Bitcoin was created to transform the global monetary system and to enable anyone to have more control over their money. This innovative technology has motivated the development of many new cryptocurrencies since it was launched.
However, many of the new cryptocurrencies are developed to fix the general limitations of Bitcoin protocol.
One of the cryptocurrencies that attempts to improve Bitcoin is Bitcoin SV. Bitcoin SV is an advanced continuation of the original Bitcoin protocol that offers increased transaction speeds and scalability.
In this article, you will learn about Bitcoin SV, how it works and the various use cases of its BSV coin.
What is Bitcoin SV (BSV)?
Bitcoin SV (BSV) stands for Bitcoin Satoshi Vision. It was launched in 2018 after it went through a hard fork (total split from an existing blockchain) from the Bitcoin Cash (BCH) blockchain. It aims to follow through on the original vision of the Bitcoin protocol as described in Satoshi Nakamoto’s whitepaper.
BSV also aims to offer an improved and scalable peer-to-peer data network that can support enterprise-level blockchain applications. In order to achieve these core goals, it has removed artificial block size limits and re-enabled other technical capabilities that had been disabled by the protocol developers of the BTC blockchain.
These improved functionalities enable the BSV network to process tens of thousands of transactions per second while retaining extremely low transaction fees for micropayments. It has also allowed it to offer advanced capabilities such as tokens creation, smart contracts, and several other features.
Bitcoin SV processes an average of 300 transactions per second and a peak capacity of 2,800 transactions per second The team also claims its Gigabit Testnetwork (GBTN) can process up to 5,500 transactions per second due to its unlimited block size.
Bitcoin SV Use Case: Collateral for Lending Loans on DrawBridge
DrawBridge, a Chicago-based lending company, allows its customers to secure loans with BSV coins. In 2018, the company lent a large amount of money that was secured or hedged against risks by BSV to another entity.
The main benefit of DrawBridge’s decision to use BSV is that the borrower can keep their BSV coin but still generate enough returns to pay down the cost of borrowing. The borrower is free to make use of the revenue for its own needs while retaining ownership, and potential price increase, of their BSV coin.
This is a significant achievement for the BSV ecosystem for many reasons. Firstly, it indicates that financial trading companies are willing to make use of BSV coins for options trades. Another reason is that as more people continue to use BSV in derivatives trading, finance professionals will develop more valuable products that will unleash the potential of BSV coin.
Bitcoin SV Use Case: Reward to Users on Cityonchain
Cityonchain is an on-chain city built on Bitcoin SV that uses BSV for interactions on its virtual platform. Similar to Craigslist which publishes local classified ads, Cityonchain allows users to publicize jobs ads, merchant ads, trading of goods, and even online dating.
Users can claim the ownership of a city they desire and manage that city; while other users can be visitors to a city. City owners improve activities on the platform by offering financial incentives, often given in the form of BSV coins.
City owners can also earn BSV from their activities like advertising in the city and from the activity of visitors to their city. For instance, for chatroom activity by visitors, the city owner can earn $0.01 worth of BSV per visitor comment. On the other hand, city visitors can earn BSV by publishing high-quality information that gets enough likes.
With these incentives, Cityonchain aims to create several happy and BSV-earning “Chaintizens.” Cityonchain currently has more than 9,000 cities worldwide.
Bitcoin SV Use Case: Playing Games on Peergames
BSV coins can be used to place bets on Peergame. Peergame is an online casino built on the BSV blockchain that offers various casino games that can be played with BSV coins. The games in the casino allow anyone to experience true fair and on-chain gaming.
To get started, a user needs to connect their Money Button wallet or HandCash wallet to use BSV as their bets, and expect to receive their earnings directly in their wallet. Apart from playing games, Peergame offers users the chance to join promotions and win BSV rewards.
Bitcoin SV Use Case: Incentive for Creating Content on Twetch
Twetch is a microblogging platform similar to Twitter that runs on the BSV blockchain. There are several f fake accounts, online trolls and bots that exist on major social media platforms. Twetch seeks to fix this problem by compelling users to pay small amounts of BSV to post content.
In exchange for interacting with the platform, users can earn some BSV every time someone else likes or comments on their posts. Twetch rewards users who share the highest quality content that attracts users interaction.
This is in contrast to what exists in major social media sites today where only the social media platforms make money through advertising revenue from users’ content and interactions. Twetch intends to expand its functionality to develop more Internet applications that will create more ways for users to earn and use BSV coin.
What Makes Bitcoin SV (BSV) Unique?
Bitcoin SV is different from other versions of Bitcoin due to how it uniquely focuses on following the original Bitcoin protocol and realizing the vision for the Bitcoin network.
Unlike BTC, which is mostly used as an investment or store of value asset, BSV aims to provide a scalable and efficient blockchain platform that processes fast transactions for distributed data applications, enterprises and government users.
Due to its unlimited block size, BSV can scale to meet the demands of any application and payment network without relying on second-layer solutions. In 2021, the BSV network mined the world’s first gigabyte (1000+ megabytes) level blocks – which is 1000 times more than the 1MB block size of the BTC network.
The block capacity of the Bitcoin SV network is expected to grow more to support more transaction volume on the network.
BSV also offers an easy to use platform for blockchain application developers, who migrated from other networks after experiencing scaling issues. BSV is capable of supporting applications with a large user base. Hence, blockchain developers can be assured that transaction fees will remain low as transactions are processed quickly.