Understanding Bitcoin, Bitcoin Cash, and Bitcoin SV: Differences and Essentials
Bitcoin, Bitcoin Cash (BCH), and Bitcoin SV (BSV) are often discussed in the context of cryptocurrencies, but they represent distinct blockchain technologies, each with unique characteristics and purposes. It is important to understand these differences, especially if you are using any of these cryptocurrencies in your portfolio or transactions. In this article, we will explore the key differences and how to recognize them in your wallet by their name, symbol, and icon.
The Birth of Bitcoin Cash and Bitcoin SV
Bitcoin Cash (BCH) and Bitcoin SV (BSV) emerged from the Bitcoin (BTC or XBT) blockchain through hard forks. A hard fork occurs when a change is made to the blockchain protocol of a cryptocurrency, and all nodes must upgrade to the new version to remain compatible with the network.
Understanding the Forks
Bitcoin Cash was created in 2017 through a hard fork of Bitcoin due to disputes over the block size limit. The original Bitcoin proponents favored a smaller block size, while the Bitcoin Cash proponents argued for a larger block size to facilitate more transactions. This resulted in two separate blockchains, with Bitcoin Cash aiming to increase transaction speeds and capacities.
Bitcoin SV (Bitcoin Satoshi Vision) was created in 2018 by core Bitcoin Cash developer Craig Wright, through another hard fork from Bitcoin Cash. BSV proponents argue for a return to the original Bitcoin whitepaper, focusing on scalability, developer freedom, and implementation of the scripting language.
Key Differences
Despite their common origin, Bitcoin Cash, Bitcoin SV, and Bitcoin are fundamentally different in terms of their philosophy, technical specifications, and user base.
Bitcoin
Bitcoin (BTC or XBT) remains the original and largest cryptocurrency. It is known for its decentralized and robust blockchain, and it aims to serve as a peer-to-peer electronic cash system. Bitcoin’s blockchain is designed with a fixed block size limit of 1 MB, leading to a maximum transaction throughput of about 7 transactions per second.
Bitcoin Cash (BCH)
Bitcoin Cash addresses the scalability issues of Bitcoin by increasing the block size to 32 MB, allowing for a much higher transaction volume. However, this change came with some trade-offs. Bitcoin Cash retains the Segregated Witness (SegWit) system, which helps improve transaction efficiency while maintaining compatibility with the original Bitcoin network.
Bitcoin SV (BSV)
Bitcoin SV takes a different approach, aiming to return to the original Bitcoin whitepaper. It focuses on high transaction throughput, low fees, and the implementation of the Bitcoin Script language for smart contracts and distributed applications. BSV proponents believe that by maintaining a block size limit of 8 MB, they can achieve the highest possible transaction speeds and fees.
Recognizing the Cryptocurrencies in Your Wallet
The easiest way to differentiate between Bitcoin, Bitcoin Cash, and Bitcoin SV in your wallet is by their unique address formats and symbols:
Bitcoin Address
Bitcoin addresses typically start with the letter '1' and are 34 characters long. They follow the base58 encoded format, which is a redundancy-check mechanism and a base-58 numeral system. Examples include 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa.
Bitcoin Cash Address
Bitcoin Cash addresses start with the letter 'q' and are 38 to 95 characters long. They also follow a base58 encoded format but are 16 or 34 characters in length. QR addresses are the most common, as they start with 'q'. Examples include qp75m9y78lsjyq6ttqjry0exfsa5z36hsynsfrpwuq.
Bitcoin SV Address
As of the latest updates, Bitcoin SV addresses are still not fully supported on major wallets like Coinbase. However, when they are, they are expected to start with 'bc1' and follow a similar format to Bitcoin Cash addresses. In the absence of full support, users can refer to the wallet's documentation for the latest address format.
Disclaimer and Warnings
It is crucial to stay informed and cautious when dealing with different versions of cryptocurrencies. While Bitcoin, Bitcoin Cash, and Bitcoin SV share a common history, they have distinct characteristics and are evaluated differently by the cryptocurrency community. Scammers often create clones or forks to trick users, so it is essential to verify the authenticity of any transaction or address.
Some notable clones or forks include Bitcoin Gold, Bitcoin Diamond, Bitcoin Atom, and Bitcoin Boy. These cryptocurrencies can be tempting for newcomers but are often risky and have a low chance of success. It is important to stay away from these and invest in reputable, well-established cryptocurrencies.
Remember, the security and integrity of your cryptocurrency holdings depend on your vigilance and knowledge. Always verify the legitimacy of any cryptocurrency you encounter, and prioritize those that are widely used and supported by the community.