Explaining the move to Bitcoin SV

We Are Gamers

Kronoverse has a vision of a metaverse; a world of interconnected gamers and developers that can build anything we set our sights on. In order to do this, we need to be on the correct platform for the long term. We must make difficult decisions that are best for the future of the gaming community that extends to people who just want to play video games. We are not here to shorthand anyone, especially our fans from the beginning. We are doing our best to make this transition and understand why some people may be frustrated. We understand cryptocurrency volatility and the nuance of an emerging space so we are not abandoning our fans and gamers. We want you to come with us. It is all about balance, cooperation, and transparency. 

Think of common in-game items in your favorite video game: Call of Duty loot boxes, Overwatch loot boxes, Valorant skins, and World of Warcraft mounts. By purchasing these items you are not an investor; you are a gamer buying an item that makes gaming more fun. Did you spend money on these loot boxes, skins, and mounts? Yes. If any of these companies go out of business or shut their servers off will you be reimbursed for your in-game items? Most likely not. These items are meant for fun, to enhance your gameplay experience; not an investment vehicle to guarantee you monthly earnings. With all that being said, Kronoverse will be offering smart contract swaps in the future to allow a full ENJ token refund and exchange of your Enjin-based prerelease items for the equivalent token on Bitcoin SV.

To further clarify, being an investor legally means you are purchasing and investing in securities. The SEC has come out and said Ethereum is not a security, thus the definition of “investor” is invalid in the eyes of the SEC. Here is the definition of “invest” from the legal dictionary:

“v. to put money into a business or buy property or securities for the purpose of eventually obtaining a profit. This is distinguished from a gift or a loan made merely to accommodate a friend or taking a complete gamble.”

Scams are prevalent in the cryptocurrency industry with many Ethereum tokens, copycat blockchain technologies, high interest yielding coins, and flat-out Ponzi schemes. As an individual in an emerging space, you must realize you are not protected under SEC guidelines by purchasing Ethereum or Bitcoin. If anyone ever offers you the promise of making a large amount of money or interest in a short amount of time this is a red flag. We want platforms like Ethereum and Bitcoin SV to operate legally, but we also don’t want development and design to be stifled by overbearing regulation, so it is up to us to make sure we pave a transparent path forward.

Our Journey Through Development

Early on many of our developers realized Ethereum offered too limited of a base layer protocol that would allow CryptoFights and the Kronoverse metaverse to flourish in the way we had originally envisioned. After nearly a year of research and development, CryptoFights had a prototype running on Ethereum which combined aspects of IPFS, A Loom-network sidechain, Enjin based tokens, and token swaps on Ethereum. Yet this was not enough for us to get a fully operable product that we were happy with. Our developers continued to research and develop high-level consensus mechanics, and as we dove deeper we realized that solving 75% of our development issues had created another 25% of brand new issues that required yet another solution. The end result became complexity built upon complexity that brought about increasing concerns about stability, scalability, and interoperability between complex layers reliant on others. Throughout this whole process we have learned more about crypto and blockchain than ever thought imaginable, yet we have to keep moving, progressing, and building our business’ vision.

As we began working with Bitcoin SV, many of the complex issues we were solving simply disappeared overnight. Bitcoin SV offered an increased level of stability, security, scalability, microtransactions, and fast zero-confirmation transactions; all on one base layer protocol. We no longer needed to rely on other third parties to deliver complex multilayer solutions, and honestly we could not keep waiting. Instead of attempting to integrate a multitude of ever-increasingly fragile consensus mechanisms, we could do everything in one Bitcoin SV transaction: authentication, addressing, sequencing, value, data transfer, and ownership; all in one atomic unit. This compact package directly aligns with our vision to create a gaming metaverse that creates an interoperable world. 

This Is A Movement

Kronoverse has a vision of creating an interoperable gaming world that can utilize and share objects between different games on Bitcoin SV. To put this in perspective, imagine you are racing in a game like Gran Turismo, while people are flying above you in a helicopter, in say Grand Theft Auto. As a driver on the ground level you look up and see your friend flying a helicopter over the city as you make your final turn on the race track. Not only can you become immersed in the same world amongst different games, but you could also upgrade your car that then transforms into an airplane, allowing you to essentially transport between games as you lift off the road into the air. The limitations of traditional gaming just became seamless, integrated, and profound.

