2019 CHAINSIGHTS | Jimmy Nguyen: Make Bitcoin SV be the Global Enterprise Blockchain

Abstract : Bitcoin SV emerged to reclaim the original Satoshi's design and protocol, enable it to massive scale and create what we believe, should be the global enterprise blockchain.


Oct 20

The Founding President of Bitcoin Association Jimmy Nguyen has given a speech at the 2019 CHAINSIGHTS Fintech and Blockchain Summit hosted by ChainDD on October 10 in New York, in which he mentioned that "Bitcoin SV emerged to reclaim the original Satoshi's design and protocol, enable it to massive scale and create what we believe, should be the global enterprise blockchain".

CHAINSIGHTS is a global platform to connect the blockchain and fintech innovators with the supporters and investors from East and West and carry the critical mission to unlock our community's potential, to empower revolutionaries to challenge the status quo and to create a better digital future of our financial life.

The following is the transcript of his speech:

The answers we seek often lie right in front of us, if only you're willing to see and believe. Many of you have convened here at this conference from around the world, enterprise representatives, financial institution representatives and others, seeking answers in this blockchain and cryptocurrency world. Questions such as what blockchain should an enterprise build upon, which cryptocurrency will gain actual usage and command the highest in market value, and the reasons we are asking those questions are because the world of blockchain and cryptocurrency has gotten too complicated.

We live in a world now with a thousand different blockchain and cryptocurrency projects. It's too much. Would it be simpler if there was a single global data ledger, a single public blockchain like the whole world's business operator, just like we operate on a single global Internet. Wouldn't that unite us all and avoid all these complexities that we're facing in the blockchain world?

The answer is yes. It can be. But it's been staring us in the face all along and people didn't think it was possible. The answer lies in this. Bitcoin. The original blockchain. The one that started it all. That birth to the world in the white paper of Nakamoto has created the peer-to-peer electronic cash system. But Satoshi's protocol did more things that people did not understand. It laid the foundation for black champion, a data ledger if it was allowed to massively scale and use all of its technical capabilities to provide the global blockchain for all the public enterprise applications. Unfortunately over the past 10 to 11 years of Bitcoin's life, it has been allowed to grow into this vision, but it was artificially and crippled the capacity of the blockchain and limited its technical capabilities. Because they didn't do what we in the Bitcoin SV camp are doing, which simply believes in Bitcoin's true power, its design and protocol that if unleashed can supply the enterprise blockchain for the future. That's what we are doing. Bitcoin SV emerged to reclaim the original Satoshi's design and protocol, enable it to massive scale and create what we believe should be the global enterprise blockchain. That satisfies all of these needs. I travel around the world and I talk to businesses all the time of what they want and need in a blockchain, and this is the list of attributes that keep coming up again and again. Things you'll know about. A blockchain, with low and predictable fees, is transparent, public, auditable and verifiable, one that creates a level business friendly ecosystem. One with a stable network and protocol, and all of other attributes you can see on screen. Bitcoin SV is the blockchain project that can check all of those boxes, and can deliver to enterprises all in one place.

Today I want to talk to you about just two of those needs, because they are two of the ones I hear most about from enterprises: a blockchain that's scaleable and has low predictable fees. I'm going to tell you why Bitcoin SV, in restoring Bitcoin's original design, is finding the answers to those features which have escaped so many other projects by looking right in front of us, in front of the original Bitcoin blockchain. So let's talk scaling. This has been the problem for blockchain projects for so long, and once BTC decided through the core development group to restrain capacity of the blockchain on BTC. Bitcoin SV is the only massive scaleable blockchain that you're going to see. Let's talk about the history. BTC, its block size is still restricted to 1 megabyte inside. That's very tiny. It does not fit to many transactions, and that's why the BTC network has not scaled. You are talking about a capacity of three transactions a second or at most 7 transactions a second that where no rival visa or master card payments a second would do 2,000 transactions a second on average and 56,000 transactions a second at the peak period, and that's what you need to do if you are going to truly create a Satoshi vision of a peer‑to‑peer global electronic cash system. So the answer is to believe in Satoshi's original design of unlimited scaling of the Bitcoin blockchain. There is a reason why this is so important. It's not just because I like big blocks. It is because of the economic impact on the network. When you have small and tiny blocks as you do on the BTC network, you can't fit all the transactions into every block that people are trying to send. They wait somewhere in the pool that is uncovered, and to get your transactions into the blockchain, you have to pay higher fees to the miners to essentially entice them to get your transaction in. This has led to immense volatility in the bitcoin BTC fee charts. There has been a spike January 2018, and almost $40 was sent to a bitcoin transaction.

It's come down but it's still volatile and unpredictable. On May 29th you had fees of $4 on transaction of BTC, now it's about $0.40, last month it was about a dollar but that unpredictability is bad for businesses because businesses need predictability. The Ethereum blockchain is almost full.

Satoshi predicted there's only one global chain at the time that bitcoin can scale much larger even than the Visa credit card network, and it never really hits a scale ceiling. But it was not allowed to achieve that vision. How are we doing that on Bitcoin SV?

