700597: Remember this number. This is the block number for one of BSV’s biggest blocks to date at nearly 1.25 GB, but it’s the least important part. What makes block 700597 special is that it is the first Bitcoin block to earn its processor a higher transaction fee return (6.33 BSV) than the block subsidy (6.25 BSV). Even in these “early days” BSV is proving that its business model is working.
Before anyone had time to catch their breath, BSV even broke that record with block 700606, which generated around 2 GB and generated over 10 BSV in transaction fees.
Block 700597 was processed (or “mined”) by SVPool at 1:38 PM UTC on August 16, 2021. It contained 4,546 transactions and was 1,247,906,363 bytes long. More importantly, it generated 6.33025237 BSV (roughly $ 1,074) in fees, which is more than the 6.25 BSV that block grant processors receive for verifying a Bitcoin transaction block.
– Lise L. 慧 子 (@ Lise0508) August 16, 2021
If you have recently noticed very large blocks on the BSV network, there is a reason for this. The BSV protocol, like Bitcoin as it was originally published, has no hard-coded limit on block size. Instead, processors define their own “soft caps” based on their technical capabilities. SVPool and TAAL Distributed Information Technologies Inc. (CSE: TAAL | FWB: 9SQ1 | OTC: TAALF) processors both lifted their block limits to prove that it was possible.
It was only last week that BSV celebrated its biggest block at just under 1GB, although we predicted that soft caps would rise further, allowing many more records to be broken in the near future. . This is what is happening now.
Here is BSV block # 700597
~ 1.25 GB pic.twitter.com/0U49lVPPRW
– Elon Moist u / 4 (@coinyeezy) August 16, 2021
For a little more context, the main argument that formally divided the Bitcoin community in 2017 was whether the Bitcoin network could, or should, increase its block size limit. The “small blockers,” who now control the BTC network, argued that a Bitcoin block should be 1MB (yes, megabytes). They reluctantly agreed to a “deal” to increase it to 2MB by the end of the year, before going back.
Bitcoin’s blockchain, they said, should serve as a “settlement layer” for transactions that occur off-chain, on “second layer” networks. The unreliable Lightning Network is the best-known proof of concept attempt for this. To slightly increase the number of transactions per block, BTC fundamentally changed Bitcoin’s protocol and business rules by introducing a separate witness (SegWit), which removed digital signature data from the transaction data it corresponded to.
When miners / processors complained that limiting block size (now referred to as ‘block weight’ on BTC) would result in lost revenue, they were told that users would instead pay a premium for transaction fees. It went against everything Bitcoiners had promised in previous years, and today BTC fees for a single transaction can be high enough to make banks and Western Union blush.
This is not the model that BSV, Bitcoin or Satoshi Nakamoto wanted. Bitcoin should focus on high transaction volumes, a large capacity (data) network, and low fees. In this way, everyone could be satisfied: users could pay a single penny for regular payment transactions, while high-volume data applications could make deals with processing operations to pay even less, generating revenues. million transactions per day.
Meanwhile, even die-hard BTC adherents continue to complain about fees of $ 20- $ 60 for one-time transactions (no matter how much money they send) and trades being abandoned because the blocks were too full. . The price of BTC can explode, but many users find that this is when it is virtually impossible to send anything.
Blocks 700597 and 700606 now exist to prove that transaction processors can earn more fees than block grant, by verifying blocks containing thousands of transactions. It’s important to also note that the Bitcoin SV Node team is completely revamping the protocol software (while strictly maintaining its “indeterminate” rules) to create Teranode, which, when activated, will make last week’s records paltry in comparison. .
Watch: Teranode Live Demo Showing 50,000 TPS on BSV Blockchain
New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.