Refining data to information with BSV blockchain: How Bitcoin adds context

The BSV Blockchain is a data management tool utilizing a built-in informational commodity. By this, Bitcoin as an economic system turns data into information—but not in the way you think it does.

Data and information are not the same

In the context of information technology and data management, the difference between data and information could be summarized as follows:

1. Data are raw, unprocessed facts and figures. For example, numbers, dates, and strings of text in their “untouched” form are considered data.
2. Information is data that has been processed and organized in a way that adds context and meaning. It involves the interpretation, structuring, or presentation of data.

Concerning the BSV blockchain, the process of inputting data is particularly intriguing. The BSV blockchain serves as a platform where raw data can be inputted at low cost, and through its unique environment—having utilized the BSV token as an informational commodity—this data undergoes a process of refinement.

By putting data onto the BSV blockchain, we add context

For example, the input data gets a timestamp, comes with a Bitcoin address that shows the data’s origin and is available via publishing of the blocks. By this alone, the data on the BSV blockchain naturally gains context and structure, becoming more useful and understandable information.

But this is not what I am referring to. It is not only the time stamping, the public addresses, or the availability of block content that add the context. Since Bitcoin is a token exchange system with a capped supply and a market that enables token trade, the token exchange always has a monetary dimension.

There is nothing special about refining data to information by using a software solution. However, adding a monetary dimension to data that had no monetary dimension before is unique.

Bitcoin bundles data into an economic environment

This dimension is not about the value of the Bitcoin token being transacted. It is about how the act of transacting—of using Bitcoin as an informational commodity —adds meaning to the data. The monetary aspect of Bitcoin transactions gives the data an additional context, essentially enriching the raw data as it becomes a part of the economic system of the blockchain.

In other words, data processed on the BSV blockchain turns into information—automatically. Plus, it is being valued at the same time. If we want to exaggerate, we could say that BSV blockchain is not a data management tool but an information management tool. There is no raw data on the BSV blockchain; it is all information already as soon as the data is being processed on it.

Beautiful, and only possible thanks to low-cost transactions

Keep in mind that microtransactions are important because of the atomic microvaluations
that come with them. That is why I am referring to the BSV blockchain and not to other blockchain projects, as other blockchain projects seem to underestimate the importance of being able to transact at ultra-low cost.

The transaction fees on BTC or Ethereum are way too high for the “blockchain refinery” to function as intended:

Refining digital data to information and the valuation thereof must run at ultra-low cost. By this, the refinement is not a costly extra service—it is a built-in feature of the original Bitcoin that strenuously works for all of us while we sleep peacefully.

Watch: Decentralization is pushing data to the edges