MNP, one of Canada’s Top 5 accounting, tax and business consulting firms, has developed an assessment framework to gauge which among the current implementations of Bitcoin best adheres to Satoshi Nakamoto’s original vision. Satoshi is the author of the Bitcoin white paper and creator of the digital currency, which is also the first working implementation of blockchain technology.
MNP has released the findings of its in-depth assessment on August 25, 2021, titled “The original Bitcoin protocol: What is it and why does it matter;” which found that between Bitcoin Core (BTC) and Bitcoin SV (BSV), “BSV is most representative of Satoshi’s original intention for Bitcoin.”
The MNP report has examined BTC and BSV’s capabilities, functional requirements, non-functional requirements and implementation attributes that include OpCodes, Bitcoin scripting and protocol elements. These criteria have been measured against the Bitcoin white paper, as well as other Satoshi interviews and related writings.
Which one is the original Bitcoin? This has always been a point of contention in the world of digital currency. Many hail BTC as the original since it was technically the first implementation of Bitcoin. However, two controversial forks have served to divide the original Bitcoin community; and many claim that what BTC has is only the original ticker symbol and nothing else. The MNP report findings may provide clarifications to those searching for answers—not only about which one is the original Bitcoin, but more importantly, what it truly is.
Three major differences between BTC and BSV
Scalability. As far back as 2009, Satoshi has written that “[Bitcoin] never really hits a scale ceiling.” This is evidence that scalability is central to Bitcoin’s original design. BTC has consistently refused to scale, which is actually a major disagreement within the Bitcoin community that resulted in the two forks. BTC has maintained its 1MB block size cap and a throughput of merely seven transactions per second (tps).
BSV, on the other hand, has restored the original Bitcoin protocol, unlocking the capacity of its blockchain to scale unboundedly in the process. Just last month, a record-breaking 2GB block was mined on the BSV blockchain, illustrating the network’s continuous scaling. BSV has also announced that it will release the Teranode project later this year, which will increase throughput to over 50,000 tps. These numbers show the great difference that divides BTC and BSV when it comes to scalability. Currently, BSV is the world’s largest public blockchain by all major utility metrics, from data storage and daily transaction volume to scaling ability and average block size.
Utility. Due to BTC’s resistance to scale that led to price volatility, high transaction fees and longer wait times per transaction, there is no way for it to have any other use except as pseudo digital gold. BTC traders wait for its price to go down before buying and for the price to go up before selling. Hence, it is described by experts as speculative investment.
“The original design intended Bitcoin to be used for other functions (beyond mere payments) such as vending machines, paid emails, SaaS products, website activations, etc.69 It is clear from the forum posts, writings, and community discussions the Bitcoin protocol was intended to scale to allow for many forms of payments. This includes macro-payments (i.e., settling an account at the end of the day) and micropayments (i.e., sending a small fee to access a service or send a text message),” the report stated.
In contrast, BSV has made it its goal to create a technology that will blend into the background and become plumbing that can be used for mass enterprise adoption—not merely a digital coin to be used for trading. At present, hundreds of global businesses across varying industries, continue to use the BSV blockchain to improve systems and streamline processes.
Energy Efficiency. Tesla CEO Elon Musk’s suspension of BTC payments for its car purchases due to its “rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” has recently made headlines and caused a catastrophic BTC price crash. This can also be attributed to BTC’s inability to scale and provide useful services.
But even with Bitcoin mining using a significant amount of energy, it is well worth it if it has an increasing throughput, block size and utility. “[BSV’s] required amount of energy per transaction should be significantly lower as the block size increases and more transactions can be processed by the network with each block,” the report pointed out.
BSV’s scalability, utility and energy efficiency make up three of the major reasons why MNP has deemed it the best implementation of the original Bitcoin. These three capabilities not only declare BSV far superior than BTC, but also make it a more sustainable technology that can be used far into the future, which is what Satoshi originally intended.
“In its complete form, the Bitcoin vision could have major implications for global financial institutions, consumer behavior, and investment strategies. Financial institutions which do not recognize and embrace cryptocurrency and include Bitcoin in their strategic planning could face elimination,” the report concluded.