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Bitcoin SV (BSV) - what is it and why is it needed in simple words?

Bitcoin SV (BSV) - what is it and why is it needed in simple words?

 

The crypto currency Bitcoin SW is a hardfork Bitcoin Cash, which appeared last year, namely November 15, 2018. The main task pursued by the coin is to maximize the preservation of the essence of classic Bitcoin. Thus, in reasoning what is Bitcoin SV, which is also called "BSV", it is necessary to emphasize that it is fully focused on the vision of the founder of the crypt currency Satoshi Nakamoto, presented in White Paper Bitcoin.

 

What is Bitcoin SV

In simple words, bsv coin is an ordinary BCH fork with no innovations, destinations and directions. The main goal here is to follow the slogan: "To preserve the essence of Bitcoin, only to provide a large scale coin". Specialists note that SV should be deciphered as Satoshi Vision, which means "Satoshi Vision".

The developers of crypto-currency remain committed to the ideas of Bitcoin Cash, that is SV. The following criteria are of priority - maintaining low transaction fees, ensuring a high level of security, creating favorable conditions for miners and investors, and scaling the project.

 

More than one developer worked on the presented project - it was nChain and CoinGeek Mining team. Fruitful work resulted in obtaining an open software license for Bitcoin SV code from the University of Massachusetts.

 

History of Bitcoin SV

As it has already become clear, the autumn of 2018 was a critical period for the developers of Bitcoin Cash crypt currency. It was then they were divided into two groups, which pursued completely different goals. There was no compromise. This was the reason for hardfork and division of Bitcoin Cash into two groups, BCH and BSV, respectively.

 

The first group, i.e. BCH ABC, was headed by Roger Vera. He pursued the goal of qualitatively developing the project, which was the main thing for him. The development and planned changes concerned dApp, namely decentralized applications. The functionality that would allow users not to use cryptocurrency exchange services, but to perform all the necessary transactions between the blocks was not left aside.

 

The second group, namely Bitcoin SV, was controlled by Craig Wright. The appearance of this hardfork occurred at block number 556767. The leader of this group is focused on improving indicators of network size, speed of transactions, expansion of the block (up to 128Mb).

 It is noteworthy that the second group used BCH as a basis for its fork, but the consensus algorithm was changed - Proof-of-work became new. Such innovations led to the reorganization of the network on the block number 557301, but this did not adversely affect the PoW algorithm.

Bitcoin SV team members

The project was created by a special team, which includes real professionals:

 

  • developers, whose total experience in this field is 95 years;

  • specialists who ensure a high level of quality;

  • project managers of nChain.

Among the leading positions are Technical Director Steve Shaders, who is responsible for forming a common vision of the project, working with partners and sponsors. Entrepreneur Craig Wright and multi-billionaire Kelvin Air provide interest and support to the project. Thus, Craig often makes scandals with the press, commenting quite sharply on his competitors.

 

Distinctive features of Bitcoin SV

The main features that characterize BSV are presented below:

 

  • If we look at the fork from a technical point of view, it acts as an old BCH client, which was applied directly before hardfork. Interestingly, the branching happened precisely because of the reluctance of BSV supporters to introduce new updates. At the same time, there were no alternatives from them.

  • The price of BitcoinCashSV is in an unstable position. For example, looking at the BCHABC rate, we can note its quite acceptable stability in value, although it is on the decline. But the price decrease in the second case is gradual, excluding sharp drops and ups, as it scares away investors and users a lot. The same cannot be said about the BCHSV value position, as it is somewhat unpredictable. Users have already had the opportunity to follow its sharp rise and the same sharp fall. Once, the BSV rate jumped from 38 dollars to 133 dollars. To date, the situation has not changed.

  • Studying the statistics of BSV rate, we can observe its inverse correlation with the rate of the original bitcoin. Experts have repeatedly noticed such a fact. What does it mean? If the BTC price decreases, it means that the BSV price increases, and vice versa. It's a little strange, but it happens to be.

  • It is quite likely that a few years later BSV will undergo major changes, but today they are not observed. However, there is some innovation - the change of the acronym from BCHSV (as it used to be called the cryptographic currency) to a shorter BSV. So far, however, users have been using both options.

Difference between Bitcoin SV and Bitcoin (BTC)

Studying the question of the difference between the new Bitcoin fork and the original system, it is worth noting several important points. For example, in the original blockchain was severely hampered by problems related to scalability and the reason for this was the restriction of the size of the blocks to 1 Mb. When the number of transactions increased, there was an increase in waiting time for their processing. Thus, there was a situation when the speed of block formation was several times higher than the speed of their direct extraction. In order to somehow solve this problem, the BitcoinCash fork was created. Here the block size was larger, namely 8 Mb, and over time it increased to 32 Mb.