Another cool angle of the Kronoverse universe is minting items that can be used across various games on Bitcoin SV; think multi-game quests. For example, we could mint a wooden sword that is interoperable between various RPGs like Minecraft, Final Fantasy, and CryptoFights. In order to upgrade your weak Wooden Sword to a Steel Sword, you defeat 50 monsters in Minecraft. After that, the same Steel Sword is used in CryptoFights where you win 100 battles, unlocking a Fiery Steel Sword. But that isn’t enough, you want the Legendary Blood Siphoning Sword that requires you using the sword in Final Fantasy and defeating 5 end game raid bosses.

These are just some of the examples from a modern day gaming perspective that we can use to help illustrate the vision of Kronoverse and CryptoFights. There are so many new emerging opportunities to offer interchangeable characters, arenas, levels, items, mounts, etc that we can all share and be excited about as both gamers and developers. But in order to do this, we need other game developers to move to Bitcoin SV with us. We truly hope other developers will make the transition to Bitcoin SV and build the future on one concrete, global, stable chain. The future is too exciting to deny ourselves the future of an interoperable gaming world. You may have your doubts about Bitcoin SV, and we understand, so take a moment to keep learning with us.

The Bitcoin Vision

The existing Visa credit card network processes about 15 million Internet purchases per day worldwide. Bitcoin can already scale much larger than that with existing hardware for a fraction of the cost. It never really hits a scale ceiling.” – Satoshi Nakamoto (April 2009)

Bitcoin was designed as a global peer-to-peer electronic cash system. The true mission of Bitcoin SV is to design a platform, a stable protocol base layer, that doesn’t change. With a stable protocol, developers can build applications on top that allow freedom, creativity, and information cash transfer encapsulated in a time-stamped message on a global ledger.

Kronoverse chose Bitcoin SV because in the end scaling is all that matters. It is impossible to have microtransactions on Bitcoin Core (BTC) thus Bitcoin Cash (BCH) and then subsequently Bitcoin SV (BSV) were forked from the original protocol. Moving away from Bitcoin Core to an alternative platform like Bitcoin Cash or Bitcoin SV made sense, but what exactly happened that caused yet another split? Well, to make a long story short a fork occurred between BCH and BSV in November of 2018 related to the direction of protocol development that caused divergence amongst developers. After the dust settled, many of the original Bitcoin visionaries moved from Bitcoin Cash to Bitcoin SV. Where does that leave development on Ethereum?

A helpful visualization of Bitcoin and its forks from the original protocol.

Ethereum offered an interesting prospect and opportunity to build on while all of this was happening, but ultimately after years of research and development, Ethereum creates more problems than it solves. With an ever-changing protocol, it is near impossible for developers to keep up and actually build something stable for the world to use on a massive scale. A constantly changing base layer protocol does not offer the level of security an enterprise is looking for to roll out massive, fast transaction processing.

The current implementation of Ethereum faces similar problems BTC faces with regards to transaction processing, but albeit in a different manner. While Ethereum definitely processes transactions much faster and cheaper than Bitcoin Core (BTC), the transactions are executed serially instead of in parallel which in turn creates an escalation in gas prices. The end result requires increasing gas costs to essentially skip the line to get your transaction processed the fastest; or build additional layers of complexity on top of Ethereum. In order to create a fluid gaming experience and to ensure stability, security, and scalability we need microtransactions.

The key to being able to support microtransactions with millions of transactions per second (TPS) is low fees and instant, 0-confirmation processing. Imagine a scenario where I want to repair my armor in-game, but I am out of in-game currency; I could simply pay ⅕ of a cent out of my Bitcoin SV wallet to make the repair. Yet, I would never make this purchase if the transaction fee was 5 cents or even 1 cent, nor would I wait 3 minutes for the transaction to process. Blockchain should enable gamers, not inhibit them. We want that repair to be instant and fast.

