Byteball is a decentralized system that allows you to store arbitrary data in tamper-proof storage. Read our review to find out how Byteball works.
What Is Byteball?
Byteball is a decentralized system where you can store unique types of data – including everything from currencies to property titles to debt. The system, like other blockchain technology, allows you to store data in a tamper-proof way.
Byteball storage units are linked to one another. Each storage unit includes one or more hashes of earlier storage units. This confirms earlier units and establishes their partial order. These sets of links form a directed acyclic graph, or DAG – similar to the blockchain.
Everyone is allowed to add a new unit to the database – as long as they sign the transaction and pay a fee equal to the size of the added data in bytes.
The fee is paid to other users, who later confirm the newly added unit by including its hash within their own units. As each new unit is added, each earlier unit receives more and more confirmations from later units that include its hash – either directly or indirectly.
Byteball’s system revolves around an internal currency called bytes. Bytes are used to pay for adding data to the database. You can also use Byteball to issue your own currencies. You might issue a currency that represents data stored on Byteball – like property rights, debt, or company shares.
The advantage of Byteball is that it creates a tamper-proof record of history. Byteball’s whitepaper mentions George Orwell’s 1984, where the protagonist Winston Smith works in the Records Department of the Ministry of Truth.
His job is to revise historical records to make the past conform to the government’s narrative – including removing people from history or deleting records from history. Byteball wants to prevent that from happening.
Basically, Byteball wants to bring the advantages of blockchain technology to database management. Today, that system has extended to meet the needs in a diverse range of markets.
Byteball offers all of the following features:
Byteball has one feature that you can’t get in traditional currencies – conditional payments. You set a condition when the payee receives the money. If the condition is not met, you get your money back.
P2P Payments In Chat:
You can chat and pay from the same messaging app. Sending a payment is as easy as sending a message.
You can create a P2P smart contract that’s unlocked when a specific event occurs. Some people use this to bet on price movements. Others use it for insurance.
Byteball lets you buy insurance from peers and then get paid when a negative event occurs. You can also sell insurance for profit. Insurance is just a simple smart contract that can be unlocked by the insured – if the event in question did occur – or unlocked by the insurer – if the event did not occur.
You can insure against flight delay, for example, by finding your counterpart in the #P2P_insurance channel on Byteball’s Slack. Create a contract. If your flight arrives late, you can chat with the Byteball flight delays oracle to have it post the data about the delay, then unlock the contract.
You can bet against other users on sports events. Again, you find your counterpart in the #prediction_markets channel on the Byteball Slack, then create a contract that’s unlocked by you or your peer based on the outcome of the game.
You can use Byteball to shop by chatting with a merchant’s bot, paying in just two clicks.
Add and discover new chatbots from the Byteball online store. Developers can instantly access all Byteball users by adding their chatbot to the bot store. There are chatbots for sports scores, for example, flight delays, BTC prices, and more.
Untraceable Currency Called Blackbytes:
Want to pay in complete privacy? Byteball uses something called blackbytes, described as “a cash-like untraceable currency whose transactions are not visible on the public database, they are sent peer-to-peer instead.”
Byteball doesn’t have a central entity that stores and processes all payments. Instead, transactions created by users are cryptographically linked to one another. Once you add your new transaction, the number of other transactions that link to it grows like a snowball.
As mentioned above, Byteball has an immutable storage system. Once data is added to Byteball, it can never be revised or removed.
Once certain criteria are met, a new transaction becomes final. That transaction cannot be revised even by an attacker with large computational power.
Byteball allows for the creation of regulated assets – like from financial institutions that need to meet KYC/AML requirements.
You can choose to lock your funds behind multiple signatures.
The Byteball Wallet
To get started with Byteball, you’ll need to download the Byteball wallet from Byteball.org. That wallet is available for iOS, Android, Windows, Mac OS X, and Linux. You can also download it from GitHub.
After you’ve downloaded the wallet, you can chat with the Transition Bot to participate in the next distribution round. Or, you can buy or sell bytes for BTC by chatting with a trading bot. There’s also a P2P exchange where you can sell bytes and bitcoins (just talk to the BTC Oracle).
Byteball began as a system for decentralized immutable storage of arbitrary data – similar to other blockchains. Today, Byteball can be used to launch your own digital currencies, make bets with other users, and even buy insurance in a P2P marketplace. It’s a unique concept based on smart contracts, Slack, and blockchain technology.
To get started with Byteball, download the wallet.