 

According to the data presented, the block size in Bitcoin SV increases from 32 Mb to 128 Mb, and a year later this figure is planned to be increased to 2 Gb.

This was followed by the official conclusion of partnership with the project, which is focused on cooperation with corporate clients of Bitcoin Cash (Teranode) software for complete node. This was done to provide the system with high bandwidth, namely 6.5 million transactions per second and support for blocks with the size of more than 1 Tb. The planned actions should be implemented in the next two - three years.

 

According to the results of the test for Bitcoin SV, the ability of the system to work with the increased size of blocks became evident and its speed was reached the mark of 1500TPS. However, today there is no such high regular load on the network, so there is no need for high bandwidth for it. As you know, the highest value in the network was fixed at 3.36 TPS.

 

It is important that increasing the block size may lead to a worsening of the situation. Negative factors include slow distribution of blocks through the network, which in turn will cause an increase in the number of ignored blocks. The innovation will also provoke the growth of capacity for processing large blocks, which will cause an increase in centralization and will not have the best effect on scalability.

 

Bitcoin SV is a peer-to-peer payment system that provides for irreversible electronic transactions between two transaction participants, excluding all mediation options. The client program for this payment system is its basic component. All client programs, which are simultaneously run on different software, connect to each other and form a peer-to-peer network. Each node of such network is equal and self-sufficient.

 

According to the information recorded in the Bitcoin SV protocol, the use of Level 2 scaling values (for example, Plasma) is prohibited. In addition, the scripts OP_INVERT, OP_MUL, OP_LSHIFT, OP_RSHIFT are returned, the limitation of 201 opcodes for a separate script is excluded.  In other words, here you can observe the return to the original Bitcoin block.

 

From the innovation also need to pay attention to the function of protection against duplication of operations, which will be included in the network Bitcoin SW. Due to this, users will be able to perform operations in chains of BSN or BSV, without worrying about the probability of double payment. Once the ecosystem shows its readiness, this change will be implemented.

 

The function of transactions without special confirmations will also take place in the Bitcoin SW blockchain. It will allow users to transfer electronic funds instantly. Such a change is of a dual nature, because at its advantage it makes the system more open and vulnerable to double spending.

How Bitcoin SV works

As you know, Bitcoin SV is the fork of the original Bitcoin. This means that it is characterized by a similar working principle. Blockchain is a register, which includes a sequence of blocks. For each block there is an original name that contains the necessary information about the previous block and the key to the next one.

The principle of chain creation is presented in the following way:

 

  • Execution of transactions is reflected in all nodes.

  • Each node copies the executed transactions to the block.

  • Each node searches for solutions to the cryptographic task of the corresponding block.

  • If the right solution is found, the block is transferred to all nodes.

  • A block is accepted by nodes on condition that all operations in it are valid and not executed.

  • Nodes accept the block, and then work on creation of a new block in a chain begins. At that, the hash of the block accepted earlier is used as the previous one.

  • The longest hash in a chain is usually accepted as correct by nodes, so they continue to extend it further. It happens that two nodes transmit different variants of the next block simultaneously. Here, you start to work first with the node that was received first, but the second one is saved for use if you find that it was longer. Thus, the connection will be broken when you find the next Pow solution, one chain will become longer and the nodes from the previous chain will be moved to the used chain.

 

Advantages and disadvantages of Bitcoin SV

The main advantages of Bitcoin SV project are the following factors:

 

Not a bad variant of earnings for miners. Nowadays, when the cost of Bitcoin decreases, the majority of miners are in search of all possible ways of earning by means of the equipment they possess. Thus, ASIC devices are quite acceptable for BSV mining. However, this option is suitable for use as an alternative.

Nowadays BSV is in the TOP-10 cryptocurrencies, firmly occupying the 8th place in the rating. This is due to the high cost of Bitcoin SV and its capitalization, which is combined with the high liquidity of the coin. This is what ensures great interest of most traders, which, accordingly, has a positive impact on the growth dynamics of the cryptovolta.

If the organizers of the BSV will translate into reality, it will cause an increase in the coin value. Such a result will provide greater profit to the holders of this electronic currency.

