BitcoinSV in 2020: a recap
Here at Code Poets we’re lucky enough to be involved in the blockchain industry. Our expert developers work on several projects, including highly respected organizations such as Ethereum Foundation, as well as startups, eg. Centi. That’s why we keep close tabs on everything that’s going on in this corner of the IT world, including what’s happening with BitcoinSV. If you feel like you’re falling a little behind, enjoy this overview.
But wait, what is BitcoinSV?
In short: BitcoinSV (SV — Satoshi Vision) is a cryptocurrency forked off the original Bitcoin chain. It came to be as a result of the split of the Bitcoin Cash network, which happened late in 2018. BitcoinSV is developed by the nChain company founded by Craig Wright — a controversial persona in the cryptoworld, who claims to be the (pseudo)anonymous Bitcoin creator — Satoshi Nakamoto.
The aforementioned split (usually called “a fork”) is a pretty common occurrence in the world of cryptocurrencies. Basically, whenever someone has a better idea for the solution, he can make use of the open software and… split it (fork it). And that’s exactly what’s happened to Bitcoin Cash (BCH), which also is a fork of the original Bitcoin (BTC).
What was the reason for changing something that was working fine as it was? The biggest obstacle blockchains face today: scalability. Every second Bitcoin can service a maximum of 7 transactions. To put that in perspective, Visa has a potential to process… 24 000 transactions per second. The easiest way to solve this problem is to increase the size of the block. It's quite a controversial solution since it leads to faster blockchain size increase over time. Changing the size of the block is a protocol tweak, therefore a fork follows. That’s exactly why and how Bitcoin Cash, and later BSV were created.
Why should you pay attention to BitcoinSV?
One of the reasons to keep close tabs on BitcoinSV is the distributed nature of blockchain technology, which powers it up. BitcoinSV provides you with the kind of privacy you long gave up with the first credit card you’ve ordered. It makes your transactions known only to you and the person you’re making an exchange with. Believe it or not, it’s important not only for criminals, but for a lot of everyday people like you and me. And if you haven’t given it much thought before, the 2020 Covid-19 pandemic and its citizen-tracking ideas and conversations surely made you aware of the importance of privacy.
BitcoinSV is also the fastest developing global adoption of cryptocurrency that allows you to pay for anything at all, including your morning coffee. If you were to pay for it using regular Bitcoin, the transaction costs would be greater than the largest cup’s price. To put it in other words, BitcoinSV takes Bitcoin back to its original cash function (just as it was envisioned in the famous white paper).
What also makes BitcoinSV interesting is the direction in which it is going. Specialists who work on it are doing their best to make its future development more stable. Classic Bitcoin development is rather static, because to make any real change to how the protocol works you need to fork it. Each fork has the potential to become contentious and split the community, which is why it's often considered to be the last resort. While Bitcoin Cash attempts to improve that by changing the base protocol layer, BitcoinSV encourages developers to work on layer 2 solutions, which doesn’t involve tweaking the core blockchain protocol. More so, many controversial changes (eg. the difficulty adjustment algorithm or re-enabling of additional opcodes) have been reverted to take BitcoinSV closer to the vision of the original whitepaper.
Our blockchain team — hard at work.
Our experience with BitcoinSV
We’re excited to be able to work with BitcoinSV on a daily basis through our cooperation with Centi — a Swiss startup. Our goal is to create a solution that allows you to pay using BitcoinSV on a regular payment terminal. Throughout this project we’ve been able to leverage the constantly evolving ecosystem of BitcoinSV libraries and applications (often getting direct attention from their developers), which has turned it into a very enlightening experience for everyone who’s working on it.
What’s great about Centi’s concept is how safe it is for the end-user. There’s no place for data breaches, because you always authorize each transaction and no identity details can be traced directly back to the purchase. The exchange rates are dynamically updated at absolutely no mark-up for the customer and the exchange takes place in real time, which is quite unusual. It’s also a completely hygienic (contactless) solution, since there’s no need for entering the PIN code.
The solution is meant to be effortless in use, on both ends of the transaction — even if its participants don’t know much about the way cryptocurrencies work. An electronic cash payment has to be completely hassle free, as such is its inherent nature. This assumed simplicity poses a great and fun challenge for our developers, who have been working with Centi for a few months now.
Hopefully, in a short time the solution will be ready for everyday people like you and me to use at our favourite coffee shops. In the meantime, if you'd like to discuss your project, idea or doubts (over digital coffee or any other drink of your choice) feel free to reach out to Adrian, our CEO.