What is Bitcoin SV (BSV)?

October 26, 2024
8 min read

In 2018, a new chapter in the world of cryptocurrency began when Bitcoin SV (Satoshi Vision) appeared from a hard fork of Bitcoin Cash. This move sparked debates among crypto enthusiasts and experts alike, as it was intended to return to the original vision that Satoshi Nakamoto outlined in the Bitcoin whitepaper. Bitcoin SV (BSV) aimed to address some of the limitations found in Bitcoin and Bitcoin Cash, particularly regarding scalability and transaction speed. It quickly gained traction among those who believed in its potential to fulfill the promise of a truly decentralized and efficient cryptocurrency.

Bitcoin SV has positioned itself as the true continuation of the original Bitcoin blockchain. However, its journey has not been without controversy and competition. Bitcoin SV strives to stand out by offering unique features and a distinct approach to blockchain technology. Argoox will explore the history, workings, and future of Bitcoin SV in this article while shedding light on its strengths and weaknesses compared to its predecessors.

History and The Vision Behind Bitcoin SV

Bitcoin SV was made from a split from Bitcoin Cash, which BCH was a fork of the original Bitcoin network. The fork occurred in November 2018, led by Craig Wright and his team at nChain, who argued that Bitcoin Cash was straying from the vision set out by Bitcoin’s mysterious founder, Satoshi Nakamoto. Wright and his supporters believed that Bitcoin SV could restore the original protocol while focusing on scalability and faster transactions.

Their goal was to create a cryptocurrency that could handle massive volumes of transactions while maintaining low fees, making Bitcoin SV a more practical option for global adoption. This vision was particularly appealing to businesses and developers looking for a reliable platform for building blockchain-based applications.

Who is the Founder of Bitcoin SV?

The primary figure behind Bitcoin SV is Craig Wright, who was an Australian computer scientist and entrepreneur that claims to be the person behind the pseudonym Satoshi Nakamoto. Wright has been a controversial figure in the cryptocurrency space due to his claims and legal battles. Nevertheless, his company, nChain, played a pivotal role in the development and promotion of Bitcoin SV as a solution to the scalability problem faced by other versions of Bitcoin.

How Does Bitcoin SV Work?

Bitcoin SV functions on a proof-of-work (PoW) consensus mechanism, similar to Bitcoin and Bitcoin Cash. However, it differentiates itself through its focus on larger block sizes. Bitcoin SV allows for block sizes of up to 4 GB, compared to Bitcoin’s 1 MB limit and Bitcoin Cash’s 32 MB. This enables Bitcoin SV to process thousands of transactions per second, making it more suitable for enterprise-level applications.

What is Bitcoin SV Used For?

Bitcoin SV is designed to serve as both a peer-to-peer payment system and a platform for building decentralized applications (dApps). Its larger block size allows it to handle significant volumes of transactions, which makes it appealing to businesses looking for efficient payment systems and developers who want to create scalable blockchain solutions.

Key Features of Bitcoin SV

Scalability: Bitcoin SV (BSV) boasts some of the largest block sizes in the industry, allowing it to handle transactions in higher volume compared to Bitcoin and Bitcoin Cash.
Low Transaction Fees: Due to its ability to process more transactions per block, Bitcoin SV keeps fees low, which makes it attractive for micro-transactions and business applications.
Enterprise-Ready: The network aims to provide a stable protocol for businesses looking to build blockchain solutions without worrying about frequent updates or hard forks.

Bitcoin SV vs. Bitcoin and Bitcoin Cash

Bitcoin SV, Bitcoin, and Bitcoin Cash all stem from the original Bitcoin blockchain, but they diverged due to differing views on scalability, decentralization, and transaction speed.

Philosophy and Vision:

Bitcoin (BTC) focuses on decentralization and security, acting as a store of value with a small block size of 1 MB to maintain decentralization.
Bitcoin Cash (BCH) was created to enhance transaction speed and lower fees, with a larger block size of 32 MB, aiming for everyday transactions.
Bitcoin SV (BSV) emerged from Bitcoin Cash, with an even larger block size of 4 GB, focused on scalability for enterprise use.

Block Size and Scalability:

Bitcoin has a 1 MB block size, processing about 7 transactions per second (TPS).
Bitcoin Cash can process 60-200 TPS due to its larger block size.
Bitcoin SV supports thousands of TPS with its massive block size, which is aimed at handling large transaction volumes.