Not only can Kronoverse and CryptoFights utilize fast, instant microtransactions, we can also start to examine the backend of games developed on the Bitcoin SV network. This only really starts to become possible if we are all on the same, stable base layer protocol. The neat thing about blockchain technology is the ability to record game event history from the backend permanently to an immutable ledger that will always be there.

This aligns perfectly with the Kronoverse and CryptoFights vision of providing a transparent system where the usual proprietary backend of game development can be brought to light. Imagine a scenario where you are in an esports competition involving FPS mechanics; the game devs know of a game imbalance issue with certain weapons, but most of the community has no idea. This creates unfair advantages that can inhibit true fairness and competition in a gaming environment. We can use Bitcoin SV as a rule-keeper, with the ability to have a window of transparency into what exactly is happening on the backend of new games. This is just yet another revolutionary example of what Bitcoin SV can provide to the world of esports gaming. By providing transparency we can reduce fraud within the esports gaming community and create an environment that encourages honesty, hard work, trust, freedom, fairness, and most importantly fun. This sounds like a lot of information that has to be stored on the blockchain, and it certainly is. Luckily, Bitcoin SV has been working year round to bring us more scaling and bigger blocks to help us achieve our vision of a transparent, interoperable gaming world. Let’s take a closer look.

Big Blocks, Bigger Transactions

The key to Bitcoin SV scaling is packing in as many small transactions as possible into big blocks. More transactions in a block produce greater miner payouts, resulting in more economic incentives to keep pushing forward and scaling the network with larger block sizes. Bitcoin has been designed from the beginning to transition away from miner block rewards to begin relying primarily on transaction fees. The miner block reward started at 50 Bitcoin per block mined, then halved to 25 Bitcoin per block mined, followed by 12.5 Bitcoin per block mined, and now has recently reached 6.25 Bitcoin per block mined. This trend will continue every four years. The miner block reward was designed as a bootstrap to kick start the incentivization of the network, with the intention of moving to a transaction incentivization Proof of Work system later on. The real killer feature of Bitcoin SV is microtransactions, something Bitcoin Core (BTC) cannot offer.

The cost of a transaction on BTC fluctuates constantly, but at the time of this writing is currently 20,000x more expensive when compared with BSV.

Here is an example of a 300mb block on Bitcoin SV that has over 1 million transactions. The miner collects the block reward of 6.25 BSV and the ~0.79 BSV in transaction fees.

Overall, the price of BSV needs to be much higher, and blocks need to be much larger for the Bitcoin SV network to be profitable in the future. Bitcoin SV will be scaling to 1TB+ block sizes.

While it is easy to talk about the shortcomings of Bitcoin Core (BTC), it is important to realize it has proven one thing very well. Bitcoin Core (BTC) has shown Proof of Work (PoW) can stand the test of time. It has taught us a lot about Bitcoin’s true nature. While it may have taken a wrong turn later down the road, it has shown us that the network is resilient to change, robust, and secure. Now we are confronted with a new opportunity to build it again, bigger and better than before with Bitcoin SV.

Proof of Work relies on economically tested theories and models that maintain a price equilibrium balanced equally with transaction fees and block rewards. The reward subsidies cannot be changed on a whim further enhancing the security and stability of the base layer protocol. In Bitcoin’s PoW model, there was no unfair advantage regarding any premining of the token. The network was bootstrapped with mining block rewards that would halve every four years to incentivize growth, a more controlled distribution model that throttles growth to the point where it eventually levels off.

The hefty miner block reward that so many people talk about was never meant to be the end goal solution to fuel the network. And it was not the high fee, slow transactions that Bitcoin Core (BTC) has pushed. We want to be targeting the low transaction fee scenario, because this is where people will use the network heavily. Bitcoin has shown that PoW offers security and security with a ten year track record. As we enter a post-halving world in 2020, Bitcoin SV has become the only solution going forward. 

