Updated: Dec 20, 2019
Bytecoin is a peer-to-peer, private, decentralized cryptocurrency with open-source code, which was released in July 2012. Since then, the value of the coin has been slowly on the rise. BCN is in direct competition with other major cryptocurrencies like Ethereum and Bitcoin. Security and privacy are naturally a part of the blockchain, making it the best solution to maintain financial privacy.
This guide will talk about what Bytecoin is designed for, the creators behind it, the way it works, and the various uses and applications.
What Is Bytecoin Designed For?
For a long time, the crypto community has been asking for a more secure and anonymous currency. Bytecoin is designed to give the digital currency community, an additional layer of anonymity and security, by obfuscating transaction addresses of both senders and recipients of the BCN token.
Bytecoin is intended to advance upon Bitcoin’s existing technology. It significantly improves the way blockchains store user transactions and public addresses of senders and recipients. The crypto platform provides a solution to the openness of user transactions.
Who Is the Team Behind Bytecoin?
Bytecoin was created in 2012 and is one of the earliest developed cryptocurrencies. Up until 2017, the team had remained completely anonymous. Though they still use pseudonyms, the team has decided to change their image and provide more transparency to the community. They have opened up multiple communication channels, built several local communities, and removed layers of anonymity.
How Does Bytecoin Work?
Bytecoin works on an Egalitarian Proof-of-Work function called skrypt. This makes BCN mineable by both GPU and CPU. The coin is a simple Vanilla cryptocurrency. It remains retro, and the tech is nothing better than Bitcoin-with-a-twist.
Bytecoin is an improvement upon Bitcoin when flexibility and scalability are concerned. It was the first blockchain to implement CryptoNote that makes transactions untraceable, by providing end-to-end encryption.
The network works by generating a one-time public key and ring signature for each transaction, which helps in keeping everything randomized and much more difficult to trace. Users have the option to further obscure their transactions for a higher fee, and experience (in theory) a fully anonymous cryptocurrency.
Transactions are created instantaneously on Bytecoin. However, a miner is required to verify the transaction and build a block of the transactions. The funds will remain unusable until the miner broadcasts that block. However, with the help of a very strong Bytecoin community that works diligently, the entire process does not take more than 2 minutes, as opposed to 10 minutes on Bitcoin blockchain.
What are Current and Future Applications of Bytecoin?
Bytecoin is an accepted mode of payment at various vendor and merchant outlets, accepting other cryptocurrencies. However, the vast majority of users are still early traders and adopters. BCN is tradable on the majority of exchanges, including Binance, HitBTC, Poloniex, and OKEx. BCN is typically paired with BTC, but many exchanges offer USDT and ETH trading pairs as well.
Here are some merchants where BCN can be used:
● Payza – allows users to send and receive BCN/fiat online with ease
● HearFirst – This is a hearing aids store that accepts BCN
● CCXnews – BCN can be used to pay for daily news posts and market reports
● Domaine de Cromey – offers a winery experience that is the best of Burgundy
● Coinstop.io – this is the authorized reseller of Trezor, Ledger and KeepKey devices in Australia, which accepts BCN
● LiteArt Gallery – This gallery accept BCN as payment for original art
● RPM Accessories – You can purchase gun accessories in exchange for BCN
There are numerous block explorers associated with Bytecoin as well. Some of these are:
● Minergate – This is a block explorer that helps in tracking transactions and other Bytecoin network data
● Official Block Explorer – This is the official BCN explorer that helps in tracking transactions and other Bytecoin network data
Bytecoin is gearing up to get great things done shortly. While the development team of the cryptocurrency is still looking to keep anonymity at the forefront; it also aims to introduce more features in the future. For instance, the team is looking to create a more lightweight wallet, which can be used on smartphones. They are also looking at developing a scripting language, which will allow users to create smart contracts.
BCN is one of the earliest altcoins, and the CryptoNote ring signatures can best be called futuristic since they are still ahead of their time. One of the most popular forks of Bytecoin is Monero (XMR), which is in direct competition with ZCash and Dash.