Bitcoin SV : What is it?

In 2009, Bitcoin blazed the trail for cryptocurrency innovation and made a name for itself as the very first digital currency. Developed by an anonymous individual or group of individuals known only by their pseudonym Satoshi Nakamoto, Bitcoin sought to revolutionize money movement and decentralise it at the same time. In this useful article we will explore in greater detail what exactly is Bitcoin SV, its purpose and much more so kindly continue reading!

Bitcoin, while a revolutionary currency, brings with it an unfortunate side-effect; its Proof of Work mining mechanism consumes enormous amounts of energy. To validate and record transactions to the blockchain (as well as mine new Bitcoins from these processes) requires immense computing power – so much so that electricity usage is spiking dramatically. This surge in energy consumption has serious implications for our environment, making Bitcoin’s sustainability all but impossible.

The limited block size of only 1MB on the Bitcoin network is one primary culprit that makes scaling difficult. This specific parameter dictates how much data can be stored within a single block prior to its permanent addition to the blockchain itself, and it requires roughly 10 minutes for completion per block. Therefore, adding sizable amounts of transaction data necessitates multiple blocks being generated – an endeavor which takes up substantial time and energy in return. Additionally, processing large transactions speedily as well as costly fees contribute towards hindering scalability potential with cryptocurrency networks such as Bitcoin’s.

To resolve the issues of transaction speed, Bitcoin Cash developers created a new system with an 8MB block size – and eventually a 32MB block size. This change expedited transactions on the network significantly; however, many in the cryptocurrency space believed that further optimization could be achieved.

In 2018, a hard fork and the birth of Bitcoin SV – boasting 128MB blocksize that later stretched to 4GB- caused massive changes in cryptocurrency. Transactions on this network are notably faster since it can process over 50,000 transactions per second compared to Bitcoin’s meager seven (at time of writing). Furthermore, its larger block size reduces energy consumption when contrasted with both Bitcoin and Bitcoin Cash.

The expansive block size of Bitcoin SV allows for the scalability issue to be addressed, meaning more transactions can take place faster and with less energy. This means that Bitcoin SV is able to expand its user base as well as utilize blockchain products, all while preserving both performance and sustainability.

Bitcoin SV Vs Bitcoin Vs Bitcoin Cash?

Bitcoin, Bitcoin Cash and Bitcoin SV have one key difference – their block sizes. With 1MB for the former, 32MB for the latter and an incredible 4GB for Bitcoin SV, it’s clear that these three cryptocurrencies offer varied options when it comes to size.

With a significantly larger block size, the Bitcoin SV network can process transactions more quickly. The number of Transactions Per Second (TPS) for Bitcoin is around seven and 300 for Bitcoin Cash; however, with its incredible 50,000 TPS value, Bitcoin SV stands above them both! Moreover, this enables it to handle way more transactions at once while also making transaction fees on users much lower than those imposed by other networks like Bitcoin Cash and BTC.

When it comes to cryptocurrency taxes, the best thing you can do is stay informed and up-to-date. Crypto Tax Calculator Australia is dedicated to helping you accomplish just that. With our easy-to-use calculator, you can take the hard work out of calculating your profits and losses. So what are you waiting for? Get started today and see how much you could save!