Bitcoin SV: The Best Blockchain to Fix Supply Chains

One of the most recent episodes of CoinGeek Conversations provides insightful views between an experienced blockchain developer and an aspiring one—each from a different industry. The former has already revolutionized the seafood supply chain while the latter hopes to bring down transaction costs, achieve transparency and minimize delays in the supply chain. Founder and CEO of Oslo-based enterprise blockchain platform UNISOT Stephan Nilsson and co-founder and CEO of London-based online jewelry platform MarketOrders Sukhi Jutla discuss what is the best blockchain that will work for all types of industries.

Jutla describes her industry as one that is charge of moving high-value raw materials and products, like gold and diamonds, across different countries. This entails going through many middlemen that incurs delays in sending payments, as well as high transaction fees. Furthermore, Jutla relates how the system lacks transparency that they cannot trace fraudulent activities, such as swapping of low-quality products. She hopes to develop a blockchain-based system that is tokenized for payments and has a nano-chip RFID to track the products. Nilsson advised her that an incentivized economic system is more efficient—it can accommodate all her objectives and more.

“We think it’s very important to have this incentivizing system between all the actors in the supply chain to buy and sell information and to subscribe to information. Because the problem with supply chains today is that you only have information one tier up or one tier down. You only have information from your immediate supplier and you give to your immediate customer. You have no idea what happens before your supplier’s supplier and your customer’s customer. But by having this system, I can actually subscribe to information from my supplier’s supplier—if there’s a delay or if they’re changing something and stuff like that—so that I can get that information beforehand,” Nilsson explained.

Jutla immediately agreed that this kind of system will benefit her company as they will have access to relevant supplier and customer information. When asked on which blockchain she is hoping to build her platform on, she answered “Ethereum because many people use it.” 

“There is a huge community in Ethereum, there are a lot of solutions out there. But none of them are in production. No one has actually been able to actually run this in production using all the functionality of the Ethereum blockchain because it’s simply not scaling. You can do like 10-15 transactions per second, and it doesn’t work for one company even. So the problem in Ethereum is that every company that is using it now is building second and third tier solutions on top of that to try to mitigate that it doesn’t scale,” Nilsson said.

Jutla looked a bit taken aback as she did not expect for Nilsson to completely destroy her image of Ethereum. Because Ethereum’s blockchain is not scalable, businesses that decide to build on it because it is a popular choice for many suffer technical limitations and numerous technical upgrades when transaction volume becomes too high for the blockchain to handle, not to mention the extremely high transaction fees. This only causes disruptions in business operations. 

Bitcoin SV (BSV) is currently the only blockchain in production that has unbounded scalability and a stable protocol that will last forever. UNISOT and more than 400 businesses have already developed or are in the process of building platforms on the Bitcoin SV blockchain. 

“So even if our organization dies in 20 years or 50 years, the protocol will still continue living because it has its own internal economic incentive for anybody to keep running it to make money, in a hundred years, in 200 years. No other system has that,” Nilsson recommended. 

At the end of the episode, Jutla agrees to read more about Bitcoin SV and rethink her choice of blockchain technology.