“Bitcoin Satoshi Vision” or BSV for short, is a blockchain that was created after a hard work split of Bitcoin Cash. Interestingly the person behind the creation of the BSV Blockchain, Craig Steven Wright, claims he is the man behind the pseudonym Satoshi Nakamoto.
While that fact is up for debate, Wright claims that his blockchain follows the protocols of the original Bitcoin White Paper to the letter. The BSV blockchain is the largest of all Bitcoin forks, exceeding 2.5 terabytes. Apart from that it has the same protocols as the Bitcoin Blockchain. It undergoes the halving event after every four years. It has the same number of tokens, like Bitcoin, which is 21 Million, that miners can mine.
In the earlier years of Bitcoin SV, its block size limit was increased to 128 MB, much larger than Bitcoin’s 1 MB block size limit at the time. However, Bitcoin has undergone several changes over the years which allowed for more transactions to be packed into each block.
The necessity of BSV Blockchain
One of the most important characteristics of a Blockchain is that it should be scalable. This means that for a blockchain to be widely adopted, it should handle the growing number of transactions and data over time.
To expand on this point a little further, a scalable blockchain should be able to process a larger number of transactions per second to handle the increasing demand and ensure that the network remains efficient during timeframes where activity is high. The block size should be made adjustable so that it can accommodate more transactions as needed.
Scalable blockchains should provide economic incentives for network participants, such as miners or validators, to continue supporting the network’s growth. The time required to complete one transaction should also be low.
These were not the defining characteristics of the Bitcoin Blockchain when it was first introduced back in 2008. The original Bitcoin blockchain had a block size of only 1 MB at the time, which was later upgraded to 2MB. Such a small block size would not have been conducive to handling a large number of transactions when the load on the blockchain increased.
The bottleneck created by simultaneous transactions waiting to be processed at the same time would also result in increased transaction fees. The problem wouldn’t be of much concern to those who were willing to pay the higher energy costs to get their transaction processed first, but not everyone could afford this, and those who were willing to wait would see delayed results.
The challenge of scalability prompted the first significant split in August 2017, resulting in the birth of a separate blockchain known as Bitcoin Cash (BCH). Bitcoin Cash adopted a larger block size of 32MB, a departure from Bitcoin’s smaller blocks. Initially, BCH adhered closely to the original Bitcoin protocol.
However, over time, it introduced structural modifications that stirred some controversy within the Bitcoin community. A faction of the community believed that these changes should align more closely with the security and validation principles outlined in the original Bitcoin protocol, leading to a division in views and approaches.
At this point, another fork was generated, which we now know as the BSV blockchain. The BSV blockchain tried to capture the audience by giving them the service of a scalable blockchain. The original block size of the BSV blockchain was 128MB.
With time, the hard cap on block size was removed, and currently, the BSV blockchain is the largest of all Bitcoin forks, exceeding 2.5 Terabytes in size. The other two defining characteristics of the BSV blockchain, according to its website, apart from being scalable, are that it is very stable and very secure.
The BSV blockchain claims that it can handle 300 transactions per second on average, while the peak capacity of 2800 transactions per second has been handled on its mainnet. The team also claims that the Gigabit Testnet of BSV can process up to 50,000 transactions per second. The result of larger block sizes and quick transaction time means that the BSV’s transaction fee is also very low. The last known stat for a BSV transaction fee was $0.000003!
Which exchanges allow BSV trading?
Bitcoin SV is trading on 26 cryptocurrency exchanges across 50 trading pairs. The most popular Bitcoin SV pair is BSV/USDT on KuCoin. Other known exchanges that offer BSV are OKX, Huobi Global, Bitfinex, Bittrex, and Bybit.
Is BSV listed on Binance?
BSV was listed on Binance at one time, however, in 2019, Binance, the world’s largest cryptocurrency exchange, delisted BSV due to a dispute between Craig Wright, who claimed to be Satoshi Nakamoto, and the crypto community. Wright’s aggressive claims and threats led to Binance, Kraken, Shapeshift, and others delisting BSV. BSV filed a lawsuit, alleging conspiracy and substantial losses for BSV holders.
How does the BSV blockchain work?
Similar to many other blockchains, the BSV blockchain operates on the proof-of-work (POW) algorithm. Miners play a vital role in verifying transactions and are rewarded with BSV tokens for their efforts. These block rewards serve as incentives, motivating miners to commit their computational resources to the network.
Additionally, the BSV blockchain follows a halving protocol, similar to Bitcoin’s, where the reward size is slashed by 50% approximately every four years after a specific number of blocks have been mined. This mechanism helps regulate the issuance of new BSV tokens over time.
BSV blockchain native token
Bitcoin SV is the native token of the BSV blockchain. According to CoinMarketcap, the price of BSV at the time of writing this article was $34.44.
The cryptocurrency community is divided on the merits of BSV as it has faced controversies and criticisms, including legal disputes and accusations of centralized control. Bitcoin, on the other hand, remains the most widely recognized and adopted cryptocurrency with a large network effect, high security, and significant institutional interest.
Ultimately, the choice between BSV and Bitcoin comes down to individual preferences, beliefs, and specific use cases. It’s crucial for anyone considering these cryptocurrencies to conduct thorough research and consider the broader cryptocurrency ecosystem before making a decision.
