Bitcoin paved the way for many cryptocurrencies that are available today. Although Bitcoin is the biggest crypto network in terms of market cap, its technology has become a little outdated. That’s why a majority of community members are in the favor of upgrading the network.
Forking is a reliable solution recommended by the Bitcoin founder. A number of Bitcoin forks have been introduced over the years. Bitcoin Cash is a popular Bitcoin fork that solves the problem more effectively. However, Bitcoin Cash started deviating from the true vision of Satoshi Nakomoto.
Therefore, some community members decided to introduce a hard fork of the network that could follow the principles of Satoshi Nakomoto.
What is Bitcoin SV (BSV)?
Bitcoin SV, aka Satoshi Vision, is a hard fork of Bitcoin Cash designed to meet the advanced standard of the crypto industry while keeping up with Satoshi’s vision. The network is mainly focused on providing better scalability, security, and stability. Thus, it processes transactions faster while ensuring users’ safety.
The network is dedicated to supporting a wide range of advanced blockchain applications. Bitcoin SV can process around 50,000 transactions per second because it has waived off block size restrictions found in the Bitcoin network. Thus, its transaction fee is much cheaper than Bitcoin.
Bitcoin SV (BSV) Brief History
Bitcoin Cash was introduced as a hard fork of BTC in 2017 and Bitcoin SV was launched as a hard fork of Bitcoin Cash in 2018 due to several disagreements among the community. The Bitcoin Cash community was divided into two groups in 2018.
The first group was led by Jihan Wu and Roger Ver whereas the second group was led by Calvin Ayre and Craig Wright. Craig shared the opinion that an 8MB block size isn’t enough to accommodate the rising demand for cryptocurrencies. He wanted to increase the block size to 128MP. But the other group didn’t agree with his idea.
Wright introduced the Bitcoin SV in collaboration with other community members in 2018. He even started a “hash war” against Bitcoin Cash due to his influence in the crypto community. However, both the coins survived but Bitcoin Cash is now more popular than Bitcoin SV.
Bitcoin SV also attracted a vast majority of investors with its larger block size and developer engagement. So far, Bitcoin SV hasn’t reached the limits of its block size but the investors believe that it has massive potential in the future.
How Does Bitcoin SV Work?
Bitcoin SV automatically determines the block size with the help of an unbounded block size system. It’s primarily designed according to the original Bitcoin white paper but its overall block size is 4GB whereas the original Bitcoin network has a block size of 1MB.
Bitcoin SV uses Proof-of-Work (PoW) consensus protocol for transaction processing. The network generates a mathematical equation whenever a user requests a transaction. The network participants (miners) solve this equation by incorporating their computing power.
The network rewards a certain amount of Bitcoin SV tokens to the miner who validates the transaction. On average, the miners are rewarded around 6.25 BSV for validating each transaction. Furthermore, it takes around 10 minutes to create a new block within the BSV network.
The interesting part is that the miners have the freedom to choose the size blocks they’re willing to mine. The participants need to increase their computation power to stay ahead of others.
Bitcoin SV is a more attractive option for day-to-day transactions because it processes transactions really quickly and it has very low transaction fees.
Bitcoin Vs Bitcoin SV
Bitcoin is undoubtedly the largest cryptocurrency in terms of market cap. However, it can’t accommodate the rising demand for the crypto industry. Bitcoin network can only process 3-5 transactions per second. It means a vast majority of people have to wait in the queue for their transactions to be processed.
On the contrary, Bitcoin SV can process 50,000 transactions per second. And the developers are even working on improving its capacity. As a result, it will be able to process around 100,000 transactions per second. So, the users don’t need to wait for hours to complete a transaction.
The transaction fee on Bitcoin is pretty high and the fee even surges when there are more transactions waiting to be verified. In this situation, the network prioritizes the transactions based on the fee attached to the transaction. So, it can’t be used for day-to-day transactions.
But Bitcoin SV has a very low transaction fee. Thus, it can also be used for micropayments.
Bitcoin networks can only process transactions. Whereas the Bitcoin SV supports advanced applications like smart contracts and NFTs as well.
Bitcoin’s block size is 1MB whereas Bitcoin SV’s block size is 1GB. Thus, Bitcoin SV can store more data in a block. But it also reduces the network’s security because only a small group of people are involved in creating a block.
Therefore, people still prefer using Bitcoin because security is one of the major concerns of users that are moving to the crypto industry.
Bitcoin SV Tokenomics
BSV is the native token of this network that is used for the transfer of value within the network. The users also pay transaction fees in the form of BSV tokens. With a circulating supply of 19.2 million tokens, BSV has a market cap of $1 billion.
It has a maximum supply of 21 million tokens that will be released over time. BSV ranks among the 50 best cryptocurrencies in terms of market cap.
Conclusion
Bitcoin SV is a hard fork of Bitcoin’s hard fork (Bitcoin Cash). It’s designed according to Satoshi Nakamoto’s vision to meet the rising demand for cryptocurrencies. It can process 50,000 transactions per second and supports advanced applications like smart contracts and NFTs.
If you need more information about how Bitcoin SV works, feel free to get in touch with us.