A Closer Look at Proof of Stake

Ethereum was created in part because Bitcoin Core (BTC) became corrupted notably with small block sizes and high fees, so naturally developers yearned for a new platform to build amazing decentralized applications on top of. Truthfully, the platform did show interesting promise as it was a developer’s playground of sorts, especially with juggernauts like the Ethereum Enterprise Alliance backing it. Fast forward four years later and many are still waiting for the global computer to deliver what was expected. Many are skeptical Proof of Stake (PoS) will be feasible and healthy for the future of the network. And others have doubts about pre-mines and initial coin offerings (ICOs) in general. While PoS seems like a cool idea on paper, we can look at a similar live implementation running on EOS utilizing Delegated Proof of Stake (DPoS) to see some of the issues that arise with regards to governance, network robustness, and coin distribution, and voter manipulation. EOS DPoS is a more nuanced flavor of PoS, but is still a great comparison point as EOS, with a yearlong ICO, raised $4.1 billion and distributed one billion EOS tokens.

In the EOS DPoS system, instead of mining you produce blocks every two minutes based off of the top 21 block producers. The top 21 block producers are decided by who has the most votes from the community. Rewards of 1% are then delivered out based on these top block producers, which in turn are expected, theoretically, to be reinvested back into the chain. The logic here is if you get paid and voted for to be a top block producer you will input value back into the EOS community. While a good idea in theory, the real problem started with exchanges and large holders of EOS manipulating voting by being able to vote themselves in as top block producers. The delicate balance of the 21 delegates could be easily swayed by misappropriated votes.

Think of depositing money in a savings account, and then your bank goes out and uses your money while pretending it is still there. This started to occur, though is rather hard to prove since exchanges maintained enough liquidity to allow users to withdraw EOS as necessary. Other issues that weren’t as prevalent at first started to emerge as well such as low quality software updates that stopped going through rigorous network testing. People and users simply stopped caring. EOS Network issues have been ever increasing and can be seen from a recent announcement by Coinbase on degraded network performance on EOS.

Here we can see the Top 7 EOS block producers include two exchanges, Huobi and Bitfinex.

Not only did Delegated Proof of Stake run into issues in its governance, it is also important to note EOS was a premine just as ETH, both with no hard cap on total supply (inflation). A common theme we have seen with initial coin offerings (ICOs), also referred to as pre-mined tokens, is that they have a negative effect on the long term price and healthy distribution of coins amongst users down the line. When the Ethereum Initial Coin Offering (ICO) launched, 72 million coins were minted, which account for nearly 65% of the total circulating supply as of today. A common theme we have seen with ICO’s is that they have a negative effect on the long term price and stability of the network. There is no hard cap on the maximum amount of ETH that can be mined, and as Proof of Stake gets rolled out that number will continue to grow exponentially. 

Ethereum premine starting at ~72 million ETH, now reaching towards ~111 million.

Premines are problematic for the healthy growth of the ecosystem and allow the founders and initial investors a much greater head start than the rest of the community as it grows in popularity. Thus, models like PoS and DPoS further push this agenda to keep the original investors in control and in power. Proof of Stake may not be superior to Proof of Work in terms of providing a secure, scalable, and secure network, but what are the impacts of energy pollution?

Energy Scaling And Miners

Supporters of Proof of Stake will argue it is good for the environment, and that Proof of Work is detrimental to the environment. While this is true to an extent in its current form, the mining environment will drastically change in the near future as more miners consolidate into specialized data centers that can utilize energy more efficiently; this will in effect push electricity costs near zero. Just as any industry that develops into something greater, Bitcoin mining will become a trillion-dollar industry that incentivizes enterprises to invest in cleaner energy solutions. Bitcoin may very well end up being one of the best inventions in human history that catapults our world towards cleaner energy solutions quicker than anything before. It is also important to note the comparison between Bitcoin mining and the type of energy used.

The problem isn’t how much energy Bitcoin consumes necessarily, it is how that energy consumed is produced. China is one of the largest current miners of the Bitcoin BTC network, and much of their electricity is generated from coal. Coal is extremely dirty and affects the environment the worst, yet over 50% of China’s energy is produced from coal. This means that roughly 50% of the Bitcoin BTC network is being mined in China, thus we can assume that at least 50% of that energy comes from coal.

Here we can see China produces nearly half of the Carbon footprint from mining Bitcoin BTC.

