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What is Bytecoin? (BCN)

02 March 2018 | 0 comments | Posted by Che Kohler in Money Talks

What is Bytecoin?

Cryptocurrency has been around for around 9 years since the introduction of Bitcoin in 2009. Its introduction to the open internet set in motion an industry that has exploded in recent months and new cryptocurrency projects seem to be launching every week.

While cryptocurrency and blockchain projects aim to apply this technology to what they deem as archaic practices and systems the speed at which projects evolve have seen a lot of cannibalization and increased competition in the industry. One of the more popular appeals of cryptocurrency is online privacy and anonymity of trade with projects like Monero, ZCash and Verge competing in order to be number one, but they're not the only gig in town.

Bytecoin, is a decentralized cryptocurrency that focuses heavily on privacy and security, can be used to send and receive monetary value while ensuring the transaction remains untraceable by third parties. By utilizing a privacy-oriented protocol that is powered by the use of ring signatures, Bytecoin has proved its ability to send the value in the form of transactions globally while remaining under the radar.

What is Bytecoin (BCN)?

Bytecoin is an untraceable cryptocurrency that uses CryptoNote ring signatures to provide anonymous transactions. Bytecoin is used as a primarily peer-to-peer (p2p) payment system and has many of the same use-cases as Bitcoin. It was created in 2012 and is one of the earliest developed cryptocurrencies. Since its release, it has also undergone a hard fork with the currency Monero splitting off from Bytecoin.

The Bytecoin team has kept themselves anonymous since its creation but as new projects have begun to compete with them they’ve opened up multiple communication channels, removed some layers of anonymity, and even built several local communities in order to drive support and adoption of the project.

An introduction to Bytecoin

Why should you pay attention to Bytecoin?

Bytecoin Transactions

Unlike fiat money transactions where your money is carried out through an intermediary, bank, or financial institution, transactions between Bytecoin users are carried out over the Internet which makes the transactions much more reliable. Transaction privacy is protected by secure cryptographic algorithms whereby no one can identify who sent the money, who the receiver was, and what amount of money was transferred.

Safety and Reliability

The reliability of Bytecoin is defined by the total computational power of all the computers that take part in the processing of transactions. The greater the processing power, the more reliable the network. In so doing all of the money stored in your wallet is already protected during the transaction process and its safety doesn’t depend on the network’s reliability. Your money is always safe.

Deflation

Bytecoins are gradually getting more expensive over time since the emission is limited to 184.47 billion BCN. The number of Bytecoin emitted every 120 seconds is slightly decreasing. As a result, BCN gains value and the exchange rate increases. While currencies with sharp decreases in reward per block are exposed to intense declines in network power, Bytecoin emissions are decreasing slowly, which protects the currency from economic shocks.

Emission

The emission of fiat currencies is a closed process where an issuer is engaging in its own capabilities. One can’t take part in the emission process. Bytecoin emission is an open process which employs the computing powers of all network members. Any user can join the Bytecoin network and take part in the emission process (thus, becoming a miner).

Mining in the network results in the creation of new money, which serves as a reward for users who employ their computing power in order to process transactions.

All transactions are carried out every 120 seconds. The Miners ensure that the transactions are processed correctly and provide cryptographic protection of transactions and personal data. However, miners cannot access users' financial data since Bytecoin protects the identity of the sender and the receiver and conceals the sum transferred.

Modular code base

Build your application easily with Bytecoin source code modules. The code base was designed with state-of-the-art standards and technologies. It's up to you whether to use Bytecoin out-of-the-box or modify its code to fit your own requirements. Playing around with Bytecoin features is a great experience.

Powerful and flexible API

Bytecoin API is multi-purpose and multi-layer to suit your particular needs. You may seamlessly integrate Bytecoin payment solution or build your own mining and wallet applications with the high-level API which provides you with the access to the core Bytecoin functions.

Multisignature

Bytecoin API provides access to multi-signature functionality. In simple terms, it requires a few parties involved in a transaction to sign it in order for the funds to be released. Multisig allows for the creation of native escrow services, foundation board wallets, and services with other sophisticated money transfer requirements

What is Bytecoin used for?

Anonymous donations

Whistleblower websites like Wikileaks need funds to continuously set the internet straight and dispell rumours and fake news published via mainstream media and questionable sources. Sites like these do not rely on content syndication or advertiser revenue in order to run.

Their main aim is to remain impartial and rely mainly on donations. While many people may feel they want to contribute to the cause but want to have any ties to it due to political risk, Bytecoin makes it easier for sites like these to receive donations without risk to either party.

Products and services

Many merchants providing their products and services online are already accepting bitcoin and they often also take Bytecoin, if not you can use services like shapeshift to convert your Bytecoin into BTC or ETH which are more widely accepted.

Can you mine Bytecoin?

Yes, Bytecoin can be mined. Bitcoin’s uses the PoW consensus algorithm that heavily favours miners that use powerful GPU and ASIC machines over those trying to mine with CPUs. This does cause a level of centralisation on the network as the more powerful miners compete with one another to complete blocks.

Can you earn Bytecoin?

Trading

Bytecoin users can earn digital currency via exchanges. Users can earn coins through trading on different fiat and cryptocurrencies and take advantage of market fluctuations.

Faucets

Bytecoin faucets are a reward system, in the form of a website or app, that dispenses rewards in the form of a dogecoin for visitors to claim in exchange for completing tasks like a captcha or task as described by the website.

Mining

As mentioned earlier Bytecoin can be mined, this can be done by setting up a pc with the software or a fully customised rig and start mining solo or in pools.

Where to buy Bytecoin?

Bytecoin is listed on a few of international cryptocurrency exchanges and is actively traded on websites like:

  • HitBTC
  • Poloniex
  • Stocks.Exchange

Should you invest Bytecoin?

Since its inception Bytecoin has set out with aims to bring privacy back to the people and guarantee its users safety from malicious third parties looking to snoop on transaction activities. It remains one of the oldest projects in the crypto space, with an intention of developing a store of value while being able to transact anonymously with other users but the project has stalled in recent years and seen competitors introduced and build up strong market caps.

We know privacy transactions will always be an attractive prospect but with 4 major players in this space its hard to see which horse to back at this stage. For more on Bytecoin check out their website

Contact us

If you want to know more about cryptocurrency don’t be shy we’re happy to assist. Simply contact us

Disclaimer: This article should not be taken as, and is not intended to provide any investment advice and is for educational purposes only. As of the time posting the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency as all investments contain risk.

Tags: Cryptocurrency, Blockchain, Fintech

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