin is, without a doubt, the most valuable cryptocurrency in market capitalization. However, it cannot meet the growing demand for the cryptocurrency industry. The Bitcoin network can process only 3-5 transactions per second. It means most people must wait for their transactions to be processed.
On the other hand, Bitcoin SV can process 50,000 transactions per second. Furthermore, the developers are working to increase its capacity. As a result, it will be capable of handling approximately 100,000 transactions per second. Users won’t have to wait for hours to finish their transactions.
The transaction fee on Bitcoin is quite high, and it even rises when there are additional transactions awaiting verification. In this case, the network prioritizes transactions based on their fees. As a result, it cannot be used for day-to-day transactions.
However, the transaction fee for Bitcoin SV is extremely low. As a result, it can be used for micropayments as well. Bitcoin networks are only capable of processing transactions. Whereas Bitcoin SV also supports advanced applications such as smart contracts and NFTs.
The block size of Bitcoin is 1MB, whereas the block size of Bitcoin SV is 1GB. As a result, Bitcoin SV can hold more data in a single block. However, because only a small number of individuals are involved in creating a block, it reduces network security. People continue to prefer Bitcoin since security is a primary concern for users transitioning to the crypto industry.
Bitcoin SV Tokenomics
BSV is the network’s native token and is used to transfer value within the network. Users must also pay the transaction fees in BSV tokens. BSV has a market cap of around $900 million and a circulating supply of 19.2 million tokens. It has a total supply of 21 million tokens that will be distributed over time. BSV is in the 55th rank of cryptocurrencies in market capitalization.
Conclusion
Bitcoin Cash’s hard fork is Bitcoin SV. It is intended to keep up with the growth of cryptocurrencies by Satoshi Nakamoto’s vision. It supports advanced applications such as smart contracts and NFTs and can process 50,000 transactions per second. Please get in touch with us if you require any additional information about how BSV works.