Bitcoin for Beginners: The BSV Protocol
More and more are jumping on the cryptocurrency bandwagon; however, many do not fully understand the technicalities that are crucial in deciding which digital money to put their trust in. This article will give you a Bitcoin for beginners guide to the BSV Protocol—something that is probably the most vital aspect to consider before making an investment.
A Brief Background
There are two main events in Bitcoin history that resulted in the separation of Bitcoin into three factions: Bitcoin Core (BTC), Bitcoin Cash (BCH) and Bitcoin SV (BSV). As this is a Bitcoin for beginners guide, these events will be explained in a simpler fashion so as not to confuse readers with more technical terms.
The original Bitcoin split into BTC and BCH after a clash of opinions regarding staying true to Bitcoin creator Satoshi Nakamoto’s original vision of scalability. BTC decided not to scale and just maintain its data capacity at 1MB and instead store transaction data outside the Bitcoin database, which is a public immutable ledger called a blockchain, while BCH chose to increase the capacity to 32MB and continue recording all transactions on the blockchain.
Not too long after the first divide, BCH, headed by the ABC protocol implementation, decided that it did not want to continue scaling and wanted to make the Bitcoin system anonymous so that it will not leave a trail that is auditable by authorities. Again, this is a deviation to Nakamoto’s vision that did not sit well with some of the BCH developers. These developers then split from BCH and created Bitcoin SV, which stands for Satoshi Vision.
Changes in the Bitcoin Protocol
The Bitcoin Protocol is the foundation of the Bitcoin network. It should be set in stone and not be changed at every developer’s whim. Take for example the construction of a building. The foundation is the most important part because if it is unstable, the building will collapse as more floors are added. The same is true for the Bitcoin network. The entire system will become unstable if the Protocol is being changed continuously, just like building a structure on top of sand.
The two events that led to the separation of Bitcoin introduced code that fundamentally changed the Bitcoin Protocol many times. BTC introduced new code called “SegWit” that allowed them to record transactions off the blockchain, while BCH still continues to add new code to serve their various purposes that are not part of the original Bitcoin vision.
The Bitcoin SV Protocol
Bitcoin SV proponents sought to bring back the original Bitcoin Protocol and make it as close as it can to how Satoshi envisioned it in his white paper. The BSV Protocol is now fixed and as stable as it can get with provisions for unbounded scalability. Less than a year after it was established, Bitcoin SV increased its data capacity from 128MB to 2GB, with a promise of having 2TB in the coming years. Earlier this year, BSV released the Genesis upgrade, which is “a return to everything that made Bitcoin great: simplicity, efficiency and a predictable basis from which healthy economics can be built.”
What does this all mean? By reverting to the original fixed protocol, BSV now has a rock-solid foundation that enables unbounded scalability. The ability to hold an unlimited amount of data on the blockchain and develop innumerable applications on top of the stable BSV Protocol are now unleashed.
This is just like saying that Bitcoin SV has designed a structure built on a foundation that is so solid it is guaranteed to last forever; and because of it, floor after floor after floor can be added on top of each other without the fear of it collapsing. Each floor can house more and more tenants as the structure continues to expand infinitely. With the possibility of never-ending growth, investing in BSV is just like investing in the Internet during its first years of operation. And this is why Bitcoin SV is “the one chain that can lead the world.”
For more information please check out this Bitcoin for beginners guide.
This article has been published in accordance with Socialnomics’ disclosure policy.