How to scale has always been a point of contention between blockchain providers. Although scaling in itself is recognized as a necessity to meet the increasing demands of the digital market, popular blockchains insist on developing send- to third-layer solutions instead of focusing on scaling the base layer.
However, the perfect solution already lies in having a scalable base layer–the blockchain. There would be no need for costly alternatives that do not work. Proof of this is that until now, the BTC and ETH blockchains are still unscalable, being plagued by network congestion that leads to latency, skyrocketing transaction fees and failed transactions.
These are not only an inconvenience to users, but also cost them a hefty amount as failed transactions are usually non-refundable. With this kind of inefficient and expensive blockchains—ETH’s average fee per transaction stands at $10.68—it would not be practical to build applications on them, no matter how popular they are.
The whole point of scaling a blockchain is to increase its utility for individuals and businesses across industries. Expensive fees and network issues defeat that purpose. And this is why BSV has restored the original Bitcoin protocol in February 2020. By doing so, the BSV Blockchain has unlocked its capability for limitless scaling.
And Phuong Dinh, Chief Strategy and Purpose Officer of social media marketplace Mijem Inc., likens this scalable blockchain to correlation marketing during a panel at the recently held BSV Global Blockchain Convention in Dubai last May.
“The way I see blockchain and specifically BSV, as it grows in utility, the ecosystem grows. It’s kind of like a correlation marketing program where once you own BSV, there’s more utility for it. It’s not only a financial token that you could have, but you can also use it for other applications like micropayments or there are games that are on the BSV chain or there are services like reviews like Britevue,” Dinh said.
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Correlation marketing shows the relationship between two or more variables—whether they have a strong or weak relationship can determine what actions should be taken in order to create more effective tools, strategies or campaigns.
“That’s a reason why we’re actively not only providing our users BSV as a loyalty reward, but we’re looking to help expand the ecosystem because it’s very efficient when it comes to micropayments and a lot of other blockchain-related applications,” Dinh added.
At present, BSV miners are already completing 4GB data blocks at a throughput of 50,000 to 100,000 transactions per second (tps) with fees that range from 1/20 to 1/100 of a cent. Because of BSV’s ability to scale continuously, it not only constantly increases its data blocks and throughput, but also reduces transaction fees to the lowest possible amount. This makes it practical to use within the marketing industry, and specifically with loyalty programs.
“I think that with today’s modern consumers where people are pivoting more towards ESG, making sure that… they’re consuming legit drugs or want to know that a certain luxury good they’re consuming is valid or whatever, this is where blockchain provides that public ledger where records can be on a chain. But we need a chain that’s very cheap to do that functionality,” Dinh explained.
The combination of efficiency and practicality equates to powerful abilities that make the BSV Blockchain useful for businesses. With increasing utility being the end goal of innovating any kind of technology, it can be said that BSV has made the right choice in restoring the original Bitcoin protocol in order to scale its blockchain.