The BSV blockchain is the only UTXO-based blockchain that has 1 satoshi transaction fee so long as the transaction size is less than 1 kilobyte, which is 1/30,000th of $0.01 as of writing. With fees becoming so absurdly cheap comes massive opportunities for creative entrepreneurs to capitalize on.
Pay for users’ transaction fees
The first obvious use case is to wholly fund all user’s transaction fees. This frankly should be a base requirement of all interactions of any application on the BSV blockchain, given the great benefits. Onboarding is now a solved problem as there is no requirement for the customer to first acquire satoshis before beginning to use the application.
If the service does indeed charge fees for some premium services, then they can take 99.9% of the cut of the service fee as profit, as their cost is only 1 satoshi. For enterprise and data applications, this applies even more so:
There is certainly manipulation.
Regarding ‘garbage data’ I can only speak for Rekord, but the project we ran on Tuesday was a PoC for a client which was charged at >$100k cash. We went through about 50 BSV over 24hrs. The PoC was >90% gross profit for us. This will turn into a…
— James Marchant (@JamesRMarchant) August 10, 2023
On the day BSV blockchain did over 125 million transactions, the Rekord IoT transactions had the old 0.05 satoshi per byte fee rate. Had these been 1 satoshi, the profit earned from conducting the stress test for the client would have been ~$100,000, less 1.25 BSV (~$40) instead of 50 BSV, less time and materials cost.
Issue users a free token upon sign-up
Imagine signing up for an application and immediately receiving a commemorative token or fungible token upon logging in. The customer acquisition cost of such efforts costs an additional satoshi to embed the token, bringing the grand total to 2 satoshis. This token could have a tiered issuance, where the first X customers determine the rarity to sign up.
The most exclusive NFTs (rarest) are issued to the first 10, then next tiered rarity to the next 100, and so on. This model would incentivize users to sign up and is worth it because of the low cost. The best benefit is the user is now onboarded into the on-chain economy and truly owns an asset.
Fund users’ interactions on-chain
This point differs from the first idea in that now, the application completely funds the user’s interactions on the blockchain. For example, a social media application can make posting free while at the same time having the user own the post as a token (text inscription for example).
If the social graph is also put on-chain, all that can be paid for as well. We have already seen Twitter founder Jack Dorsey’s first tweet be speculated upon as an NFT. This can be done repeatedly on BSV blockchain, with any file type, images, audio, video, etc., which leads to the fourth idea.
Reasonably upload audio and video on-chain
One of the BSV communities’ first fascinations after the split from BCH was putting big data on-chain. The issue was, of course, the cost was too prohibitive, and the node software limitations forced hacks of doing so, such as the BCAT protocol. 1 satoshi cost per kilobyte is a big step in pushing that reality forward where shorter video or compressed audio can reasonably be put on-chain, in a single transaction. 1 MB costs 1,000 satoshis which is still 1/30th of a penny.
While applications would not want to fund these for their users, they are likely innately fine with funding these types of transactions themselves based on principle alone (immutable timestamping and data storage). The application can leverage idea #2 and take a larger service fee since the fees themselves are so cheap.
1 satoshi fees should be viewed with a glass-half-full perspective in terms of the opportunities that manifest. Bitcoin is for everything, and if we truly believe that, if we can onboard the entire world’s creativity, 1 satoshi per kilobyte fees will quickly seem too expensive.
Watch Joshua Henslee: Every significant metric is positive for BSV
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