How Does Bitcoin SV Stand Up to Other Blockchains?

Nov 23, 2021 | Blockchain, Digital Finance, Foundations, NFTs

Blockchains are like companies, each with a different investment proposition. Bitcoin SV, or BSV, has become a popular blockchain for certain operations. 

People creating non-fungible tokens (NFTs) are looking at BSV as an attractive host chain. Traders are looking at the value of BSV-related assets. 

Why is this such a competitive blockchain to Bitcoin (BTC) in the rapidly evolving world of decentralized finance? 

This article will describe the elements of blockchain value for long-term crypto investors. 

Bitcoin SV (BSV) vs. Bitcoin (BTC) 

So, what’s different about Bitcoin SV? 

As blockchain technology evolved through the end of the last decade, a lot of progress was being made and smart contracts were introduced, which involves putting the terms of the agreement between the seller and buyer directly into lines of code and written onto the blockchain. 

For instance, Ethereum, the second most known and expensive blockchain after Bitcoin, gained quite a reputation as a dominant host for blockchain activities with smart contracts. We’ll get to that in a minute.  

Before BSV came to be, there was Bitcoin Cash (BCH) which was created to continue the original Bitcoin protocol when BTC added features, such as Light Network and Segwit, which were non-compliant with the protocol, and so forked away in 2017 to continue to leverage these features.  

Then BCH diverted from the original Bitcoin protocol as it introduced non-compliant features in 2018. That’s where BSV came in – as BCH forked away, BSV remained as the original Bitcoin protocol from 15 November 2018. 

Key benefits of BSV: 

  1. Very low fees to encourage transactions.
  2. Chain architecture and tools – to support new application development among its active developer community.
  3. Unlimited scaling – its focus on mass scaling allows it to support unbounded data capacity and high transaction volumes.
  4. Super-fast transaction speeds in part thanks to its huge block size.
  5. Strong investor support.
  6. Blockchain market capitalization and good liquidity. 

Bitcoin SV vs. Ethereum (ETH) 

As we mentioned, Ethereum has been the dominant model for many smart contract activities and other kinds of blockchain functions. 

ETH has its own ecosystem and community. Entities like Consensys have advanced the familiarity of Ethereum and its reach in terms of a global audience. ETH, in comparison to most altcoins, doesn’t need a lot of brand visibility. 

Bitcoin SV, by contrast, doesn’t have a lot of that. It’s not on as many exchanges as ETH, and not as many people know what it is. 

What it does have is the ability to help user systems facilitate faster and less expensive transactions. For a while now, asset holders and others have complained about high gas fees on Ethereum blockchains. Gas fees are the fees that buyers must pay to reimburse miners and developers for the costs of maintaining them on the blockchain. 

BSV is seen as far less expensive and much more agile than Ethereum though in terms of facilitating smart contracts. So, some entrepreneurs and developers are choosing to go with BSV as a blockchain alternative. 

Bitcoin SV vs. Flow (XLM) 

In terms of offering the kinds of speed and simplicity that today’s blockchain participants want, Flow is a more formidable competitor for Bitcoin SV than either BTC or ETH. Designed more recently by Dapper, Flow offers the ability for scaling without sharding (a method for redistributing the computational and storage workload across a peer-to-peer network so that each node only maintains information related to its ‘shard, support for decentralized applications (Dapps), and a build specific to the needs of the NFT community. 

Flow’s proof of stake consensus protocol and FLOW tokens are part of this capable blockchain ecosystem too. 

Dapper also contends that Flow’s combination of consensus, verification, execution, and collection node types helps speed up the process of using FLOW for transactions and more. 

What Flow doesn’t have, once again, is the brand visibility. People who associate Bitcoin SV with Bitcoin feel more comfortable with it because they associate it with the first digital currency and the most widely accessible in the world. In an age where you can buy Bitcoin at ATMs or in a Walmart or on PayPal or some other payment facilitator, anything with ‘Bitcoin’ in its name will likely have a bit of an advantage. 

When people realize that SV means ‘Satoshi’s Vision,’ Bitcoin SV gets another boost. Anyone serious about digital currency probably knows about Satoshi and understands how this as-of-yet pseudonymous individual was responsible for so much of the foundation of blockchain assets and activities we now enjoy. 

The bottom line is that Bitcoin SV is proving superior for NFTs. Its low costs, transaction speeds, and unlimited scaling capacity make it the perfect choice for trading tokens, and it’s an excellent ecosystem for new projects that want to use today’s blockchain context to develop.

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