What Is BSV?

what is bsv?

If the crypto market were a big family, then Bitcoin would undoubtedly be seen by many as its leader and the patriarch. While most prominent coins and tokens on the market are not directly related to the biggest cryptocurrency, it definitely paved the way for their existence — and popularity.

That said, Bitcoin does have its own “children” — the coin has been forked over a hundred times. However, not all of those forks have managed to succeed. Today, we will be talking about one of the biggest and most famous Bitcoin hard forks, Bitcoin SV.

Bitcoin SV (BSV) History

bitcoin fork

Bitcoin SV is essentially a fork of a fork. It was branched from Bitcoin Cash (BCH) in 2018, which, in turn, was forked from the original Bitcoin protocol a year earlier, in 2017.

BSV was split from Bitcoin Cash due to miners having disagreements over how to handle the ever-present scalability issue. The block size was the most crucial deciding factor for the divide: although for Bitcoin Cash, it has already been increased to 32MB from Bitcoin’s original 1MB, some people still thought that wasn’t enough. 

The disagreements over whether the coin’s block size should be increased to 128MB caused the split. The new cryptocurrency was called Bitcoin “Satoshi Vision” in order to represent how it was meant to adhere to Satoshi Nakamoto’s original principles and ideas for BTC.

Who Are the Founders of Bitcoin SV (BSV)?

Bitcoin SV and its node software were developed by blockchain technology company nChain. Their Chief Scientist Craig Wright, who claims to be the real Satoshi Nakamoto — Bitcoin’s creator — is seen by many as the “face” of this project. 

In addition to nChain, which manages the project’s node software and other infrastructure tools, BSV is managed by a Swiss-based non-profit blockchain group known as the Bitcoin Association. It was formed specifically to support the growth and mainstream adoption of the coin, and so it directs all the other groups and individuals working for the project.

Bitcoin SV (BSV) Overview

BitcoinSV

BSV is defined by being the true successor to the original Bitcoin protocol and the ideas laid out by its creator, Satoshi Nakamoto. The main goal of this cryptocurrency is to become a widely accessible peer-to-peer (P2P) digital payment system. Additionally, the BSV network aims to create a platform that can fully support a wide variety of advanced blockchain applications.

Just like the original Bitcoin protocol, Bitcoin SV was designed to have a limited supply of 21 million coins. Additionally, just like BTC, BSV also goes through halvings — predefined periods of time when block rewards for miners get reduced in half. 

Unlike BTC, however, Bitcoin SV has removed block size restrictions and re-enabled various technical capabilities that had been previously removed by the developers of the Bitcoin network, such as Script commands.

These decisions allowed Bitcoin SV to reach an incredibly high transaction throughput of 50,000 transactions per second, which is much, much higher than that of Bitcoin. Not to mention, it also gets accompanied by low transaction costs even for micropayments, as well as advanced functionality, such as smart contracts, tokens, and so on.

How Does Bitcoin SV Work?

Bitcoin SV is a highly advanced blockchain network that is capable of supporting nano transactions, smart contracts, and NFTs. Furthermore, it is highly scalable, secure, and efficient.

Bitcoin SV has an extremely large maximum block size — 4GB. While that is impressive and provides higher transaction fee rewards for miners, it also sacrifices decentralization. The bigger the blocks, the fewer nodes there are to store the copy of the entire transaction ledger. This also decreases the overall security of the blockchain.

Bitcoin SV Protocol Technical Structure

Bitcoin SV’s protocol was designed to be as mainstream and investor-friendly as possible. It has a fixed structure that provides the stability that institutional investors are looking for. It is also highly scalable, making it perfect for daily payments. These two qualities, alongside the coin being incredibly regulation-friendly, make BSV a perfect candidate for mass adoption.

BSV is the native cryptocurrency of the Bitcoin SV blockchain network, which is a hard fork of BCH. It mostly follows the rules and ideas laid out in the original Bitcoin white paper but incorporates some minor changes, like a rather significant increase in block size — from 1MB to 4GB.

Yes, that’s right — Bitcoin SV’s current block size is much larger than the originally planned 128MB thanks to the implementation of a special adjustable unbounded block size system that allows the project’s consensus mechanism to change and determine the block size automatically.

What Makes Bitcoin SV (BSV) Unique?

Although Bitcoin is still widely used as a payment method, it is not the best-suited coin for quick and cheap everyday transactions. BSV, on the other hand, is perfectly suited for it and is actually choosing usability as its main focus. This project is not resting on its laurels, either. It is constantly evolving and is currently testing a throughput of 100,000 transactions per second.

Bitcoin SV’s development tools and platform are also amazingly well-prepared for dealing with any scalability issues — unlike Ethereum, this cryptocurrency was built to scale with user adoption.

Last but not least, Bitcoin SV was designed to incentivize mining with transaction fees rather than block rewards in the long run. That’s done by increasing throughput and block sizes and allowing miners to choose what blocks they want to mine.

How Is the Bitcoin SV Network Secured?

The Bitcoin SV network is secured by a proof-of-work (PoW) consensus algorithm. In order that new blocks can be added to its blockchain, miners have to solve complex mathematical puzzles with the use of their computing power. The network becomes more and more secure with each new block added to the blockchain.

Bitcoin SV Mining

Since Bitcoin SV has a proof-of-work consensus mechanism, it can be mined quite easily. Just like in the case of Bitcoin, miners compete with each other to be the first to solve complex mathematical problems. The winner of each such race gets to be the one who adds a new block to the blockchain and receives a reward for it.

miner

​Bitcoin SV has an average block time of around 10 minutes, and the current block reward is 6.25 BSV. One of the project’s defining characteristics is the ability of miners to choose the size of blocks they want to mine.

Bitcoin SV (BSV) vs Bitcoin Cash (BCH) vs Bitcoin (BTC)

As we have already mentioned, one of the biggest — if not the most defining — differences between these three coins is their block size. Other than that, they have a lot of similarities: a 10 minute block time, the SHA-256 hashing algorithm, adjustable difficulty, and so on. 

Here are some of the other things that set Bitcoin SV apart from BTC and BCH:

  • unparalleled transaction throughput and speed;
  • smart contracts capabilities;
  • support for NextGen NFTs;
  • micropayments, a technology that facilitates the creation of ultra-efficient online payment models.

What Can Bitcoin SV Be Used for?

Bitcoin SV is an advanced blockchain platform that has a high throughput and supports instant yet cheap transactions. As a result, it works perfectly as a peer-to-peer digital payment network.

However, that’s not all that it is good for — Bitcoin SV is quite versatile and has impressive functionality. For example, Bitcoin SV enables NextGen NFTs with mind-blowing on-chain file support of over 1GB and incredibly low fees. Additionally, this project can be used for stable decentralized on-chain data storage and running and creating dApps.

Is Bitcoin SV the Same as Bitcoin?

Although Bitcoin SV is a hard fork of a BTC hard fork, and the two have a lot in common, they are two separate cryptocurrencies. 

Is Bitcoin SV Better Than Bitcoin?

Bitcoin SV has higher transaction throughput, cheaper fees, and a more sustainable long-term growth model than Bitcoin.

Where Can You Buy Bitcoin SV (BSV)?

Being a rather popular coin, BSV is available on many different cryptocurrency exchanges.

Changelly offers all users a quick and easy way to exchange Bitcoin SV for 200+ other cryptocurrencies, or vice versa. Take advantage of fair rates and low transaction fees and get it on our website or in our app.


Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.