Taking a different path from BTC, the BSV blockchain has removed the cap on block sizes. This revolutionary approach allows for a dramatically increased number of transactions per block, providing substantial transaction fee revenue for miners.
The concept of uncapping block sizes on BSV is unpacked in more detail in the new eBook – The next era in miner economics: Embracing coopetition and infrastructure. The eBook was written by Bryan Daugherty (Global Public Policy Director at BSV Blockchain Association), Gregory Ward (Chief Development Officer at SmartLedger), and Kurt Wuckert Jr (Chief Bitcoin Historian at Coingeek).
Why uncapped block sizes are important
BSV’s commitment to uncapped block sizes directly impacts its users. By providing more space in each block, transaction fees can consistently remain low, ensuring a user-friendly experience regardless of the network’s growth in scale.
Furthermore, the BSV model encourages miners to excel as transaction processors. As block subsidies decrease, the ability to handle a high volume of transactions at consistently low fees can establish a sustainable and profitable business model for miners. This approach aligns the incentives of miners with those of users and businesses, fostering a mutually beneficial environment.
Looking ahead to the future of BSV, if it achieves substantial success, major BSV mining pools may need to merge forces to compete with industry giants like Antpool, F2, and others. Further consolidation among these pools might become necessary to effectively challenge legacy internet service providers such as Comcast, Verizon, and Vodafone as they transition toward becoming “web3 ISP” businesses.
This projection is in line with Satoshi’s vision of nodes consolidating, specialising, and implementing specialised hardware like CPUs, GPUs, and more for node operations at a larger scale.
Download the eBook – The next era in miner economics: Embracing coopetition and infrastructure
Unbounded scaling and low transaction fees
The BSV blockchain stands out as the only public blockchain with the ability for limitless scalability. This capability is evident in its consistent expansion of transaction throughput, driven by regular advancements in the maximum block size. Enlarging these blocks directly translates into a higher number of transactions processed per second, resulting in increased transaction fee rewards for miners.
This distinctive feature sets the BSV blockchain apart from other blockchain protocols that artificially restrict block sizes. As a result, it maintains low transaction fees and swift processing times while simultaneously enhancing miner rewards as the network gains wider adoption. Its robust underlying protocol ensures stability and reliability, facilitating the seamless implementation of such performance enhancements through straightforward adjustments to the maximum block size.
As the BSV blockchain functions as the ‘plumbing’ behind user-facing applications, users need only concern themselves with the applications and services built on top of the network, and they can remain confident that the low transaction fees and fast processing times they have come to rely on will only improve.
