Using data on Bitcoin will not only be a technical decision, it will be an economic decision. The new disruptive use cases that will arise open up new markets for users and businesses looking to leverage the benefits of blockchain data storage and retrieval.
To have such an ambitious goal of disrupting each industry by aiming to have every bit of data on the chain, it is important to know that the value of data storage on the blockchain is derived from the use of a single global ledger like the way there is only one the Internet. Having information in several registers not only makes this data fragmented, but also destroys the economic security model which encourages minors to make a profit which keeps the network secure.
It is also the determining factor in keeping costs at a predictable level and constantly decreasing as the register increases in terms of transaction throughput and density.
Which version of Bitcoin can handle the all-new data economy?
Here are the technological metrics of the following three Bitcoin blockchains that share the same genesis block and the proof of work exploration algorithm required by miners to secure the network.
|
BTC |
BCH |
BSV |
|
|
Hash function |
SHA-256 |
SHA-256 |
SHA-256 |
|
Block size |
1 megabyte |
32 megabytes |
Unlimited |
|
OP_RETURN data capacity |
0.08KB |
0.22KB |
100 KB |
|
Tx / second maximum capacity |
seven |
160 |
10,000+ |
|
Average daily transactions (February 2020) |
325 502 |
43,892 |
588,384 |
|
Average daily transaction fees (February 2020) |
$ 0.68 |
$ 0.0046 |
0.00054 USD |
|
Median daily transaction fees (February 2020) |
$ 0.31 |
0.00088 USD |
0.00024 USD |
Bitcoin SV (BSV) is not only gaining in all technical capabilities, but judging by the most recent February measurements, it shows that it is the most frequently used and remains by far the cheapest.
This chart shows Bitcoin’s scaling trajectory since its creation in January 2009. BTC Core has not continued to increase the size of the blocks, which has led to stagnation and is now averaging daily block of 800 KB. In August 2017, BCH emerged to preserve the protocol, also failed and stagnated on average at 100 KB per block. This is due to their inability to know how to evolve, which has led their developers to become central planners by judging data use cases as spam.
Since its emergence, Bitcoin SV has experienced an unprecedented upward growth trajectory in just over 12 months and now has an average daily block size of 1600 KB and the size is increasing rapidly.
Now that BSV has restored the protocol and removed the limits, work is underway on Teranode to prepare to scale up to terabyte size blocks and beyond.
BSV is no longer in competition with other blockchains for chain data capture and aims to disrupt all existing business models in the world today.
Let’s examine the possibilities that can arise from storing data on the chain.
Immutable, secure and serverless data storage forever
Cloud-based storage services have been the next logical transition away from physical storage servers, but they both share similar limits, responsibilities and risks associated with loss, theft by hackers or data corruption.
From startups to large organizations, they will no longer have to worry about the responsibility that arises from the costs of storing customer data and all the maintenance necessary to guarantee security. It becomes a huge overhead, even for established businesses, and a huge barrier to entry for those looking to take off. Organizations can now outsource this capability to the blockchain, which is securely encrypted with no central point of failure, and will save a lot of costs in the process.
Data can be securely stored on the blockchain while remaining decentralized, encrypted and time stamped. Information cannot be changed and is continuously distributed and reconciled between nodes on the network.
Think of any files that you want to appear in the general ledger for the next 100 or even 1,000 years.
It will come at a cost, but it will be the peace of mind of having it time stamped and the immutability stored forever on the blockchain.
It can also influence the human behavior of what we choose to chain, as we are going to digitally sign transactions for what we decide to store in the general ledger forever, which makes us more responsible. This completely changes the landscape of digital artifacts that will be available for centuries to come, propelling humanity’s trajectory toward light as the blockchain continues to evolve into a machine of truth.
No more modification of history or records. No need to worry about hacking information. No need to worry if a company goes bankrupt and you lose all your precious data with it.
