By Elena Kireeva
There have been several myths which have been not only misleading for the all-encompassing blockchain industry and associated technologies, but also specifically affecting the Bitcoin SV chain and digital ecosystem.
Many questions have been raised around topics such as decentralisation, block mining and node operations in accordance with the BSV network. The first important issue is that of decentralisation and how it is enabled, encouraged and upheld by the blockchain platform.
At its fundamental level, decentralisation is the exact opposite model of centralised systems and network implementations.
Put specifically, decentralisation refers to a network infrastructure which keeps control away from any centralized authority or entity, and ‘decentralises it’, or distributes that said power across individual nodes on the network instead. In doing so, decentralisation has a targeted goal of removing the power that an individual entity may possess and abuse in order to alter, hinder, stop, slow down, or otherwise affect the decentralised blockchain platform.
Bitcoin SV, or the original Bitcoin as it is called by its platform community and some others, upholds the decentralisation model associated with blockchain science.
Operations which are enabled on the Bitcoin platform can persist, even when individual nodes are affected, down, or otherwise not functioning properly. This is due to the fact that the blockchain platform operates on a truly decentralized model base and premise.
Blockchain nodes are given the responsibility of validating and confirming blocks of information which is the inherent method of presenting transactions to the platform in order for them to be accepted, added and logged within the publicly verifiable BSV digital ledger. Nodes on BSV are represented by powerful computing machines in an enterprise-like framework.
ASICs, or ‘Application Specific Integrated Circuit’ machines, are industrial-strength, high-powered computing devices which are deployed and maintained by their operators in order to effectively mine blocks on the BSV network. Miners are the operators of these globally positioned nodes. Bitcoin SV reports encouraging and incentivizing nodes to scale the processing power and efficiency of the available network in order to create an efficient process of block settlement.
The process requires transparency which is also said to be rewarded by Bitcoin SV through the self-incentivising rewards structure that all miners take part in 100% voluntarily. When Bitcoin miners deploy nodes, they are then automatically incentivised to operate at high levels of efficiency in order to compete for block rewards collected in the validation and block creation process. This is known as a Proof-of-work (PoW) consensus algorithm, in which the showing of work is required in the block generation process in order for the block to be accepted.
The Proof-of-work blockchain consensus mechanism is the method described above, used to power and secure the original Bitcoin blockchain. There has been a growing misconception over some of the differences and actual qualities of both Proof-of-work (PoW) and Proof-of-stake (PoS). Each blockchain consensus is widely leveraged in the blockchain technology industry. The myths surrounding the two are mainly in references concerning each algorithm’s efficiency.
PoS has been said to be more energy efficient, as well as expressing a dramatically lower carbon footprint than PoW. The truth, however, is that PoW is still considered by many to be the most secure, and in some cases even, the only way to truly maintain blockchain science in the network infrastructure.
The Ethereum blockchain launched the second of a three part phase to PoS entitled ‘The Merge’. While hopes and promoted expectations were to increase efficiency and lower gas fees while maintaining security, it did not do so as of yet, and there have been more questions arising as to whether it actually will when ‘The Merge’ is complete. Bitcoin SV utilises the PoW consensus algorithm, and it has been known as a highly efficient, scalable implementation, all while .
The Bitcoin SV network creates a hurdle in order to ensure that only nodes with the intent set on adding value to the blockchain platform can participate in the process of block validation. This is the platform’s chosen method in securing the decentralized network. The referenced barrier for entry is the cost of associated resources needed in order to mine BSV. If a node was to join the network with malicious intent, it would require a considerable amount of the bad actor’s resources to be exhausted in order to compete and seek to adversely affect the platform.
By means of creating a reasonable cost barrier, Bitcoin SV seeks to uphold both decentralisation and fairness in node operation, as well as security. and as free from malicious behaviour as possible. Through this, and the aforementioned measures, Bitcoin SV enables a truly decentralised, genuine, transparent, secured blockchain model. While no undertaking is free from scrutiny and potential scepticism by followers, supporters, critics and others, Bitcoin SV has consistently worked to answer any doubts and enable a network that upholds the vision and apparent ideals of Satoshi Nakamoto, the original Bitcoin developer and visionaire.