BTC the first Digital Currency
It may interest you to know that in today’s cryptocurrency world, there are more than 5,500 different alternative coins or altcoins. However, Bitcoin stakes its claim as the first ever Cryptocurrency created by the mysterious “Satoshi Nakamoto” presumably a pseudonym for an unknown individual or group of persons.
Bitcoin or BTC was created on the 31st of October, 2008 as a “digital cash” with the technical details and specifications of the digital currency highlighted in the Bitcoin whitepaper released at the time as well. But it would take three months (January 3, 2009) before BTC would go live to rave reviews and a huge demand.
The emergence of Bitcoin would inspire the creation of a host of other digital currencies or altcoins which would serve to create competition in the market and to provide people with viable options to BTC. Some of the notable altcoins that would emerge include the “digital silver” – Litecoin and also Bitcoin Cash (BCH) which is an altcoin hard fork of Bitcoin and Bitcoin Satoshi Vision (BSV) which ironically is a hard fork of Bitcoin Cash.
Belows is a table highlighting the main differences between BTC, BCH and BSV
|1||CREATION DATE||OCT. 31 2008||AUG. 1 2017||NOV. 15 2018|
|5||INITIAL BLOCK SIZE||1 MB||8 MB||132 MB|
|8||MKT CAPITALISATION||RANKED 1ST||RANKED 5TH||RANKED 7TH|
Distributed, Decentralized Peer-to-Peer Networks
Bitcoin is an open payment network characterized by its peer-to-peer, distributed and decentralized operations. This trait makes it possible for individuals to easily join and carry out financial transactions on the Bitcoin network simply by having a functional internet connection. As a matter of fact, with a decent enough memory that can conveniently download the Bitcoin blockchain and a good internet connection, anyone can take part in the Bitcoin network as a miner or node.
With a verifiable Proof-of-work (PoW) consensus mechanism as the standard, miners will be entitled to a specific amount of Bitcoins for their work in including new blocks to the Bitcoin blockchain. By so doing, fresh BTCs will be circulated into the system, although there is a ceiling to the total amount of Bitcoins that will ever exist in circulation and this pre-established amount is 21 million BTCs.
The Bitcoin network also works on the basis of free entry and exit for miners. Meaning that nodes can join the network and leave at any time without restraint. The miners would be allowed to join forces and create a brand new blockchain of their own and this principle of free entry and exit will still apply to their newly formed blockchain. Bitcoin experienced a hard fork (a situation where miners can agree to leave the network to form a new blockchain) and the formation of Bitcoin Cash (BCH) emerged.
BCH a Hard Fork of BTC
The Bitcoin Cash is therefore an altcoin that came about when a group of miners decided to exit the Bitcoin blockchain and form their own blockchain. This occurred on August 1, 2017 and came about as a result of a disagreement between factions in the Bitcoin community mainly with regards to the scalability of the blockchain.
At the time, the size of a block under the Bitcoin network was 1MB. The discontent from a small group of members led by Roger Ver was based on the fact that the block size was too small and there was need to increase the block size and subsequently the scalability of the Bitcoin network. At a block height of 478559, the Roger Ver led faction in the Bitcoin network would eventually execute plans to create their own blockchain and digital currency called Bitcoin Cash (BCH).
The argument at the time of the founders of BCH, was that with an increase in the block size, the transaction speed per second would improve and users would be able to use the digital currency in carrying out everyday transactions with ease. While Bitcoin Cash offers a much larger block size, their PoW consensus mechanism is basically similar to that of the Bitcoin blockchain network.
Scalability is a Main Difference
So, the major difference between Bitcoin (BTC) and Bitcoin Cash (BCH) lies in their scalability, with the Bitcoin Cash (BCH) network offering a larger block size compared to the Bitcoin (BTC) network. With the large block size, the blocks under the Bitcoin Cash network are able to allow the execution of more financial transactions which ultimately improves the scalability of the network.
