What is Bitcoin SV?
Bitcoin SV (BSV) is a full-node implementation and a fork of Bitcoin Cash (BCH). It attempts to restore the original Bitcoin protocol as set out by Satoshi Nakamoto in version 0.1 of Bitcoin, keeping it both stable and able to massively scale. Its native cryptocurrency is BSV.
Reflecting its mission to fulfil the vision of Bitcoin, the Bitcoin SV name represents the ‘Satoshi Vision’, according to the team behind the project. Created at the request of leading BCH mining enterprise CoinGeek and other miners, Bitcoin SV aims to provide a solution to the double-spending problem using a peer-to-peer network. Under this context, BSV functions like Bitcoin as electronic cash for users that support the network.
A brief history of Bitcoin SV
Bitcoin SV is led by nChain, a research and development technology startup producing tools, protocols, and apps to enable global blockchain growth. Its founder is Craig Wright, an Australian computer scientist who has sparked controversy after repeatedly claiming that he is Satoshi Nakamoto. These claims are viewed as false by much of the media and the cryptocurrency community.
On 15 November 2018, Bitcoin Cash split into two through a hard fork. The dominant Bitcoin Cash client, the Bitcoin ABC faction, eventually obtained the bulk of the network hash rate, kept the name Bitcoin Cash, and continued to follow its existing protocols. BSV, on the other hand, sought to “restore the original Bitcoin protocol.”
The final decision to hard fork from Bitcoin Cash resulted from a debate about canonical transaction ordering, which allows the graphene algorithm to run more efficiently and script enhancements enabling oracle data to be added to the blockchain.
In opposition, Bitcoin SV rejected these recommendations with the intent to elevate the block size to 128 MB (eventually extended to 512 MB in a hard fork) and restore specific opcodes from the Bitcoin 0.1.0 protocol implementation. Elevated block capacity has two main benefits: more transactions per minute and lower transaction fees. However, its need for increased computing power could potentially deter many from participating in the confirmation power, leading to concerns over security and centralisation.
How Bitcoin SV works
Like BTC, BSV also employs proof of work (PoW) consensus; where it differs is in its block size.
Bitcoin SV says that it delivers high transaction throughput through significant on-chain scaling. The blockchain’s Genesis upgrade took place in February 2020, meaning there was no more block size restriction on the network.
Bitcoin SV allows for larger block sizes because there is no size restriction for a BSV block; the blockchain can handle big data and other applications that global organisations require. The Bitcoin SV network established a global record in August 2021 by processing a 2 GB block. As a result, the BSV network can store and analyse massive volumes of data, taking it beyond merely a payment system and opening it up to a wide range of use cases. Its blockchain is capable of processing 50,000 transactions per second.
Bitcoin SV enables instant transactions, meaning that each transaction has a 99% probability of being validated and included in the next block in the blockchain. According to the business risk scenario, the ‘uncertainty’ of 1% is addressed. In business-to-business use cases, the real danger of double-spending is negligible, owing to the immutable proof the double-spender would photographically sign against oneself. Insurance services are nonetheless available to reduce this danger entirely, if desired.
What is Bitcoin SV (BSV) used for?
The main function of BSV as the native token of the Bitcoin SV blockchain is as a medium of exchange, similar to Bitcoin itself.
According to the Bitcoin Association, a website affiliated with Bitcoin SV, BSV also has use cases in payments, social media, and online gaming. Blockchain gaming platform Kronoverse built its role-playing game CryptoFights on the BSV blockchain, which is also used by the online casino platform BitBoss. Money Button and Handcash are some of the payment platforms that accept BSV. In addition, Twitch built its social media app entirely on Bitcoin SV. These companies expand BSV’s use cases beyond its core function as digital money.