By the way, the team of developers and organizers of the BSV offers the following changes:

 

  • introduction of a new block size (128 Mb);

  • elimination of current shortcomings by returning to the Bitcoin Cash blockcheck, which was formed immediately as a result of the original bitcoin separation;

  • use of cryptographic currency only as a means of payment, excluding any smart contracts, applications, etc.

And while the changes planned by the nChain team are quite effective and attractive, there are a number of disadvantages to BSV as well:

 

  • No innovation is envisaged. Of course, BSV "copies" the original bitcoin, so it is completely unable to be in line with its fellow man.

  • High competition. BSV already has two serious competitors, and they are known to most users - it is the main Bitcoin blockchain and the network that was formed together with BSV, that is BCH ABC. Some BSV indicators are already significantly behind their competitors.

  • Centralization of BSV. Due to the large hash rate, the network is controlled by several companies. In other words, these companies directly affect the cost of bitcoins, as well as its further direction in development. Of course, many users have not appreciated this approach.

  • Uncertainty in relation to the project founders. After the survey it turned out that the majority of representatives of the society have a negative attitude towards the founders of Bitcoin Cash hardfork. Thus, K.Wright is known as a cheater who can only make loud statements to excite the public, and K.Eyre is a businessman who wants to profit in this way.

  • The BSV rate volatility is high. According to the statistics for the last month, the BSV rate was always in a tense moving state. Lack of any stability certainly scares users, investors and miners.

Of course, it is too early to consider options for investing in Bitcoin SV encryption currency, as there are too high rates of uncertainty about the future of this project on the part of users. Today, Witcoin SV is a project where you can earn on short-term terms, as the cost of the coin is experiencing a constant leap. However, this is a negative factor when considering it as a long-term investment.

At the same time, experts note that the cryptocurrency has all chances to change this situation. Now investors are closely watching how the project develops to be in the center of events when there is an opportunity for profitable investment.

 

Is it possible to mount Bitcoin SV?

Mining of cryptocurrency is possible on any ASIC-equipment that can support SHA256 algorithm. So, Craig Wright founded a mining pool called SVpool. There are no transaction fees, and the fees are paid every day. SVpool servers are located in China and Europe.

 

Is the mining of Bitcoin SV profitable?

It should be noted that when creating Bitcoin SV cryptographic software, Craig Wright emphasized the positive and disposable attitude to the miners. In other words, BSV should have allowed the miners to make a decent profit from its direct production, namely many times more than it was before with Bitcoin Cash. However, today users have strong doubts about profitability and efficiency of work with this cryptocurrency.

 

It should be reminded that the founders of BSV at the very beginning were confident in the support of miners. In their opinion, it should be so strong and large-scale that it would play a decisive role in the disappearance of the main competitor of this project - Bitcoin ABC. According to the plans, the miners had to choose BSV, providing Bitcoin ABC with an insufficient hash rate. However, in fact, the situation has changed radically.

 

Thus, since the day of creation of the two cryptocurrencies as a result of the scandalous fork, the networks managed to accumulate approximately equal hash rate. However, one cannot ignore the changes between them, which were formed in the mining economy.

 

According to research, a clearer picture of the profitability of the BSV and BCH mining in relation to the original Bitcoin has become visible. The following factors were taken into account:

 

  • current coin prices;

  • level of mining complexity;

  • remuneration for the block found.

The results showed that BSV crypt-currency mining allows earning 63% less electronic means than the original Bitcoin mining. At the same time, cooperation with BCH brings 4.1% more profit than the main cryptocurrency. This situation allows us to conclude that the companies that make BSV hashretstrait work at their own loss. It is noteworthy, but before the fort such situations did not occur.

 

It is rather ironic: mining with BSV hashrait miners, which declared itself to be a friendly coin to the miners, is by times less profitable than mining with BCH. By the way, the latter have also made statements that their network will serve as a profitable basis for future investments as an alternative to the classic Bitcoin.

 

It should be said that Bitcoin CB has some difficulties with centralization. The largest pool of cryptovolta production is BTC.com. Today it is 16,5% of Bitcoin hash rate. The control in this case is carried out by Bitmain. In total, they extract about the third often given cryptocurrency. As for BSV, its main part is extracted by SV Pool and Coin Geek at 20.8% and 36% respectively. These pools are interconnected with the creator of the BSV coin, that is, C. Wright.

 

It is also worth paying attention to the size of blocks. Thus, both networks formed as a result of the fork of Bitcoin Cash, have promised to increase them. However, in practice, the promises have dissolved in the air. For example, the block size of the original Bitcoin is now 4 Mb. The creators of BCH were able to generate a block of 32 Mb, which was a record, but routinely in the network work with blocks whose size is 50 kb. Also, BSV at one time promised to increase the blocks to a few terabytes, but in fact, the blockman works with blocks whose size is 13 kb.

