A definitive guide to Bitcoin SV (BSV) and how is it different from the Bitcoin Cash
Bitcoin has gone through many hard forks and chain splits since the beginning, but no single hard fork has gained so much momentum other than Bitcoin Cash which is commonly known as BCH. The team behind Bitcoin Cash was very active in promoting Bitcoin on all the important marketing channels, which can be realized from the fact that they own the original bitcoin.com domain. It should be noted here that bitcoin.com is the domain for Bitcoin Cash, while the domain for the original Bitcoin is bitcoin.org.
Bitcoin Cash and what does it include
To put it simply, the hard fork that resulted in Bitcoin Cash happened because of the varying debate around scalability. Half of the Bitcoin community wanted optimization rather than increasing the block size, while the other half wanted to increase the block size first instead of the core optimizations like transaction arrangement in a block and SegWit.
Bitcoin Cash has two main differences:
In 2018, Bitcoin Cash wanted to add two new features, including:
Canonical Transaction Ordering (CTOR) — This would order all the transactions in a block, in such a way that the transactions with higher fees are included at the top while the ones with the lower fees would be included at the bottom.
OP_CHECKDATASIG — This is an OP code that would add more functionality to the Bitcoin Cash blockchain which include execution of smart contracts, oracles, atomic swaps and interoperability with other blockchains.
The birth of Bitcoin SV
A large part of the Bitcoin Cash community led by Craig Wright didn’t want to include these new features, because they believed that it would compromise the security and will result in more centralization. There were many other problems with the new proposed changes, like miners would include only those transactions that pay more fee and the ones with the smaller fees would take a lot of time to be picked up by a miner. In November 2018, Bitcoin Cash went through a hard fork and the Bitcoin SV (Satoshi’s vision) was born.
Bitcoin SV vs Bitcoin Cash and Bitcoin
Bitcoin SV differs widely from Bitcoin Cash and is closer to the original Bitcoin protocol. The differences include:
The main difference between the Bitcoin SV and Bitcoin Cash (or even the original Bitcoin) is the block size. Craig Wright recently told in an interview that they are experimenting larger 1 GB blocks that can handle around 2 million transactions per second. Right now, Bitcoin can handle up to 7 transactions per second, Bitcoin Cash can handle 116 transactions per second, while the Bitcoin SV can handle up to 500 transactions per second but it can reach a maximum level of 896 TPS at its peak.
Why Bitcoin SV (and even Bitcoin Cash) has such a low price compared to Bitcoin?
As of today, Bitcoin is trading at $9,535 while Bitcoin Cash is trading at $306 and Bitcoin SV is trading at $147. Many people ask that if Bitcoin Cash and Bitcoin SV use the same core as that of Bitcoin, then why they differ so much in price? The answer is, it’s all about ‘adoption’ and ‘community’. Bitcoin is more trusted, it has a much bigger adoption and it has a very healthy developer and investment community. On the other hand, both Bitcoin Cash and Bitcoin SV has a much lower adoption, and a weaker community. The demand for Bitcoin Cash and Bitcoin SV is also very less, which means that the market has already spoken out.