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, as explained by Jake Jones (Head of Network Infrastructure at the BSV Blockchain Association) at the recent London Blockchain Conference.
Jones began his presentation by noting that Bitcoin, as envisioned by its creator, is poised to become the foundational infrastructure for Web3 services. Operating as an ‘edge-to-edge electronic value system,’ it promises to address various inefficiencies and hurdles encountered by streaming services, Central Bank Digital Currencies (CBDCs), and data privacy.
Nevertheless, for this grand vision to materialise with all these transactions accommodated on a single blockchain, scalability is an imperative requirement.
An answer to the challenges of vertical scaling
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.
Improving options and interoperability
Drawing parallels to the popularity of streaming but also consumer frustrations with having to subscribe to multiple platforms, Jones asked the audience, ‘What if streaming services were using blockchain?
‘Currently, 80% of all Internet traffic consists of video streaming. A world in which unbounded scaling-enabled blockchain technology is utilised for streaming would allow consumers to only pay for the specific shows or movies they want, rather than having to subscribe to multiple platforms.’
Jones added that interoperability is one of the many benefits that result from unbounded scaling, which would allow a frictionless exchange between digital versions of currencies like the pound, yen and dollar.
The challenges with the current Internet infrastructure
Jones also discussed the challenges of the current Internet infrastructure. Specifically casting a light on the practices of large services like Amazon Web Services or Google, which store volumes of personal data, and thus are subject to cyber attacks (e.g. Equifax). With unbounded scaling, the BSV blockchain model would disincentive hackers from even attempting to steal one’s information.
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