 

This picture explains the lack of trust in the "newcomers" in the world of cryptocurrencies from users and investors. However, in the near future everything may well change.

How to buy or sell Bitcoin SV?

Bitcoin SV cryptovolta is acceptable in several ways, the main of which are the following:

 

  • Mining via ASIC devices;

  • GPU minting of the most high value coin and its instant sale through exchanges that provide for exchange for BSV;

  • buying on exchanges;

  • Participating in the development of a project for which a fee is due.

By the way, the crypt currency has been accepted by the largest exchanges that have previously cooperated with Bitcoin Cash. The most common trading floors on which you can buy Bitcoin SW are Poloniex, Upbit, Gate.io, Binance.

 

Bitcoin SV to dollar rate

As of 03.08.2019 Bitcoin SV to dollar rate is 0.0066 BSV, that is, 1 BSV is equal to 151.44 USD. There is a picture of ups and downs in coin value, which alerts investors and users of the network.

 

Bitcoin SV to Euro rate

Of course, the rate of Bitcoin SW depends on how the rate of a particular currency, in this case - the euro. Thus, as of 03.08.2019, the rate of crypt currency against the euro is 0.0074 BSV, that is, 1 BSV is equal to 136.04 EUR. The situation, as in other cases, is unstable.

How to safely earn Bitcoin SV with hardware wallets?

Many people already know that this fork is characterized by an increased risk of using a transaction rerun attack. Thus, when one coin is sent, there is a danger that a similar transaction is formed in another branch of the system.

 

This means that the coins will be lost. How it happens:

 

  • sending electronic funds to a service, exchange or exchanger that does not support this fork;

  • transferring electronic money to a third party;

  • buying through the Internet.

Such operations can be performed by absolutely any user, an intruder. However, nodes are often transferred automatically. In such a situation a quite logical question arises: "What to do to avoid this system defect? There are several options for additional protection of your own funds, the main of which are presented below.

 

Mixing of coins.

In this case you need to find a user who has already separated the own coins of two blockchecks, to agree with him to send a small amount of money to the public address of interest. This operation cannot be duplicated because it requires a completely different signature.

 

Here you need to understand some features. The following combinations are allowed: BTC-ABC and BTC-ABC or BTC-SV and BTC-SV. Thus, the same and necessary result is formed, namely the coins will be separated and the double playback will be reduced to "zero". If the coins are stored on different wallets, such manipulations should be done with each address. Alternatively, you can combine all the coins on one purse, and then mix them. This method has an important disadvantage, namely the high probability of undermining the confidentiality due to the disclosure of information about the assets and transactions for the owner of the separated coins.

 

Using Locktime.

Locktime is a script command. It sets the time of electronic money spending. In simple words, you can determine the height of the block, as well as the date when the operation can be entered into the network. This method requires additional knowledge that can be obtained on the Internet.

 

Using Checkdatasig.

If the second method involves the use of Locktime command, because the difference in height of blocks of both blocks required it, then here will be the actual command Checkdatasig. It can be used in the context of those clients that support Bitcoin Cash ABC. If there are any attempts to send a transaction involving this command to Bitcoin Cash SV, they will be immediately rejected. It is noteworthy that the Checkdatasig command was one of the reasons why the creators of Bitcoin Cash split up into two camps.

 

What is Checkdatasig? It is a command that allows users to import and check messages, going beyond the block. According to the developers, this feature will significantly expand the boundaries of the BCH ABC platform in various areas of life. The main advantage of the method of using Checkdatasig is that there is no need to perform the second operation after the first one has been performed.

 

Expert advice for token holders in the case of fork:

 

  • Under no circumstances should you rush into any action. It is important to wait for the situation to be investigated and commented on by the leading experts.

  • It is imperative to wait until the number of tutorials is sufficient. Among all existing ones, it is recommended to choose the ones that are most suitable in one or another case.

  • Any decisions related to the crypt currency after its fork should be dependent on the information that has been collected to date. It is not necessary to "dive" into the whirlpool without waiting for official information about this or that event.

  • The first operations should be performed on small amounts. In case of unsuccessful transaction the loss will be insignificant.

  • By following the above tips, users will be able to protect their own funds more reliably.

Where to store Bitcoin SV

The topic of cryptocurrency token storage was considered by the project organizers. To store Bitcoin SV correctly, you need to listen to the advice of Bitcoin SV representatives. They presented to the public a selection of BSV electronic money storage wallets, which, by the way, did not follow from other cryptographic market teams.

