ZUG, Switzerland, July 7, 2022 /PRNewswire/ — The BSV Blockchain Association says that decentralization is not the purpose of Bitcoin. “Decentralization,” or rather, “node distribution” is simply a means to an end, which is to provide some of Bitcoin’s security toward achieving the main purpose of the technology. That main purpose is to give the world a frictionless electronic cash system by way of a distributed network of nodes which validate and record transactions made directly between individuals. To that end, the BSV Blockchain Association welcomes the examination of claims regarding blockchain technology’s assumed decentralization by way of nodes and distributed governance, as seen in the recent report from Trail of Bits, “Are Blockchains Decentralized?”
BSV stays true to the white paper written by Satoshi Nakamoto. What makes Bitcoin secure is a careful mix of economic incentives and the knowledge that Satoshi Nakamoto defined Bitcoin’s “decentralization” as little more than the lack of a single “server or trusted parties.” Bitcoin is also more obviously secured by contract law, property rights and the fact that the protocol is set in stone with clearly defined copyright and license. Therefore, it cannot be altered by anyone, and nodes do little more than enforce these principles.
Having said this, with BSV’s set-in-stone protocol that remains true to the original vision of the white paper, the BSV blockchain can provide scalability, security, and sufficient network decentralization to fulfil bitcoin’s true purpose of real-world functionality as digital cash. BSV is not centralised but empowers direct person to person (P2P) transactions using IP to IP based on the end to end model restored by the new Internet Protocol version 6 (IPv6).
Managing Director of the BSV Blockchain Association Patrick Prinz said: “Blockchain technology was designed to equip businesses to integrate with the data economy through a distributed, secure, scalable, and stable infrastructure. Unfortunately, most implementations of the technology have led us further away from this goal by building countless separate blockchain infrastructures leading to lost cost efficiency, scalability, and security of an interoperable system. Private blockchains have recreated centralised private company ledgers with no more than a hint of blockchain’s core security model. The BSV blockchain remains true to how blockchain and digital assets were planned by operating a truly stable protocol.”
NOTES TO EDITOR:
About Bitcoin’s decentralization
To find out more about the commonly misunderstood concept of decentralization see links below:
- Dr Craig S Wright, creator of the Bitcoin protocol’s articles; ‘Decentralisation‘, ‘On Decentralisation‘ and ‘The Cult of Decentralisation‘.
- Bitcoin Curriculum Specialist Evan Freeman’s exposition on the topic against the backdrop of Bitcoin’s consensus mechanism, ‘Clearing up misunderstandings about Bitcoin’s decentralisation‘.
- ‘Bitcoin SV: what it is and how it restores the promise of enterprise blockchain‘, an eBook by the Bitcoin SV Academy.
About BSV Blockchain Association
BSV is the ideal blockchain for enterprise and government projects. With unbounded on-chain scaling, the BSV Blockchain Association meets the needs of large-scale technology applications: high transaction volumes, fast speed, predictable low fees, micropayment capabilities, and greater data capacity. Its powerful technical capabilities enable smart contracts, tokenization, IoT device management, computation and more. As a public ledger, BSV also enables transparency, auditability and more honesty for governments, citizens, and enterprises. Applications on BSV now span a wide array of industry sectors – media & entertainment, social media, online games, Metaverse/AR/VR, digital advertising, data integrity, ID management, government services, supply chain, accounting, RegTech, distributed network intelligence, Internet of Things, and financial services. BSV also supports an environment-friendly and regulation-compliant blockchain ecosystem that enterprises and governments want.