Some who believe that the original Bitcoin system is fundamentally broken argue that it is unjustifiable to continue using it structurally. According to these critics, the adoption of SegWit and other modifications to the Bitcoin protocol poses a threat to the security and legitimacy of the original Bitcoin. What is Bitcoin SV? The supporters, Satoshi Nakamoto is only supposed to enhance block sizes in Bitcoin’s initial protocol to improve scalability. Consequently, they conclude that all variations from the primary Bitcoin protocol beyond block length increases are likewise protocol changes. If you want to boost scalability in Bitcoin (SV), you have to raise block size; all other approaches are considered a denial of the core Bitcoin system.
When SegWit was added to the Bitcoin protocol to allow for a new off-chain processing option, it appears that Bitcoin deviated from its initial protocol architecture. In addition, despite its recent stock ticker, Bitcoin Cash was the absolute continuity of the original Bitcoin system because it did not include any net-new technology and only built on existing functions by expanding the block from 1MB to 32MB. Even after a hard split produced Bitcoin SV, Bitcoin Cash continued to make core changes to their protocol. Although it has its unique ticker symbol, Bitcoin SV’s community believes that it is the only actual continuation of Bitcoin’s original blockchain network.
The Technical Structure of the Bitcoin SV Protocol
The Bitcoin SV blockchain’s native currency is BSV. Aside from the massive increase in block size, this cryptocurrency follows the original Bitcoin whitepaper’s early regulations for BTC. After the Bitcoin Cash hard fork on November 15th, two new coins called Bitcoin SV were born.
Scalability enhancements offered by Bitcoin Cash were thought to be insufficient to suit Bitcoin’s ongoing needs.
The desire to return to the Bitcoin protocol’s initial version 0.1 design
In July 2019, the Bitcoin SV protocol received its Quasar Protocol Upgrade, increasing the block size from 128MB to 2GB (opposed to the 1MB block size of the original Bitcoin protocol). The network’s consensus mechanism determines the block size, which is a feature of the protocol by design. Additionally, miners can select the block size they prefer to work with. To encourage miners to continue processing new blocks even after the block reward has expired, the architecture of Bitcoin SV was designed to help handle more payments at once, resulting in higher transaction fees.
For mining genesis block and adding it to the blockchain, miners receive block rewards on several blockchains. Block rewards encourage miners to devote more resources and processing capabilities to mining. Halving is a process in which block rewards are cut by 50% over time. It’s a good idea for miners to choose the size of block they want to mine, as block payouts continue to be halved. Due to larger blocks, miners can earn more in fee income, which helps to counteract the decreasing block rewards.
When it comes to the main net, what is Bitcoin SV has already learnt, now claims to process 2,800 times per second at its maximum transaction rate of 300 times per second. Because of this, the team says that their Gigabit Scheduled for November (GBTN) can handle up to 5,500 times per second. According to TAAL, a blockchain service provider specialising in Bitcoin SV, a 369MB block on the manner of the cryptocurrency had 1.3 million BSV transactions processed in May of the following year. These transaction speeds surpass both BTC and BCH, even if they are still far from Bitcoin SV’s 2GB limit.
Stability for investors and large-scale applications is a primary goal for Bitcoin SV. This protocol is intended to be highly scalable and regulatory-friendly to gain widespread acceptance and eventually worldwide enterprise usage. Despite these admirable objectives, it needs to be seen if the project can be sustained in the long run. One of the advantages of huge blocks is that they are faster. Still, they compromise decentralisation because few full nodes can record the decentralised blockchain history because of the increased memory needs. As a result, while small blocks may take longer to process, they retain the network’s core advantages of decentralisation and security. This means that the more decentralisation you have, the less decentralisation you have.
The Bitcoin SV Controversy (Craig Wright)
For as long as Bitcoin has existed, conjecture and dispute have surrounded its originator. There is no known identity for Satoshi Nakamoto, the anonymous creator of Bitcoin’s whitepaper. Nearly all of the prominent blockchain and crypto personalities who suspect becoming Satoshi Nakamoto have disputed the accusation at various points in their careers.
Some believe that Nakamoto is still an enigma; however, Bitcoin SV founder Craig Wright claims to be the man who created the digital currency. It’s hard to believe his allegations because he hasn’t offered any proof. Wright has been at the centre of many legal battles over these and other Bitcoin-related accusations.