 

Tops the list of the most recommended Centbee wallets (beta), which is presented in beta. It is a priority among other options due to its simple interface and fast operations in the system.

 

In second place is CashPay, which serves only BCH and all its subsequent derivatives.

 

The third place is occupied by Coinomi, which is able to work not only with Bitcoins of CB, but also with other 500 kinds of cryptocurrencies.

 

Guarda electronic wallet is able to handle the most popular cryptocurrencies, is an ideal option for ETN holders.

 

And finally, it closes the rating of recommended Pixel Wallet, but now it is not available for use.

 

How many total Bitcoin SV

The experts told how much Bitcoin SV can exist only - 21 000 000 BSV. The formation of new tokens is carried out by means of mining similar to the original cryptographic currency.

 

Issue of Bitcoin SV

It should be noted at once that the emission of Bitcoin SV is limited. Its limit, as mentioned above, is 21 000 000 BVV. The history of Bitcoin SV shows that Bitcoin Cash holders had the opportunity to exchange their existing coins for B"" tokens at the rate of 1:1.

 

What is provided by Bitcoin SV

Touching upon the topic of Bitcoin SV software, it is worth mentioning the fact that BitcoinCashSV technology platform is currently somewhat losing out and there are several reasons for that. It is inferior to Bitcoin SV not only to its main competitor ABC, but also to the original Bitcoin system. Users also do not complain too much about Craig Wright, who practically repels the public by his own behavior. Thus, the nickname that has been fixed for him in the community of cryptomonet holders speaks for itself - "fake Satoshi.

 

Analysts are still cautious about the BSV project, while continuing to follow its innovations and course trends.

 

As for exchangers and platforms for cryptocurrency trading, the situation is quite different. The trade is extensive. It is noteworthy that some platforms have made statements of support for both projects.

 

Which exchanges trade BSV:

 

  • Coinbase;

  • Bittrex;

  • Binance;

  • Kucoin;

  • OKEX;

  • Huobi and others.

It is worth mentioning most of the producers of electronic wallets, which also added support for both projects. However, there is also an exception - this is Ledger Nano S wallet, the developers of which refused to cooperate with either of the forks. The refusal to support these cryptocurrencies is justified by the absence of a leading link in the emerging dispute. Once the main element is defined, the Ledger Nano S vendors promise to reconsider their decision.

The Future of Bitcoin SV

The future of Bitcoin SV today is a bit shaky, if you take into account all the above (we wrote an article about the future of cryptology in general - here). However, there's no need to exclude good prospects, experts say. If SV group leader Craig Wright fulfills all the promises he made publicly, then improvement of bitcoin SV crypto situation on the market may well happen. It is important that the team leader stops focusing on constant disputes and scandals with his competitor ABC and takes appropriate actions aimed at developing his own project. We should not ignore the fact that the Bitcoin SV project was qualitatively equipped at the moment of its appearance and ascent - this is a listing on most exchanges in automatic mode, a great popularity among users and investors, the TOP-10 on capitalization. Not every project in the world of crypt-currency can boast of this kind, but it seems that Wright perceives it as proper.

 

The project has every opportunity to fully replace the original Bitcoin platform. But due to the behavior and attitude of the team leader, it is impossible to predict the implementation of this in reality. Hardfork happened relatively recently, so it is difficult to judge its further development. Of course, the Bitcoin SV project has both advantages and disadvantages, which experts will tell you about below.

 

The main advantages of the Bitcoin SV project:

 

  • good conditions for the start;

  • attractive conditions for miners;

  • high performance and large scale of the project, grand plans to improve these indicators (performance, scalability).

There are disadvantages as well as advantages of the Bitcoin SV team.

 

The main disadvantages of the Bitcoin SV project:

 

  • high level of competition;

  • high centralization of mining;

  • reputation overshadowed by scandals;

  • technical problems, namely high vulnerability to double spending attacks, as well as reorganization of blocks;

  • doubts on the part of experts about the ability of the project to turn into reality technical solutions that could support such a large size of blocks.

The last point is considered in the context of the fact that Bitcoin Cash had quite a problem with processing of blocks of 32 Mb, and Bitcoin SV and swung at 128 Mb, and later at 1 Tb.

 

In view of all the above, there is no point in placing high hopes on Bitcoin Cash SV project and the fact that it will start developing separately from the market. What does it mean? Such dependency of the cryptovolta ensures proportional behavior of its value in the general market situation.