Stake BSV

1. What Is BSV?

Bitcoin SV (BSV) emerged following a hard fork of the Bitcoin Cash (BCH) blockchain in 2018, which had in turn forked from the BTC blockchain a year earlier following the blocksize wars. BSV claims to fulfill the original vision of the Bitcoin protocol and design as described in Satoshi Nakamoto’s white paper, early Bitcoin client software and known Satoshi writings. BSV aims to offer scalability and stability in line with the original description of Bitcoin as a peer-to-peer electronic cash system, as well as deliver a distributed data network that can support enterprise-level advanced blockchain applications. To this end, it has removed artificial block size limits and re-enabled Script commands and other technical capabilities which had been historically disabled or restricted by the protocol developers of the BTC blockchain. This purportedly allows the network to process tens of thousands of transactions per second while maintaining extremely low transaction fees for micropayments, in addition to offering advanced capabilities such as tokens, smart contracts, computation and other data use cases. The BSV network claims to be unique in its capacity for unbounded on-chain scaling while also being more aligned with the original design of Bitcoin than any other blockchain.

2. Who are the founders of BSV (BSV)?

Blockchain technology company nChain developed the BSV node software and has regularly delivered protocol updates that restore the functionality of the original Bitcoin protocol. nChain now provides the BSV Infrastructure Team which continues to advance the node software and other infrastruture tools for the BSV network. Former nChain Chief Scientist Craig Wright, who claims to be the pseudonymous creator of Bitcoin, Satoshi Nakamoto, has been a supporter of BSV since the split between BCH and BSV in 2018, following the proposal of controversial protocol changes by several BCH developers. Entrepreneur Calvin Ayre is also a vocal advocate for BSV and regularly seeks investment opportunities in companies and projects building on the blockchain. After BSV split from BCH, a Switzerland-based non-profit industry association known as BSV Association was formed that now supports the global growth and adoption of the BSV blockchain and digital cash.

3. What makes BSV unique?

BSV differs from other versions of Bitcoin by allegedly adhering to the original Bitcoin protocol and focus on realising the vision for the Bitcoin network outlined in the Bitcoin white paper and other known Satoshi Nakamoto writings. BSV aims to offer a scalable and usable blockchain platform for efficient electronic cash payments and distributed data applications for consumer, enterprise and government users. Thanks to its unbounded block size, BSV can scale to meet market forces and accommodate the demands of any application and payment network without resorting to second-layer solutions. In 2021, the BSV network mined the world’s first gigabyte (1000+ megabytes) level blocks – reaching up to 2 GBs in August 2021; for comparison, 2 GBs is 2000 times the 1MB block cap of the BTC network. Block capacity of the BSV network is expected to continue growing further to support more transaction volume and data use caes. With testing of the new node software, the BSV Infrastructure Team has allegedly demonstrated the BSV network’s ability to handle up to 1,000,000 transactions per second and expects that capacity to be shown on the BSV mainnet and grow even higher in the future. With this capability, BSV rivals and aims to supersede the payment processing capabilities of platforms like VISA at a fraction of the cost to users. BSV also offers a scalable and product-ready platform for blockchain application developers. BSV claims to be capable of scaling along with user adoption, which means developers can be assured that transaction fees will remain low and interactions will be processed quickly.

4. How many BSV coins are there in circulation?

As defined by the original Bitcoin protocol, there will be a maximum of 21 million BSV coins in circulation. Fresh coins from this circulation are distributed to BSV miners via block rewards, which they earn in addition to transaction fees for validating blocks. Block rewards for miners are cut by 50% at predefined periods to slowly shift the reliance of miners on these subsidies to transaction fees and to reduce the flow of new tokens as they approach their maximum quantity.

5. How Is the BSV network secured?

BSV is secured by the proof-of-work consensus mechanism as described in the Bitcoin white paper. This means that for a block containing new transactions to be added to the blockchain, miners must solve a complex mathematical problem using their computer’s processing power. The miner who solves this problem first earns the block reward and transaction fees, and their block is added to the chain. As more blocks are built on top of their block, the validity of the transactions now stored on the chain are ratified by other nodes and become very difficult, if not virtually impossible, to alter.

6. Where can you buy BSV?

BSV is listed on major exchanges including OKX, KuCoin, HTX and other cryptocurrency platforms.

7. What is Blockchain?

Blockchain is a decentralized and distributed ledger technology that securely records transactions across multiple computers in a verifiable and permanent way. It forms the underlying technology for cryptocurrencies like Bitcoin and enables transparency, security, and immutability.

8. What is Cryptocurrency?

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on decentralized networks, typically based on blockchain technology, and facilitates secure and transparent peer-to-peer transactions.

9. What is Bitcoin?

Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It operates on a decentralized peer-to-peer network and is used for secure, transparent, and censorship-resistant transactions.

10. What is the difference between Bitcoin and Altcoins?

Bitcoin is the original and most widely recognized cryptocurrency, while altcoins refer to any other cryptocurrencies besides Bitcoin. Examples of altcoins include Ethereum, Ripple (XRP), Litecoin (LTC), and many others.

11. What is Staking?

Staking involves participants locking up a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network. It is commonly associated with proof-of-stake (PoS) and delegated proof-of-stake (DPoS) consensus mechanisms, where participants receive rewards for helping secure the network.

12. How Can I Stake Cryptocurrency?

To stake cryptocurrency, you typically need to choose a platform or network that supports staking. Transfer your tokens to a compatible wallet, follow the staking instructions provided by the platform, and lock up the desired amount of cryptocurrency. Once staked, you may start earning rewards.

13. What Are Staking Rewards and How Are They Calculated?

Staking rewards are incentives provided to participants who lock up their cryptocurrency to support the network. The amount of rewards varies and is influenced by factors such as the network's inflation rate, the total amount staked, and the specific rules of the staking protocol.

14. Can I Unstake My Cryptocurrency at Any Time?

The ability to unstake and withdraw your cryptocurrency depends on the specific staking protocol and network. Some platforms may have lock-up periods or unbonding periods during which your staked tokens are inaccessible. Always check the terms and conditions of the staking service.

15. What are the Risks of Staking?

Staking comes with risks, including the potential loss of staked funds if a participant behaves maliciously or fails to fulfill their responsibilities. Market volatility can also impact the value of staked tokens. It's crucial to thoroughly research the staking protocol and understand the associated risks.

16. Can I Lose Money by Staking?

While staking is designed to be a rewarding activity, there is a risk of losing money, especially if the value of the staked cryptocurrency decreases or if the staking protocol encounters security issues. It's important to consider both the potential rewards and risks before participating in staking.