Publication time: August 12, 2020
Source of information: CoinGeek.com
In order to make Bitcoin more attractive to corporate users, TAAL Distributed Information Technology Company (Canadian Stock Exchange Code: TAAL|Frankfurt Stock Exchange Code: 9SQ1|OTCQB Code: OTC: TAALF) has become a Token of Bitcoin SV Technology submitted a second UK patent application. This technology also supports smart contracts, allowing Bitcoin to directly compete with Ethereum and its ERC20 Token standard.
ERC20 is perhaps the most commonly used standard for token creation in the blockchain world today. A similar technology born for Bitcoin (BSV) will allow managers of legitimate Token projects who are willing to migrate to more easily migrate their projects to BSV.
Save data on the chain
This technology will make it feasible to process tokens directly on the blockchain. The Bitcoin blockchain functions like a "universal truth ledger", the only stable protocol for recording, storing and retrieving data. The charging market formed by massive transaction processing is also one of Bitcoin's main economic motives. Users with large transaction volumes will seek separate fee processing with transaction processors, while single transaction fees for occasional transaction users will remain low. Running Token contracts on the chain will definitely bring about an increase in the number of transactions.
When describing iconic projects that can be migrated to BSV, TAAL mentioned the word "legal". The Bitcoin world does not want to see any "ICO boom" driven by ERC20 like 2017-2018. At that time, undocumented crowdfunding and investment fraud reached unprecedented levels, which led to hundreds of poorly conceived or unrealized projects, which ultimately led to user investment failures. We hope to see more legal uses of Token on Bitcoin, such as being a real digital company stock or representing real-world assets such as real estate property rights.
In November 2019, nChain obtained a European patent license covering smart contracts executed on the blockchain. TAAL's statement today mentioned its $1 million, 10-year intellectual property license agreement with nChain, and stated that its operating subsidiaries also signed a patent use agreement with the inventor of Token technology.
TAAL CEO Jerry Chan said:
"We are proud to participate in this process and bring this groundbreaking technology to the market, and look forward to working with our corporate customers and development partners to expand the ecosystem of smart contract technology on the Bitcoin SV platform."
Ethereum's scalability and stability issues
Proof of Work (PoW) is more economically sound than Proof of Stake (PoS), and the process and consequences of the conversion of Ethereum mining from the former to the latter are still uncertain. It is entirely possible for Token issuers to seek to build on a more stable network, and Bitcoin's fixed protocol may be an attractive option.
An important part of the Bitcoin philosophy is that the basic protocol rules should remain unchanged, both now and in the future. This is considered to be the only way for large-scale enterprises and government-level users to generate enough trust in the network so that they can invest resources in the construction of the network. If a small group of developers (such as BTC) can change the basic protocol rules, or its basic economic incentive mechanism will change (such as Ethereum), it will be difficult to build a large, long-term one on top of it , A system that depends on it to operate in a specific way.
Bitcoin's data processing capabilities may be another key factor. Another question on Ethereum is whether it can scale to the level of processing global data. In its short history, the Ethereum network has become congested several times due to the issuance of popular tokens or other smart contract applications that contain large amounts of data.
Letting Bitcoin and Ethereum directly compete is a huge test for both networks, and Bitcoin hopes to prove that only it has the ability to expand. The BSV stress test network has continuously generated 1GB blocks, and the blocks on the main network sometimes can reach up to 360MB.
Currently, more than 400 projects worldwide are built on the Bitcoin SV blockchain. With rock-solid agreements and declining transaction fees, the Bitcoin SV ecosystem has developed rapidly, and we look forward to more unprecedented commercial applications in the future.