What is Bytecoin
One of the older cryptocurrencies to still enjoy a high degree of popularity, Bytecoin (BCN) is a peer to peer, open source, decentralized cryptocurrency which allows instant money transfers across the globe and safe, secure transactions online. It is the first cryptocurrency to employ CryptoNote technology which was designed for anonymous cash settlements. Being developed entirely separate from bitcoin (not a fork), it uses a uniquely structured blockchain
History of Bytecoin
Though it had been around since 2012, the CryptoNote software architecture was completely rewritten in C++ in 2013, enhancing the security of its protocol, which received multiple updates, including the potential for multi-signature transactions. Bytecoin was released to the public in 2014 as the first implementation of the CryptoNote protocol, which was later adopted by several leading currencies, including Monero. In March 2015, Bytecoin announced the roadmap for several major future upgrades and releases.
How Bytecoin Works
Similar to bitcoin, Bytecoin transactions are carried out using the Bytecoin network where all network participants validate transactions; the difference being in Bytecoin that transaction are validated without ever knowing identifiable information about the sender. Bytecoin utilizes a technology known as CryptoNight for securing its transactions. CryptoNight technology is the predecessor to Ring Signature technology as employed in Monero, and masks sender information by grouping it with other concurrent senders to obfuscate a recipient’s source of funds.
Bytecoin is one of the earliest coins in circulation and has many reliable features that have contributed to its persistence.
- Fee-free instant international payments: As the transactions takes place without any intermediary and directly between two parties, there are no charges or fees for these transactions. Moreover, everything is done “as fast as the internet,” so transactions are speedy, generally taking only a few seconds for a transaction to receive a confirmation.
- Untraceable payments: Ring Signatures (CryptoNight), instead of ordinary digital signatures, not only enhances the security of transactions but also gives true anonymity to the parties involved. Moreover, using pseudo-random numbers, users can be kept truly anonymous.
- Safe wallet design: Bytecoin is blockchain analysis-resistant which means it is almost impossible to get identifiable data from a captured block using reverse engineering. The cryptography (CryptoNote) itself is ultra-safe, with supercomputer-like computational power needed to break down the data. Thus, wallets are deemed safe and coins within them secured.
- Total Privacy: Bytecoin ensures that the revelation of user identity and transaction details are completely optional. Users are free to disclose this data only when they wish.
- Your private data is safe: The Bytecoin network ensures that it is impossible to get information about financial operations within a wallet’s balance, unless a user decides to reveal them. Only wallet users can manage information that their business partners and third parties will see.
- Democratic Network Architecture: Bytecoin utilizes a novel Proof of Work (POW) protocol to validate transactions and ownership which also allows the users to vote, leading to a consensus based model.