What is a difference between bitcoin and bitcoin sv

Bitcoin and Bitcoin SV are two cryptocurrencies that share a common origin, but have diverged significantly over time. We will explain what are the main differences between them and why they matter for investors and users.

The origin of Bitcoin SV

Bitcoin SV (Satoshi’s Vision) is a fork of Bitcoin Cash, which itself is a fork of Bitcoin. A fork is a split in a blockchain network that creates two or more versions of the same cryptocurrency with different rules and features.

Bitcoin Cash was created in 2017 as a result of a disagreement among the Bitcoin community over how to scale the network and increase its capacity to handle more transactions. Some wanted to increase the block size limit, which is the amount of data that can be stored in each block of transactions, while others preferred to implement a solution called Segregated Witness (SegWit), which reduces the size of each transaction by removing some data.

The proponents of increasing the block size argued that it would allow more transactions to be processed per block, thus reducing fees and congestion on the network. The opponents of increasing the block size claimed that it would compromise the security and decentralization of the network, as larger blocks would require more computing power and storage space to validate and store.

The dispute led to a hard fork, which is a type of fork that creates two incompatible versions of the same cryptocurrency that cannot communicate with each other. Those who supported increasing the block size created Bitcoin Cash, while those who supported SegWit stayed with Bitcoin.

Bitcoin Cash initially had a block size limit of 8 megabytes (MB), which was later increased to 32 MB. However, this was not enough for some members of the Bitcoin Cash community, who wanted to follow the original vision of Bitcoin’s creator, Satoshi Nakamoto, who envisioned Bitcoin as a peer-to-peer electronic cash system that could scale to global adoption.

In 2018, another hard fork occurred within the Bitcoin Cash network, creating Bitcoin SV. Bitcoin SV supporters wanted to restore some features that were present in the original version of Bitcoin, such as the opcodes (instructions for smart contracts) and the difficulty adjustment algorithm. They also wanted to increase the block size limit even further, starting with 128 MB and eventually reaching 4 gigabytes (GB).

The main differences between Bitcoin and Bitcoin SV

The main difference between Bitcoin and Bitcoin SV is their approach to scalability. Bitcoin has a block size limit of 1 MB, which limits the number of transactions that can be processed per block. BSV, on the other hand, has a much larger block size limit of 4 GB, which allows it to handle millions of transactions per block.

The advantage of having a larger block size is that it can reduce transaction fees and waiting times, as more transactions can be included in each block. The disadvantage is that it can increase the requirements for running a full node, which is a computer that validates and stores all the transactions on the network. Full nodes are essential for maintaining the security and decentralization of the network, as they prevent fraud and censorship.

Another difference between Bitcoin and Bitcoin SV is their support for smart contracts. Smart contracts are self-executing agreements that can be programmed to perform various functions on the blockchain, such as escrow services, token creation, oracles, etc. Smart contracts can enable more complex and innovative applications on top of the cryptocurrency layer.

Bitcoin has limited support for smart contracts, as it only allows certain types of opcodes and has a scripting language that is not Turing-complete (meaning that it cannot perform all possible computations). BSV has restored some opcodes that were disabled in Bitcoin and has a Turing-complete scripting language called MetaNet. BSV also supports Non-Fungible Tokens (NFTs), which are unique digital assets that can represent anything from art to collectibles.

The advantage of having more support for smart contracts is that it can expand the use cases and functionality of the cryptocurrency. The disadvantage is that it can introduce more complexity and risk to the network, as smart contracts can have bugs or vulnerabilities that can be exploited by malicious actors.

The implications for investors and users

Bitcoin and Bitcoin SV have different trade-offs and visions for the future of cryptocurrency. Investors and users should consider their own preferences and goals when choosing which one to support or use.

Bitcoin and Bitcoin SV have different trade-offs and visions for the future of cryptocurrency. Investors and users should consider their own preferences and goals when choosing which one to support or use.

Bitcoin is more focused on being a store of value and a digital gold, rather than a medium of exchange or a platform for applications. It prioritizes security and stability over scalability and innovation. It has a larger network effect and market capitalization than BSV, as well as more adoption and recognition among mainstream institutions and regulators.