Bitcoin (BTC) and Bitcoin SV (BSV) are two cryptocurrencies causing a stir in blockchain technology. Bitcoin is the oldest and most popular cryptocurrency, known for its decentralized nature and ability to facilitate secure peer-to-peer transactions without intermediaries. On the other hand, BSV is a relatively new cryptocurrency created in 2018 as a fork of Bitcoin Cash, which itself was a fork of Bitcoin.
Despite their similarities, Bitcoin and BSV have unique features, and their differences are worth exploring. In this comparison, we’ll dive deeper into Bitcoin vs. Bitcoin SV and discuss the key factors that set them apart.
Key Takeaways
- Bitcoin and Bitcoin SV are different cryptocurrencies with similarities and fundamental differences.
- Bitcoin operates on a decentralized network as a general-purpose cryptocurrency for payments and investment.
- BSV has a larger block size limit than Bitcoin—128 MB, allowing more transactions to be processed in each block.
- BSV results from a hard fork from Bitcoin Cash in 2018, created by Craig Wright, who claims to be the real Satoshi Nakamoto.
| BTC | BSV | |
|---|---|---|
| Market cap | $541 billion | $694 million |
| Launch year | 2009 | 2018 |
| Creator | Satoshi Nakamoto | Craig Wright |
| Safety | Bitcoin uses a proof-of-work consensus algorithm that ensures that each transaction is verified by multiple nodes in the network, making it harder for any individual or group to manipulate the system. | Bitcoin SV has a block size limit of 128 MB that allows for more transactions to be processed in a shorter time frame. This approach offers faster transaction processing times but also increases the risk of network centralization and potential security vulnerabilities. |
| Anonymity and traceability | Bitcoin is designed to be pseudonymous, meaning that transactions are publicly visible on the blockchain, but the identities of the parties involved are not typically revealed. | Bitcoin SV follows the same approach as Bitcoin, although it has been criticized for being more transparent and less private. |
What Is Bitcoin (BTC)?
Bitcoin (BTC) is a decentralized digital currency that emerged in 2009, created by an anonymous person or group operating under the pseudonym Satoshi Nakamoto. Bitcoin is based on a decentralized network that utilizes blockchain technology. It allows people to send payments to each other without the need for a centralized intermediary, such as a bank, credit card company, or government.
The bitcoin network operates using a distributed ledger called the blockchain, which is essentially a public digital ledger of all transactions that have taken place on the network. Bitcoin transactions are processed by bitcoin miners who use their computing power to verify and validate transactions before adding them to the blockchain. This process, known as mining, involves solving complex mathematical problems in exchange for new bitcoin units.
Bitcoin has a limited supply of 21 million coins, with approximately 19.3 million currently circulating. Additionally, bitcoins are held in digital wallets secured using private keys.
What Is Bitcoin Satoshi Vision (BSV)?
Bitcoin SV or Satoshi Vision aims to restore the vision of Bitcoin’s original creator, Satoshi Nakamoto, by creating a fast, scalable, secure cryptocurrency that can handle a high volume of transactions. It claims to be closer to the original design of Bitcoin, with a focus on stability, security, and regulatory compliance.
Where Did Bitcoin SV Come From?
Bitcoin SV emerged due to a hard fork in the Bitcoin Cash network in 2018. Bitcoin Cash was created due to a hard fork from the original Bitcoin network in 2017. The hard fork that created Bitcoin SV was initiated by Craig Wright, an Australian entrepreneur and computer scientist who has claimed to be the real Satoshi Nakamoto. However, this claim has been met with skepticism in the cryptocurrency community.
How Does Bitcoin SV Work?
Bitcoin SV works like other cryptocurrencies, such as Bitcoin. It operates on a decentralized blockchain network that utilizes a proof-of-work consensus algorithm to validate and add transactions to the blockchain. BSV has a block size limit of 128 MB, compared to Bitcoin’s 1 MB limit, which allows more transactions to be processed and may make it more efficient and cost-effective than other cryptocurrencies.
BSV also incorporates features like smart contracts, allowing decentralized applications to be built on the BSV blockchain network. Additionally, BSV aims to be regulatory-compliant, which means it may have features designed to meet legal and regulatory requirements in various jurisdictions.
Where to Store Bitcoin and Bitcoin SV Securely?
Guarda Wallet is one option for securely storing Bitcoin and Bitcoin SV tokens. Guarda Wallet is a self-custody wallet, meaning your keys and funds are your responsibility. The multi-currency crypto wallet allows you also to receive and send a variety of cryptocurrencies, including Bitcoin and Bitcoin SV tokens.