The blocks under the Bitcoin blockchain initially had a size of only 1 MB which meant that only seven (7) transactions per second could be achieved. However, the block size of blocks under the Bitcoin Cash network at the time was 8 MB which meant that each block could allow a total of fifty-six (56) transactions per second. In a day, the Bitcoin Cash network was able to handle as much as 2 million transactions at the time.
The scalability of the Bitcoin Cash network also meant that the processing of payments was faster and the processing cost was comparably less expensive than that of the Bitcoin network. In the same way that Bitcoin experienced a hard fork, so also did Bitcoin Cash.
In what could only be described as a karma-like incident, some miners of the Bitcoin Cash network also decided that the block size under the Bitcoin Cash network was too small. BCH members were intent on keeping the block size at a conservative 32 MB while some members wanted the block size to rise to a more dynamic 132 MB. At the end of the day, a hard fork of the BCH blockchain was inevitable and on November 15, 2018, Bitcoin Satoshi Vision or BSV cryptocurrency was created.
The main differences between three blockchain networks, namely; Bitcoin, Bitcoin Cash and Bitcoin SV lies in their block size. Bitcoin began with a block size of 1 MB, Bitcoin Cash wanted an increase to 8 MB at the time and BSV was not satisfied with BCH maintaining a block size of 32 MB, but instead wanted an increase to a much higher 132 MB.
Though BTC, BCH and BSV may share the name “Bitcoin”, in truth they are all independent digital currencies. With Bitcoin being the first ever cryptocurrencies, while BCH and BSV take their places in the world of cryptocurrencies as altcoins with each offering completely different and distinct roles in the market.
Market Capitalization and Pricing
In terms of market capitalization, Bitcoin (BTC) is ranked at number one while Bitcoin Cash (BCH) is ranked at number five and Bitcoin Satoshi Vision (BSV) is ranked at number seven according to updates from CoinMarketCap. In fact, BTC market capitalization is approximately 98 percent higher than that of BCH. On the other hand, BCH has a much higher market capitalization than BSV with a difference of almost USD $1b between the two cryptocurrencies.
When it comes to price, a single BSV is valued (as at the time of writing this post) at about USD $180 while BTC is priced at about USD $9,206. What this means is that for you to buy one Bitcoin (BTC) with Bitcoin Satoshi Vision (BSV), you would need to spend as much as 51.14 BSV.
Summarization of Pros and Cons of each crypto
- Ranked at number one in terms of market capitalization by CoinMarketCap.
- Very high value in the world of cryptocurrency with a price of around USD $9,206.
- Stability in the industry and market as the first digital cash currency.
- Unparalleled confidence amongst stakeholders, users and industry watchers.
- Comparatively poor scalability. As at 2009 the initial block size was 1MB.
- Comparatively low transaction and processing speed. As at 2009, the Bitcoin network could achieve only seven transactions per second.
- High transaction and processing costs.
- A comparably better scalability than BTC blockchain with an initial block size of 8 MB as at August 2017.
- Less transaction and processing fees when compared to the BTC network.
- A better market capitalization than BSV with a difference of up to USD $1b between BCH and BSV.
- Ranked fifth in the world in terms of market capitalization, BTC has a market capitalization that is up to 98 percent higher than BCH.
- A lesser block size than BSV.
- A better block size that both BTC and BCH to start with. As at November 2018, the BSV network was aiming for a block size of 132 MB.
- Lower transaction and processing costs than both BTC and BCH networks.
- A greater number of transactions per second compared to BTC and BCH blockchains.
- A much faster processing speed in comparison.
- Ranked seventh in the world in terms of market capitalization.
- BSV is yet to earn the kind of industry and market reputation of that of BCH and BTC networks.
The three cryptocurrencies all maintain a similar PoW consensus mechanism as well as entry and exit strategy. However, they are different in terms of their block size, scalability, market capitalization and price.