Chances are that you have heard about bitcoin lots of times. And whenever someone mentions cryptocurrencies, you think Bitcoin. However, in this article, we will focus on the less talked about version of Bitcoin that’s known as Bitcoin SV. It is much different from the regular bitcoin and bitcoin cash. Read on to find out everything you want about this currency.
What is Bitcoin SV?
From a market capitalization perspective, Bitcoin SV ranked as the sixth largest cryptocurrency in April 2020. This digital currency was created by Steve Shadders and Daniel Connoly in 2018. By then, they were both working at nChain. Bitcoin SV is also popularly known as Satoshi’s Vision. Experts classify it as a variation of bitcoin cash that was developed to reinstate the original bitcoin. Craig Wright spearheads this currency, who likens himself to Satoshi Nakamoto.
History of Bitcoin SV
In 2017, a massive debate between cryptocurrency enthusiasts erupted. It revolved around the bitcoin cash fork and bitcoin. Lovers of the Bitcoin SV argued that it was the closest cryptocurrency to Satoshi’s original bitcoin. Soon after, they realized that bitcoin cash was going against its vision and they became divided once again. Bitcoin cash was split into bitcoin cash-team ABC and Bitcoin SV-team nChain. Now that you know about the origin and history of Bitcoin SV, let’s see how it compares against its counterparts.
Bitcoin vs. Bitcoin Cash vs. Bitcoin SV
In Nakamoto Satoshi’s white paper, the writer defined it as electronic cash. However, bitcoin blocks came with limitations that some people didn’t like too much. A Bitcoin block has a 1Mb block size. This means that when there are many transactions, the fee of transacting goes up. The network also becomes slow. Some BTC enthusiasts did not like this at all.
In 2017, a group of bitcoin developers wanted to expand its block size from 1Mb to at least 8Mb. Others disagreed and they split up. One group went ahead to develop what is now known as bitcoin cash, which has an impressive 32 Mb capacity. Those who had a problem with the bitcoin scalability problem also moved to bitcoin cash. So, where does bitcoin SV come in? Bitcoin SV split from bitcoin cash in November 2018.
Bitcoin SV split from bitcoin cash due to scalability. With a 128 Mb block size, the Bitcoin SV network is much faster and its transaction costs are much lower. On July 29th, BSV developers updated and increased its default capacity to 2000Mb. The protocol behind this update was named Quasar. BSV became a thousand times bigger than the original bitcoin.
In February 2020, another massive update was done, allowing infinite transactions on the BSV network. The developers named the protocol behind this move Genesis. The new change undoubtedly set the stage for enterprise use. Developers could now build large scale platforms on top of the BSV blockchain. BSV aims to create a global payment system that can accommodate millions of users at an affordable fee.
Bitcoin creators tend to think that they are building on Satoshi’s vision of the original bitcoin. It uses a similar algorithm as bitcoin, and this is the proof-of-work algorithm. The only difference is that it delivers affordable and superfast transactions that are ideal for the merchants. That said, we can conclude that it is an efficient peer-to-peer electronic cash transaction platform.
Bitcoin SV is a fierce competitor of the original bitcoin. It could have a chance to eventually overtake Bitcoin. However, that remains to be seen as its popularity is still growing. For those who do not like the original bitcoin and bitcoin cash due to scalability, BSV presents the perfect opportunity.
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