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Navigating the BSV blockchain ecosystem: The confluence of hash power and infrastructure

Navigating the BSV blockchain ecosystem: The confluence of hash power and infrastructure

Satoshi Nakamoto's initial vision was a decentralised system where the "longest chain" or "heaviest chain" protocol holds dominance.

Until the release of BSV blockchain’s Teranode software, limitations associated with SVnode represent a significant bottleneck in the system. Although tools like MAPI, ARC, and JungleBus are high-performing in the crypto world, issues with the node itself tend to obstruct performance. For instance, in the broader context of big computing, 24GB per hour might not be as impressive.

Navigating this confluence of hash power and infrastructure 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 Association), Gregory Ward ( Chief Development Officer at SmartLedger), and Kurt Wuckert Jr. (Chief Bitcoin Historian at Coingeek).

Following the original Bitcoin white paper

The ebook notes that the BSV blockchain adheres to the core principles of the original Bitcoin white paper, urging miners to expand not only their computational capabilities but also their infrastructure and connectivity. Satoshi Nakamoto’s initial vision, as articulated in the white paper, envisioned a decentralised system where the “longest chain” or “heaviest chain” protocol holds dominance.

In this context, where there exists a clear interplay of competition and collaboration among nodes, entities like Taal, Quadlink, and GorillaPool ideally should establish dedicated communication lines.

This ensures that block announcements between honest nodes take precedence over those from external competitors. This becomes especially critical if a more defined fiduciary relationship with the protocol becomes standard practice, and the presence of rogue hash power is seen as detrimental to the overall health of Bitcoin.

Emphasising the significance of infrastructure development and miner connectivity cannot be overstated. The rapid dissemination of newly discovered blocks relies on robust infrastructure and strong miner connectivity. Any delays in block propagation carry the risk of orphaned blocks, potentially leading to the loss of rewards.

How Teranode enables unbounded scaling

The BSV Association technical team is currently hard at work on Teranode – Bitcoin node software which has the ultimate goal of creating unbounded scaling. However, the new software offers so much more than just bigger numbers.

Teranode is the BSV blockchain’s solution to the challenges of vertical scaling by instead spreading the workload across multiple machines and employing SPV (section 8 of the Bitcoin white paper). This horizontal scaling approach enables network capacity to grow with increasing demand through the addition of cluster nodes, allowing for Bitcoin scaling to be truly unbounded.

Teranode is meant for nodes catering to transaction processing of large volumes from users. When enterprises or governments start using the blockchain network for various use cases, they might choose to either contract with nodes or run their node. These volume-hungry audiences are the customers of the Teranode initiative.

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