As the blockchain continues to grow in size, it also opens up a new market for specialized mining nodes that can provide a service to host these large files and charge a fee for the immutability and recoverability of this data. The beauty of the free market is that competition and the ongoing discovery of prices will determine what the costs should be between consumers and businesses.
Confidentiality, ownership and monetization of personal data
Large entities like Google, Amazon and Facebook know a lot about you and not only sell this information, but use this information against you to sell you more and take advantage of third parties like advertisers in the process.
This valuable information comes at a price, and until now there was no way to be able to securely control your own information. Now that your personalized data can be stored encrypted on the blockchain where you have the private keys, you are no longer the product. If you choose, you can sell your personal information, or segments of it, and companies will no doubt be happy to pay you directly for that information, as it has shown today that it is extremely valuable to them and that ‘they pay companies for your information. already.
Owning your data also means easy interoperability between different applications and services. If the company you chose to use as a portal to Bitcoin breaks down or if you no longer want to use their services because you have your private keys, you can switch to a competing company seamlessly. Whether it’s social media platforms, storage services or any other media related service. This encourages companies to compete to create the best applications and services for their customers.
New economic models that will shake up today’s giants
Cloud services, content delivery networks, website hosting, streaming services, social media, advertising, search engines, electronic data interchange (EDI), identity management, the list goes on. The power of Bitcoin is such that it will disrupt all these industries and existing businesses will have to adapt if they want to compete with new entrepreneurs who have already decided to take advantage of the technological capabilities and economic models provided by Bitcoin.
Microtransactions for Internet usage that could be as little as a fraction of a hundred, measured as pay per click, pay per use or pay per second viewed that go directly to content providers will be the way to go.
The companies offering these services will still be able to earn microtransactions to provide these services, but the existing advertising model where the user is the product will be gone. By volume, all parts will be enriched in richness, in time and, above all, will benefit from a better quality experience in the process.
Metanet is the successor of the Internet
The Metanet seeks to disrupt Internet failures today and create an alternative version which is a value-driven and incentivized global data Internet.
It will provide new ways to distribute information among users and enable new business models of electronic commerce that are not possible today because it has the ability to perform microtransactions. This can allow users to earn instant micropayments based on clicks, time or to add value in any way.
The ambition and enormity of this use case where every single digital interaction can be a transaction that is recorded on the BSV blockchain can only be possible with technology that has unlimited scaling limits, can manage the volume of transactions required per second for transaction flow. scalable and remains extremely low cost.
Patents tie it all together so companies can focus on construction
The last piece of the puzzle to be able to protect the Bitcoin protocol against the copying of competitors will play an important role in providing peace of mind to entrepreneurs who wish to commit to building their businesses with a long-term vision.
nChain has built an impressive number of blockchain patents in the past few years, working silently in the background. With around 200 patents already granted and 800 applications pending, nChain intends to use an entity’s largest blockchain patent portfolio to benefit only the BSV ecosystem.
“By the time my current list ends, the 1,450 documents I have already filed, the company will end up with around 6,000 patents.” – Dr. Craig S. Wright
This is important for anyone wishing to create an application at the enterprise level, as they wish to remain in compliance with the regulations and not be affected by future offenses likely to disrupt their activity.
The definition of what a microtransaction will continue to evolve
With more than half a million transactions in February 2020, the median transaction costs were 1/40e of a cent. Teranode being worked by the nChain team, with the ambitious goal of having the capacity to manage millions of transactions per second.
The more Bitcoin scales, the more the transaction volume is recorded in the general ledger, the less it costs everyone. The costs of microtransactions will continue to decrease, offering greater granularity which will open up a plethora of new use cases for data that our mind cannot yet understand or conceive.
Creative entrepreneurs around the world will be offered incredible opportunities that had not been possible before. And all of us, as users, will once again have complete control of our data.
Bitcoin SV will control the new data economy. No such technology has ever existed before. This is only possible because the economic incentives to make it happen have already been incorporated into the protocol.
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