Anonymous cryptocurrency Bytecoin just rose in price by 300% in a 24 hour period. There’s never been a better time to learn about the world of Bytecoin.
What is Bytecoin?
Bytecoin (BCN) is a cryptocurrency first launched back in July 2012. When it launched, it was priced at around 10 satoshis, and it remained at that price for most of its history. However, the price of BCN rose suddenly on May 17 to a record high of 109 satoshis on Poloniex.
Bytecoin has one important difference from other cryptocurrencies: it was the first ever altcoin based on CryptoNote technology. The altcoin is frequently called a “totally anonymous cryptocurrency”. Some of the advantages of the cryptocurrency include the utilization of ring signatures as well as one-time cryptocurrency addresses.
Another unique feature of Bytecoin is that it wasn’t made from a fork of bitcoin code. Instead, it was coded from scratch. This is where things get confusing: some people call bitcoin forks Bytecoins (BTE), which is different from Bytecoin (BCN), the currency we’re talking about today.
Some reports online will tell you that the creators of Bytecoin are a mysterious team of individuals. However, that’s not really true: the full list of team members and Bytecoin developers is listed publicly on Bytecoin.org. Most of these developers go by alias names. However, we know a little bit about their educational background and country of origin. Nevertheless, some developers are totally unknown even to the development team – so there’s definitely a layer of mystery about Bytecoin’s background.
Bytecoin advertises itself as a totally anonymous altcoin and as the first enterprise-ready altcoin. Let’s take a closer look at some of the advertised features of Bytecoin:
Fee-free instant international payments: The Bytecoin network works as fast as the internet. Your payments will take a little bit of time to process, as payments require cryptographic confirmation. Bytecoin claims transactions are processed in about 2 minutes.
Security: Bytecoin “protects user’s money with the most secure and modern cryptographic algorithms” that “are impossible to hack”. The makers of Bytecoin claim that hacking the currency “would require immense amount of expensive electricity and computational power of a supercomputer”. For that reason, you’re the only one who can access your wallet.
Safe private data: Bytecoin claims that it’s “totally impossible to get information about your financial operations and wallet balance” unless you choose to reveal that information. Only you can manage information that your business partners and third parties will see.
How to Start Using Bytecoin
Bytecoin is an open cryptocurrency. If you decide to start using the currency, you can voluntarily take part in the operation of the network. The only thing you need to do is download special software that creates a wallet for you. Using this software, you can start sending money to other users or receive payment from them.
If you wish to take part in the operation of the network, then you can allocate the computing power of your computer to the task.
There are two ways to get Bytecoins: you can contribute to network maintenance using your computer’s processing power; or, you can buy Bytecoins directly from exchanges (most major exchanges list BCN).
How Do Bytecoin Transactions Work?
Bytecoin works in a similar way to other cryptocurrencies – it’s just way more anonymous.
Let’s say you order a pizza for delivery. After you order the pizza online, you receive a 1 BCN bill containing the pizzeria’s Bytecoin wallet address. To pay that bill, you broadcast these instructions to the Bitcoin network: send 1 BCN from My_address to Pizzarea_address.
Each computer in the Bytecoin network receives this instruction. Then, these computers collectively check whether the 1 BCN you’re trying to transfer actually belongs to you.
Since Bytecoin is anonymous, the BCN network doesn’t actually know who transferred the 1 BCN to you in the first place. The system simply checks the conformity of your signature and has no access to personal data.
Then, each computer in the network packs the transactions that need to be processed into a block. Bocks need to comply with specific rules – i.e. a difficult task to solve. Each computer in the network calculates suitable transaction block form to protect the network from transaction forgery. Eventually, one computer in the network finds the correct block structure, which adds another block to the blockchain.
Each block takes 120 seconds to complete. During this time, the system checks the authenticity of the transaction and processes it. Then, by the end of the 120 seconds, the pizzeria owner now owns your 1 BCN.
Today, there are 184.47 billion BCN in circulation. Another 65,000 BCN are added every 120 seconds to reward miners.
Should You Start Using Bytecoin?
As with any altcoin outside of the top 5 or 10, there’s a potential to earn mining profits from Bytecoin right now. Ever since the price surged, there’s been an enormous growth in mining activity. You might want to download Bytecoin’s software from Bytecoin.org to start participating today. We’ll wait to see if this current price surge lasts. Bytecoin, however, remains one of the longest-lasting cryptocurrencies available today, and offers several unique advantages over other altcoins.