Our focus should not be on utilizing energy, it should be on how that energy is produced. We all need energy to survive so we need to move away from the argument to cut back on energy, and move towards an answer that solves our energy pollution problems altogether. Together we can heal the Earth, create clean energy solutions, and enjoy technologies that improve our lives. We all live here, we are all connected, and we all deserve a clean planet, for us and our children.

The world has much bigger contributors to energy consumption that are toxic, and bring about much more pain than Bitcoin. Bitcoin was designed from its conception to eventually become highly concentrated in server farms that specialize in mining and transaction processing that ensure a competitive network that scales and is secure. This does not mean we want to ignore our environment, just the opposite in fact. Together we can come up with energy solutions that help the world grow and prosper, but to inhibit technology for the wrong reasons is unwise.

The Bitcoin SV mining network will become an increasingly competitive industry rivaling the likes of AWS and transaction throughput of Visa that will grow into the trillions of dollars.

It is also important to look at the numbers of human caused CO2 emission. According to the Bitcoin Energy Consumption Index, Bitcoin BTC currently has an annual carbon footprint of 27.68 Mt CO2. Now we can compare this to the airline industry which has an annual carbon footprint of 915 Mt CO2 equating to about 2% of all human CO2 emissions, while road transport accounts for nearly 74% of all CO2 emissions. Globally, humans produce 43 billion tonnes of CO2 according to the Air Transport Action Group. When comparing all of the data, current mining CO2 emissions from Bitcoin BTC account for ~0.02% of the world’s CO2 emissions.

Global, Airline, and Transportation CO2 emissions from the Air Transport Action Group.

Another interesting comparison point lies in the argument between Bitcoin and Visa scaling. We must remember that the original Bitcoin vision means scaling beyond the current capabilities of the Visa network in transactions per second (TPS). Thus the comparison between Bitcoin Core (BTC) and Visa in its current state is worth examining to understand the end goal of Bitcoin SV.

Since Bitcoin Core (BTC) is crippled with small blocks and high fees, the number of transactions that can fit in a block becomes severely limited. A limited block size in turn raises the number of blocks required to process Bitcoin transactions. Now imagine on Bitcoin SV where we have and will continue to have an ever increasing block size: 1Gb, 100Gb, and 1Tb+ blocks. Such large blocks will offer the ability to pack millions, and eventually billions/trillions of transactions into a single large block, bringing the comparison between Bitcoin and Visa much closer in terms of energy per transaction. The end result will be a Bitcoin SV network that can handle a much higher throughput than Visa and Mastercard combined, all the while running energy efficient.

As the Bitcoin SV block size continues to increase, the energy footprint will decrease.

Looking Back To Look Forward

We are all gamers like you. We love video games and want to share awesome creations with the entire community. Kronoverse and CryptoFights had to make difficult development decisions along the way, but we always had what is best for our community in mind. Bitcoin was created with a vision in 2010, and we believe Bitcoin SV is carrying out that vision in the best way possible with massive blocks and scalable microtransactions. Proof of Stake offers interesting solutions, but we believe Proof of Work is the future for a sustainable, global, payment network. In the end, it is up to us to create a world worth living in that we can all be proud of. Some questions we all need to ask ourselves:

  • Why did I get into cryptocurrency to begin with?
  • How can I build something my children will be proud of?
  • What platform will be around in twenty years? Fifty years? 
  • What platform will be able to support trillions of microtransactions?

This leaves us at a critical turning point for our world, our children, and the safety of mankind as a whole. It is so much bigger than getting rich with Bitcoin or Ethereum. This is about healing our world. We are all much stronger when we band together under the bands of honor, respect, integrity, willpower, discernment, wisdom, positivity, hope, and faith. It is all about growth and becoming who we are. Together we can move forward and we want you to join us on Bitcoin SV. It is our duty to stand up for what is right, and announce our decision in the best way possible; truth and honesty. Hopefully, looking back on all of the Bitcoin forks, Ethereum tokens, and sidechains, we can laugh at ourselves for how little we knew, but remember how we all started with a vision. That vision has ultimately led us to Bitcoin SV: The Future of Cryptocurrency. We are all in this together.