Updated: Dec 20, 2019
Bitcoin SV (Satoshi Vision) or BSV was the result of a hard fork in Bitcoin Cash (BCH). The other part of the split is Bitcoin ABC (Adjustable Blocksize Cap). A segment of the BCH ecosystem wanted to limit potential smart contract features while increasing transaction speeds. Since the initial forking, BSV has consistently maintained a position in the top 20 crypto coins by market cap. It has also migrated numerous businesses and developers from BCH over to its network.
This guide will focus on what Bitcoin SV was designed for, the team behind it, the way it works, and uses and applications.
What is Bitcoin SV Designed For?
Bitcoin Cash was facing major scalability issues when a team of users decided to increase the block size. However, this was met with rigid resistance from many, as they believed the increase in block size would diminish rewards and valuation.
One of the primary goals of BSV developers was to minimize inflated transaction costs, make it more affordable, and increase the average speed per transaction. For this purpose, they created BSV and increased individual block sizes to 128MB, which is also the key to the success of this new cryptocurrency.
Bitcoin SV is aimed at bringing back the technology and values of the original Bitcoin. It was designed to enhance decentralization, use crypto solemnly as a trade and payment method, and elevate the capacity of the Bitcoin network.
Who Is the Team Behind Bitcoin SV?
nChain’s Chief Scientist, Craig Wright, who also claims to be Satoshi Nakamoto (the pseudonym used by the original creator of Bitcoin) headed the hard fork in 2018. Wright is the major media figure, who battled Roger Ver of Bitcoin Cash in the famous Bitcoin Cash hash war.
BSV was created at the request of CoinGeek, a leading BSV mining enterprise, and other miners. Wright, along with billionaire Calvin Ayre, created a competing software version called Bitcoin SV. Ayre was revealed by Wright, as the ultimate organizer and the financial backer behind the affair.
An interesting fact is that in the beginning, Ayre was a Bitcoin Cash supporter and it was only later that he threw his support behind Bitcoin SV.
How Does Bitcoin SV Work?
Bitcoin SV works on a similar methodology as Bitcoin. It uses Bitcoin protocols to allow trading and online payments, between a buyer and a seller. BSV works on a ledger that records balances and transactions happening in an account.
Principles of cryptography are used to exchange the native currency (BSV), which is defined by the protocol laid down by Bitcoin SV for a transaction from its creation, into validation and final confirmation.
Bitcoin transaction mechanisms are the core of the protocol, where BSV is spent or exchanged from dedicated wallets, like Trezor, Atomic Wallet, Centbee, and BC Bitcoin among many others. All digital transactions made on the framework are verified and checked for duplicity, authenticity, and cash availability. This process is not centralized and all nodes are authorized to participate in it.
This is the prime reason why BSV was hard-forked from Bitcoin Cash –to help move along these validations at a quicker rate.
What are Current and Future Applications of Bitcoin SV?
A growing number of BCH projects and companies have announced support and partnered with BSV. However, BSV remains a top-choice for remitting and accepting payments on a global scale.
Some of the top merchants include:
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The cryptocurrency has also set up various ATMs by partnering with BCB ATM, where you can easily sell and buy Bitcoins with cash.
Bitcoin SV has established itself as a cryptocurrency that is here to stay with its distinct technology. It also has a loyal community and market base that allowed it to gain the #5 spot, by market cap, in August 2019. However, many experts feel that if Bitcoin-derived blockchains continued to fork in the same way BSV was forked, it could end up becoming too fragmented and can lead to loss of clout.
In such a scenario, chains like Bitcoin SV would end up being unsustainable in the volatile market. They also run the risk of collapsing inwards like the Ouroboros. Because Bitcoin SV is relatively new, only time will tell what the future holds for this distinctive vision of peer-to-peer cash.