Bytecoin and its BCN coin: A starter’s guide
Bytecoin is a decentralized cryptocurrency with a sole focus on financial privacy. It is an open project in which developers world over can participate in the development of its network. The Bytecoin network also allows instantaneous global transactions on its network.
What is Bytecoin?
Bytecoin is the native digital currency that can be used on the Bytecoin network. The Bytecoin network provides a platform for private, untraceable, instantaneous, and affordable fees. The bytecoin network works on the internet, and therefore, is not limited to any country or geographical territory.
Bytecoin is a lot like other altcoins – an upgrade of Bitcoin. Unlike the Bitcoin network which is not truly anonymous, Bytecoin was designed to address the anonymity issue. In short, Bytecoin is like Bitcoin but with a completely private address.
As of this writing, the current market price for the digital currency is $0.004988 with a market capitalization of $917,073,579.
The developers of Bytecoin have been tight-lipped about some aspects of their project. The little information available about the coin suggests that it was launched on July 4, 2012, with little information about its release.
Bytecoin is not as popular as Bitcoin. However, it is a truly private currency. It has been forked several times. One of most well-known forks in Monero. It has had several ups and downs but no major drop. It may be an indication that the coin may be viable in the long term.
How Bytecoin works
Bytecoin’s aim is to facilitate anonymous financial transactions. Its blockchain utilizes the ring signature technology. This technology minces and chops data along the way so that it becomes completely untraceable.
Let’s suppose that person A wants to send money to person B. The money does not travel from person A’s wallet straight to person B. It is re-routed through several servers. The transaction trail gets mixed up and becomes difficult to pinpoint the parties involved in the transaction. Also, it is impossible to find out how currency much was involved in each transaction.
The Bytecoin network works in fashion and speed similar to that of the internet. A transaction can be completed in as little as two minutes.
Bytecoin employs the improved and modified Egalitarian Proof-of-Work algorithm. Bitcoin uses the SHA-256 proof-of-work (PoW) algorithm that supports powerful mining equipment. This only favors big corporations that afford to set up such expensive machines. In a way, this centralizes mining. Bytecoin uses the Egalitarian PoW algorithm that allows miners with CPUs and GPUs to mine the currency. This eliminates mining centralization.
Bytecoin use and utilities
Bytecoin does not have a specific problem that it solves. However, it has three distinct uses:
- Anonymous and private transactions – Bytecoin is a good choice for people who want their financial transactions to remain truly anonymous. There is no way that people can link a person to a wallet address.
- Faster transactions – People can use the Bytecoin network to carry out fast and almost free transactions. Each transaction only lasts two minutes.
- Mining decentralization – Bytecoin utilizes the Egalitarian algorithm that does not require heavy equipment for mining. This takes away mining power from the hands of an elite few.
Bytecoin platform and technology
Bytecoin is one of the earliest cryptocurrencies to use the CryptoNote technology. Transactions are carried out in 120 seconds. Just like Bitcoin, there are miners who ensure the validity of each transaction before it can be processed. For their work, the miners are rewarded with close to 65,000 Bytecoin (BCN) coins. This reward serves two purposes. One is the creation of new coins and second is free transactions.
CryptoNote offers Bytecoin a number of benefits:
- Truly anonymous, untraceable, and private transactions due to the use of ring signatures.
- Double spending is not possible on the network.
- The blockchain cannot be analyzed for past transactions.
- Uses the modified Egalitarian proof-of-work algorithm.
- The transactions are unlinkable. Only the receiver of a payment has the key that releases the funds.
- Free instantaneous payments.
- Hack resistant.
Bytecoin team and founders
There is nothing in black and white concerning Bytecoin’s development team. The project had several development teams working separately without communication. The ends result was the several forks that the coin has endured.
In recent times, the development team has changed its approach. It has, unfortunately, failed to remove the layer of anonymity that surrounds it. It has provided only names and headshots of the development team. There is nothing more beyond that.
Amjuarez and Nicholas van Saberhaageh are noted as the principal figures in Bytecoin’s development.
The cryptocurreny has its own Bytecoin wallet and it offers three different ways to send and receive your Bytecoin coins via a desktop, web, and mobile wallet. The mobile is only compatible with Android devices. The mobile wallet can be accessed from any browser or device. The desktop version runs on Windows, Mac, and Linux.
Anyone can mine Bytecoin. The developers of Bytecoin used the Egalitarian algorithm to allow almost everyone to participate in Bytecoin mining of the coins. However, Bytecoin has been associated with a pre-mine scandal in which a large portion of the coins was mined before the project became public knowledge.
The developers recently announced their roadmap via their website with the notable events being a public new API beta release, stable API release, a hard fork, and a public testnet release.
Twitter: Bytecoin is active on Twitter where it boasts 32.5 thousand followers. The cryptocurrency is active on the site and post content regularly.
Telegram: 7,683 followers engage with Bytecoin on Telegram.
Reddit: Bytecoin has 11,148 members on Reddit and members are active on the site spreading the news about the cryptocurrency.
How to buy Bytecoin
Bytecoin is traded on several cryptocurrency exchange. To buy Bytecoin it can be bought using BTC, ETH, USD, etc. The exchanges are, Poloniex, Coinbase, HitBTC, Stocks.Exchange, and CREX24.
Bytecoin is an open source decentralized currency that uses a modified proof-of-work that enables many people to participate in mining its coins. However, it is shadowed by a few negative setbacks. It was announced to the public when approximately 150 billion coins had been pre-mined. This pre-mine scandal causes some people to think that it could be a pump and dump scheme.
The founders and the development team have also kept a low profile. This does not sit well with many people who wonder if they have anything to hide. It has also been accused of facilitating transactions on the dark web.
Bytecoin is a viable coin that has the potential to be very useful if cryptocurrencies become mainstream. It also has the potential to increase in value and is of great value to those who want to transact privately and anonymously.