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How Bitcoin SV restored the broken Bitcoin protocol

Have you recently come across Bitcoin SV (also known as BSV, or the BSV blockchain) and you’re wondering how it relates to Bitcoin? This blog is for you.

Bitcoin SV’s origins

Bit as data and coin as money infographic

The Bitcoin SV blockchain embodies Bitcoin’s ability to fuse data and money. It is right there in the word: Bit and Coin.

Where many people think of Bitcoin solely as a digital asset, Bitcoin SV implements Bitcoin as a data protocol. It was released to the world with a rule set to allow the communication of data that has monetary value.

Just like the Internet protocol, the original Bitcoin protocol was designed to function as the sole rule set for all applications to run on. But over the years, the protocol was changed and Bitcoin’s capabilities were reduced.

Bitcoin SV restored most of the original Bitcoin protocol, and as a result, it has re-enabled all of this data functionality: it lets you write data to the chain, read data, allow people to own their data and monetise it with the BSV token and even do computation.

With BSV, you can send payments, transmit and access data, create smart contracts, tokenise assets, managed devices and do Big Data and computation.

And the key to unleashing all of this is scaling. The BTC network has not raised its throughput capacity and can only process seven transactions a second. This is nowhere near the capacity of Visa’s network system. 

BSV does not cap the network, but lets it grow unbounded – supporting as big a transaction capacity as can be handled by market forces.

This means transaction fees do not have the transactional limitations of other networks. This expense precludes small, casual transactions, which are important for a micropayments world.

BSV is about big scale. By the end of 2022, the network will likely be at 50,000 transactions per second, exceeding even MasterCard’s average throughput capacity. 

In the future, we are designing enterprise-scale software to go bigger. We call it Teranode – a future of terabyte – 1 million MB – sized blocks that can do millions of transactions per second and billions of transactions per block. 

The scale is not for the sake of our daily payments, but for applications such as the Singapore transaction network that can be created out of transportation data and monetise the value of that data. This is possible because on BSV, it is very cheap to transact. 

The median cost to send a BSV transaction is $0.00005, which means you can send one or two US cents to pay for access, for example, to consumer data. 

Above, you see the types of micropayment transactions that are already emerging on the BSV blockchain. This is how many ecosystems are already seeing the power of being able to send small amounts of money at high velocity in huge volumes.

We are seeing this adoption of micropayments with Australian company, Predict Ecology, an environmental consulting firm using sensors placed on trees in a city to track carbon dioxide emissions. They then tokenise those into carbon credits at a mass scale for every tree in a city. 

By 2024 there will be 83 billion IoT endpoints, meaning someone has to manage all that data and then provide ways to optimise and monetise it. 

BSV: one world, one chain

BSV believes that blockchain holds the key to better data for a better, more honest, more connected world. We believe in a world where there will be only one ultimate public blockchain, just like we operate on a single public Internet.  

It is a vision for one world that is more connected. One data network that tears down walls and builds bridges, one Bitcoin that can unite the corners of our globe. It is a vision for one system that helps us reach out to people peer-to-peer, connecting across a single universe of constant digital interactions. 

Bitcoin was introduced to the world as an electronic cash system to reinvent Internet payments by removing intermediaries and using a distributed ledger of transactions organised into blocks connected across time. 

But those blocks can contain more than just payments. They can contain the most valuable commodity of our digital world – data. 

And therein lies Bitcoin’s bigger vision: the fusion of data and money to connect everything, a digital currency without geographic boundaries. 

One data protocol to power business applications. 

One universal source of truth to break down data silos and open data transparency. 

One ledger that can track products, assets, our rights and the very sustainability of our planet. 

One system that can make our communities smarter, healthier and better.

But it all starts with data. And if data is managed across the world in a way that is more transparent, more connected and more powerful, you can connect everything and everyone, wherever in the world you are.

We believe the future can be brighter and better with the Bitcoin SV blockchain, because better data makes a better world.

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