Observation | A thorough understanding of BTC’s “three generations” in one article

As the representative of blockchain technology, BTC provides the first decentralized application scenario and imagination space for the development of the blockchain industry. However, due to its status as an ancestor and its scalability, it cannot have relatively complete on-chain development and community governance functions like its "newcomers" such as ETH and EOS.

The picture comes from the Internet

This is the reason why miners, developers and users cannot reach an agreement:

The picture comes from OKEx Investment Research

The purpose of BTC is to enable every home computer to run a BTC full node, making BTC truly and thoroughly "decentralized" so that BTC can realize peer-to-peer payment functions under completely fair and secure conditions.

However, BCH believes that BTC is obviously unable to undertake the mission of "peer-to-peer electronic cash" due to its small block capacity (1M) and network congestion problems. Although it uses isolated verification and lightning network to alleviate the load problem on the main chain, it is still a drop in the bucket.

Block expansion may be the best solution to this problem at present. Increasing the original block size from 1M to 8M will not only enable fast payment of PoW currencies, but also relatively reduce transfer fees.

Although BSV "originated" from BCH, it seems to have chosen a completely different development path from its "parents". What it wants to do is to create a global ledger (Metanet), rather than electronic cash or gold. The ultimate goal is to use the current Internet as a side chain to form a value network for "transmission + storage" of data, which cannot be tampered with. In simple terms, it is BTC+ETH+IPFS, the rhythm of "all chains returning to one".

BSV's development route is mainly aimed at the B-end market, and it wants to create a usable blockchain that can truly attract large companies and government agencies. Based on this, BSV is also the project currency with the most patented technologies in the blockchain world.

In the BSV world, BTC is the wheel, and BSV's global ledger is the car. BTC is only the universal currency on the BSV global ledger, with the purpose of providing fuel, maintaining the security of this immutable ledger, and providing economic incentives. After all, if you want to build a car, you must first build the wheels before you can build the frame.

After the BCH and BSV halvings, since the coin prices did not rise as expected, based on the current mining difficulty, BCH and BSV miners will switch their computing power to BTC mining to obtain more profits, which will also cause a large loss of BCH and BSV computing power. For example, on the day of the BCH halving, its computing power loss was as high as 25%.

However, it is worth noting that the fluctuation of currency prices can change the direction of computing power flow. If the prices of BCH and BSV enter an upward channel in the later stage, the lost computing power will most likely flow back until BTC is halved, and the three will reach a new dynamic balance of computing power, mining costs and benefits.