Bitcoin and most other cryptocurrencies provide better anonymity than transactions with fiat currency (for example, credit cards). However, with sufficient analysis of the wallet transaction can be tracked. This led to the creation of Bytecoin (BCN), a cryptocurrency with anonymity as its main philosophy.
What does the company / project do?
“Anonymous payments are your personal safety, lack of control by banks and the state. “
Bytecoin is a peer-to-peer digital cryptocurrency released in July 2012. Since then, its value has slowly increased, placing it in direct competition with other leading and widely used cryptocurrencies, such as Bitcoin and Ethereum.
For a long time, a more secure and anonymous cryptocurrency was requested for the digital currency community. Bytecoin provides users with an additional level of security and anonymity, confusing the transaction addresses of senders and recipients of BCN.
How do public transactions work on the blockchain?
When a user sends a certain cryptocurrency to another user, a transaction is created. This transaction contains the addresses of the wallet of the sender and the recipient and notes how many coins were sent. For example, if Alice sends Bob 0.01 BTC, a transaction is created containing their addresses, the amount of 0.01 BTC and the key used to verify the integrity of the transaction. The collection of these transactions is checked then by the miners and sent to all users of the cryptocurrency in the form of a block that must be stored in a chain known as the blockchain.
The problem many users face is that if anyone knew the address of Bob’s public wallet, for example, this person would also know that someone sent Bob 0.01 BTC. Tracking the address is thus possible with coins, such as bitcoin, because the addresses are public and someone can use the services that track these addresses to find out who sends the cryptocurrency to a particular address.
This openness is at the same time one of the greatest advantages of modern cryptocurrencies in the market and one of their biggest shortcomings.
How does Bytecoin differ from Bitcoin?
The highest value of Bytecoin comes from advances in how blocking transactions are cache-busting transactions and public addresses of senders and recipients. Here is the question that Bytecoin is trying to solve:
Many users want to resist block analysis. When one user sends a cryptocurrency to another, both their addresses are stored in the blockchain as part of the transaction along with the amount of cryptocurrency sent. The open philosophy of the blockchain is a problem: if you know the public addresses of people, you can track how many transactions they receive and how much money they receive.
Bytecoin is the solution to this openness of transactions. Wrapping addresses using a ring signature algorithm called CryptoNote, transaction analysts and blockers will not be able to accurately identify the participants involved in the transaction. Because the ring signatures are used by several users, it would be possible to determine which user group made the transaction, but not which specific user in this group.
Features of Bytecoin
Bytecoin is not a Bitcoin fork, it was created from scratch using CryptoNote technology. On the contrary, many other cryptocurrencies are forks of Bytecoin.
This cryptocurrency was conceived as a complex financial system, through which business can become part of the growing cryptonomy. Bytecoin offers a high level of privacy protection.
CryptoNote technology ensures privacy and anonymity of transactions. It uses a memory-based algorithm called “CryptoNight”, because of which GPU miners do not have any advantages over CPU miners, and which makes it impossible at all to ASIC mining. Bytecoin can be easily obtained with the help of mining since this cryptocurrency is undemanding to the capabilities of the equipment.
Benefits of Bytecoin
- Does not belong to any state or government, financial issuer and can be used all over the world, regardless of geographic and political barriers.
- Its value does not depend on the intervention of the central bank.
- Transactions in real time, usually the transaction is executed within 120 seconds.
- Irreversibility of transactions: there is no third party that can change the transaction.
- It is impossible to falsify, you cannot create a false Bytecoin or make a backup account without discovering the network.
- Anonymity – no one is required to disclose his identity, which makes Bytecoin particularly useful for use in countries where they regulate totalitarian regimes.
- Security – Bytecoin has strong cryptographic support, which protects it from counterfeits and can be stored in several places simultaneously. The technology on which the Bytecoin protocol is based is several times safer than the technology used by banks and credit cards.
- Transparency – the open source code, the absence of any trickery or deception, everyone can verify this.
- It works 24 hours a day – for operations in Bytecoin there are no schedules, holidays or emergencies, Bytecoin network is counted by millions of computers around the world, each computer is a separate access server.
- Your personal account, the wallet can be encrypted and stored on a USB storage medium, which can be taken easily with you wherever you go or hide in a safe.
- Algorithm: CryptoNight;
- Locking time is 120 seconds;
- The difficulty redirects each block;
- The block reward reduces each block in accordance with the formula: BaseReward = (MSupply-A) / 2 18 where units MSupply = (2 64 – 1), and “A” – the number of coins already generated;
- One coin is divided into 8 decimal places (divided up to 10 ^ 8);
- The total amount of coins: 18 446 744 073 709 551 616 units (= 184.46 billion BCN)
- Based on CryptoNote technology
Multiple storage options Bytecoin
- At home on a local computer or on a laptop – this is the most reliable source of storage of coins. But it takes a long time to synchronize the whole blockchain. In addition, the wallet is protected and encrypted using your password for subsequent access.
- Storage of coins at the official online wallet – this is the easiest way to make Bytecoin wallet, registration is quick, specifying username and password. After logging in to your account, you can create a wallet address, you can add and delete addresses purses, there are security management functions.
- You can start a wallet at crypto-exchanges – this method is necessary for those who like to trade with cryptocurrency, buying cheaper, and selling more expensive, i.e. speculation. The main disadvantages of these wallets are that they are located on the exchange’s servers and in the event of the closing of the exchange, the return of your funds will be difficult or even completely without your funds.
- Useful links
Created by a programmer under the nick amjuarez, which decided not to repeat the majority of developers who at that time did fork bitcoin, and wrote the Bytecoin code completely from scratch.
David Inostroza – Financial Advisor
Daniel – Developer
Dimitar Correa Voutchkova – Spanish Community Manager
Eduardo Cerna García – Designer
Seven Doorknobs – Pool Developer
Emil Rokossovsky – Bytecoin.foundation creator
Vincent – Mining Advisor
The first addition to the exchanges: June 17, 2014