After our protocol upgrade in July of this year, the BSV network is at a default 2,000 megabit. It is far larger than before. The miners are not setting to that right now, most of them are setting at 250 megabits which are so much larger than the previous chain, and two recorded blocks were mined in that compass capacity in July of this year through a stress test that happens to one of BSV's supporters of China in August. We saw huge numbers of transactions, 2 million transactions pumped into a chain in an hour, yielding 210 blocks with 800,700,000 individual transactions just in those blocks.

It goes to the point that seeing big blocks on BSV is rather boring. It's uneventful. This is a chart of block explorer in descending order of the biggest blocks so far on BSV. You'll see on the far right the sizes 256, 248. It keeps going down. That is because big blocks work steadily on Bitcoin. In February, we'll go through our upgrade which will lift the cap entirely, and let the miners through their own economic incentives determine what the block size can be. We have tested 12 consecutive blocks of 2 gigabytes in size. The meaning is much bigger through putting capacity. That's what is necessary to start sustaining an enterprise blockchain. We believe in so big that we can get your tiny size blocks to a million megabytes. The second factor is the low and predictable fees. This is critical for enterprises. They need to do a budget. We think that's too high on Bitcoin SV right now. We think that will go lower as the block size gets bigger, and it opens a whole world of new business models for enterprises. Micro payments. Imagine a world where you didn't pay your newspaper online a monthly or annual subscription to read the newspaper on the website, but you paid cents per article or blog posts, or if you paid a few cents to watch online video by the minute or by the second. What if online games you paid 10 or $0.20 for virtual items, or for every social media interaction you had or when someone interacted with you, they paid you micro payments which are possible at smaller levels on BSV because it is so cheap to send a transaction. That opens the world to our concept of the Metanet where the Bitcoin blockchain can power and subsume the entire Internet, because it can combine the functions of sending money with sending data in one native transaction and can create a more commercial Internet where users' activity and data has more value to you as a user.

So let me end with this section, which is with this scale, what is it that enterprises can build on Bitcoin SV? They can build a lot. We are seeing it all over the world, even in the short time BSV has existed. The Drive Markets is an institutional exchange in Canada specializing in 4X trading. They are building a network to increase the efficiency of the settlement and clearance process of financial institutions especially across the border, and they are building it on the Bitcoin SV blockchain because of its efficiency. One store just announced last week in Seoul will be powered by Bitcoin. It will allow music artists to upload their content, music and video files to the app, and users can show their love by touching on the app and guess what happens? The user pays the artist in Bitcoin SV tokens and then amount is distributed to the different holders that are involved in creating a song. It solves one of the efficiency problems we have seen in music, using the blockchain. Kronoverse has a dragon's type online battle game. It is using the Bitcoin to record game data. Every move of the balances is to create the auditability and traceability of the battles, and it will transform the online sports world. Bit Boss is a gaming solutions provider also here in the United States, which is using the BSV Bitcoin to transform casino gaming. Therefore, if you go into a land casino, instead of uploading money to a card, you use a mobile app they are providing to either load up on either BSV or BSV token and use that to connect and play slot machines. It allows tracing and verifiability on the blockchain and changes the casino experience for players. In the property tech world, a company in Japan is testing the BSV Bitcoin to have a title registry for land, title and leases and more interestingly using earthquake detection technology where sensors are placed on buildings, like IoT devices that feed data to monitor the building for earthquake detection in Japan, to the BSV Bitcoin. They need a chain that sustains a lot of data and a lot of throughput capacity, and that's why they're choosing to do it BSV. That leads to the area that I think is most exciting for Bitcoin and that is the Big Data and AI. It's going to be possible with only BSV. We're seeing data streams already coming to the Bitcoin. Weather SV is an application that allows you to open up a weather channel for a city and feed constant weather data for the blockchain like I can do in my current hometown of Seattle. Uptime SV is our first project of BSV hackathon. It allows you to use your mobile phone's computing power to help companies.The application is getting lots of data from around the world. Rate SV is using financial data to be fed and recorded to the blockchain, so you can open a channel that records stock prices and cryptocurrency prices. What does this mean?

It means the BSV becomes a universal public auditable and verifiable store of data that can be used by big businesses for data analytics, and one day it takes advantages to become machines for artificial intelligence. All possible because we believe in Bitcoin's true power. The answers to all the enterprise's Bitcoin questions have been staring us in the face all along. People went on divergent paths with the projects you hear about. But if Bitcoin had only been allowed to scale for all these years, if its technical capabilities had been unlocked, the world that I am seeing in the future would have already started. That's why we fought the battle to preserve the original Bitcoin protocol and we're storing it in Bitcoin SV. It's why we're working hard to massively scale. It's why developers around the world are waking up and seeing this is the Bitcoin that will sustain what I need to create amazing applications, and why they're increasingly saying we choose SV. So as you consider the future of Bitcoin and cryptocurrency in your world, I ask you to take a moment and take a look at Bitcoin SV. It has the answers you need because those answers have been in front of us all along, as long as we're willing to see and to believe.

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