Guarda Wallet encrypts all user data and securely stores it while providing high-level security ranging from biometric login to backup files and multi-sig wallets. It supports over 60 major blockchains and over 400K tokens of leading protocols on multiple platforms, including Mobile, Desktop, and web browsers. It also offers integration with Ledger Nano S, a cold storage wallet.
Differences Between Bitcoin and Bitcoin SV
Bitcoin and Bitcoin SV share many similarities. While Bitcoin and Bitcoin SV are based on the same original Bitcoin codebase, they have diverged in certain ways. It’s important to know these differences to understand the two clearly.
Here are some differences between Bitcoin and Bitcoin SV regarding smart contracts and token addresses:
Smart Contracts
Bitcoin and Bitcoin SV have different approaches to smart contracts. Bitcoin does not natively support smart contract functionality. However, developers have created projects like RSK and Liquid that run on top of Bitcoin and add smart contract functionality. On the other hand, Bitcoin SV has natively integrated smart contract functionality, allowing developers to create complex contracts easily.
Token Addresses
Bitcoin and Bitcoin SV have different address formats for their tokens. Bitcoin uses the traditional address format that starts with a ‘1, 3, or bc1.’ Bitcoin SV, on the other hand, uses the original Bitcoin address format that begins with a ‘1.’ This can lead to potential issues if you’re not careful, as sending Bitcoin SV to a Bitcoin address or vice versa can result in losing your tokens.
Consensus Algorithm
Bitcoin uses a Proof-of-Work (PoW) consensus algorithm to solve complex mathematical problems, validate transactions, and create new blocks. Bitcoin SV also uses a PoW algorithm, but it has modified the original algorithm, such as increasing the block size limit and removing some restrictions on scripting that allow for more complex transactions.
Transaction Fees
Transaction fees for Bitcoin and Bitcoin SV are determined by the number of transactions waiting to be processed and the amount of network congestion at the time of the transaction. However, Bitcoin SV generally has lower transaction fees than Bitcoin due to its larger block size limit, which allows for more transactions to be processed per block, resulting in less network congestion.
Scalability
Bitcoin has faced scalability issues due to its 1MB block size limit, which limits the number of transactions processed per block. Bitcoin SV, on the other hand, has increased the block size limit to 128MB, allowing for much greater scalability. Additionally, Bitcoin SV has implemented several scalability solutions, such as the Teranode project, to increase the number of transactions processed per second.
Conclusion
The debate between Bitcoin (BTC) and Bitcoin Satoshi Vision (BSV) has been ongoing for some time now. While BTC focuses on creating a digital currency with limited supply, BSV advocates for the vision of founder Satoshi Nakamoto—to create an open-source platform that allows users to build applications related to digital payments and financial services.
On one side, BTC has been around for longer and is the biggest cryptocurrency player in the world in terms of price and market cap. However, BSV offers faster transaction times and lower fees, making it attractive to those who want to move money quickly and cheaply. Although both networks have merits and demerits, they share one common goal: creating a decentralized, peer-to-peer electronic system that provides greater financial inclusion.
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FAQ
1. Is Bitcoin SV better than Bitcoin?
Bitcoin and Bitcoin SV share a common ancestry as they stem from the original Bitcoin blockchain. One of the major differences between BTC and BSV is their approach to scaling. BTC has a limited block size of 1 MB, which limits the number of transactions the Bitcoin network can process per second. BSV, on the other hand, has a much larger block size limit of 128 MB, allowing it to process a significantly higher number of transactions.
Despite these differences, BTC remains the most well-known and widely used cryptocurrency, with a larger market capitalization and acceptance among businesses and individuals. BSV, on the other hand, is still a relatively new and lesser-known cryptocurrency, with a smaller following and adoption.
2. Is Bitcoin SV more secure than Bitcoin?
Bitcoin SV (BSV) claims to be a more secure and scalable version of Bitcoin. However, it is important to note that security is complex and multifaceted and cannot be assessed by a single metric or factor. While Bitcoin SV may offer some technical improvements over Bitcoin, it has not achieved the same level of adoption as Bitcoin.
3. Does Bitcoin SV have a future?
As with any cryptocurrency, it is difficult to predict the future of Bitcoin SV (BSV) with certainty. However, there are a few factors that may impact its prospects. Adopting BSV among users, developers, and businesses will be a key determinant of its future success. The more people and entities that use and transact with BSV, the more valuable it may become. Furthermore, the regulatory environment around cryptocurrency is constantly evolving, and regulation changes could impact the future of BSV.