Transaction Speed and Costs:

Bitcoin has slower transactions and higher fees, especially during network congestion.
Bitcoin Cash is offering faster transactions with lower fees, making it suitable for smaller payments.
Bitcoin SV minimizes fees to fractions of a cent and offers faster speeds, which is ideal for microtransactions and enterprise solutions.

Use Cases and Adoption:

Bitcoin is seen as a store of value, akin to digital gold.
Bitcoin Cash’s main goal is to be a peer-to-peer electronic cash system for daily payments.
Bitcoin SV targets large-scale enterprise applications, including decentralized apps and micropayments.

Security and Decentralization:

Bitcoin is known as the most secure and decentralized cryptocurrency, and it has a large mining network.
Bitcoin Cash is secure but less decentralized than Bitcoin.
Bitcoin SV faces concerns about centralization due to its large block size, though it aims for strong security.

Market Performance and Controversy:

Bitcoin is the most valuable and widely adopted.
Bitcoin Cash has struggled to gain widespread adoption.
Bitcoin SV is controversial, largely due to leadership, but it focuses on enterprise adoption.

Final Comparison:

Bitcoin is best for long-term storage of value.
Bitcoin Cash is focused on fast, low-cost transactions.
Bitcoin SV prioritizes scalability and enterprise applications.

Advantages of Bitcoin SV

Scalable Transactions: Bitcoin SV’s large block size means it can tolerate more transactions than Bitcoin and Bitcoin Cash, making it a viable option for global payment systems.
Lower Costs: The network’s scalability translates into lower transaction fees, which is particularly important for businesses handling micro-payments.
Business-Friendly: Bitcoin SV’s commitment to stability and scalability has made it an ideal choice for businesses looking to adopt blockchain technology.

How to Buy and Store Bitcoin SV?

Bitcoin SV can be purchased on major cryptocurrency exchanges like Binance, Huobi, and Bitfinex. After purchase, you can store your Bitcoin SV in hardware wallets like Ledger or Trezor or use software wallets that support the BSV blockchain, such as Electrum SV or HandCash.

Is Bitcoin SV Secure?

Bitcoin SV uses the same proof-of-work consensus mechanism as Bitcoin, which has proven to be secure over time. However, like any cryptocurrency, its security depends on the network’s decentralization and hashrate. The larger the hashrate, the more secure the network becomes against potential 51% attacks.

Does Bitcoin SV Have a Future?

Bitcoin SV’s future largely depends on its ability to gain adoption and demonstrate its scalability advantages. Its focus on enterprise applications and large-scale transactions could give it a niche in the blockchain world. However, its success will also depend on overcoming competition from Bitcoin and Bitcoin Cash, as well as proving itself in real-world use cases.

What is the Difference Between Bitcoin Core and Bitcoin SV?

The primary difference lies in their block sizes and underlying philosophy. Bitcoin (referred to as Bitcoin Core by BSV supporters) focuses on decentralization and security, with its 1 MB block size. Bitcoin SV, in contrast, prioritizes scalability and transaction speed by allowing much larger blocks. This makes Bitcoin SV more suited for large-scale enterprise use, while Bitcoin Core is often viewed as a more secure store of value.

How Long Does a Bitcoin SV Transaction Take?

A typical Bitcoin SV transaction takes about 10 minutes to confirm, similar to Bitcoin, as they both rely on the same PoW consensus mechanism. However, because of its larger block size, Bitcoin SV can endure a higher volume of transactions, potentially leading to faster overall processing.

Is Bitcoin SV (BSV) a Blockchain?

Yes, Bitcoin SV is a blockchain. As it mentioned, it is a fork of the Bitcoin Cash blockchain, which itself is a fork of the original Bitcoin blockchain. Bitcoin SV operates on a decentralized ledger that records transactions in blocks, and like other blockchains, it ensures data integrity and security via cryptographic means.

Conclusion

Bitcoin SV (BSV) positions itself as a scalable, enterprise-friendly blockchain that strives to stay true to the original vision of Bitcoin. Its large block sizes and low transaction fees make it appealing for businesses and developers looking for a reliable platform to build on. While it faces stiff competition from Bitcoin and Bitcoin Cash, Bitcoin SV’s focus on practical applications and scalability gives it a distinct identity in the cryptocurrency space.

If you’re looking to explore the world of cryptocurrencies or build blockchain-based solutions, consider visiting Argoox, a global leader in AI trading bots, offering state-of-the-art tools and services for navigating the financial markets efficiently.

Coin Information:

Website:
Bitcoinsv.io