In today’s increasingly modern world, it is becoming more and more difficult to maintain your privacy. Social media and other platforms make our lives more public than ever before and while some people are fine with it, others are not.
Even in the world of blockchain and cryptocurrency, there is a lot of information that remains public (even though it is safe and secure). However, there is one platform and cryptocurrency out there that is keeping everything private and anonymous, and they are called Bytecoin. This post will look at what the cryptocurrency is, how it works and more.
What is Bytecoin?
As we touched on briefly, Bytecoin is the first private, untraceable and anonymous cryptocurrency. It is completely decentralized and features open source code, so anyone can take part in the development of the network. You can participate in the network by allocating a certain portion of your computer’s computing power. If you take part in this fashion you will be rewarded, but you can also purchase BCN (the Bytecoin token) through exchanges, too. So there are two different ways you can get your hands on the token.
It is a great solution for those who want to keep their financial privacy and Bytecoin can provide instant private transactions all across the world. They are free of charge and completely untraceable, as well. All in all, it has many of the same use cases as Bitcoin, as it is primarily a peer to peer payment system.
Bytecoin was originally created back in 2012, which makes it a true veteran in the space. They seek to improve many of the issues that were brought up around Bitcoin, namely the privacy concerns. Of course, they also want to make the coin more scalable and flexible, too.
The Benefits of Bytecoin
Unlike fiat currencies, where your money goes through a third party of some kind during a transaction, Bytecoin transactions simply take place over the internet. This makes them incredibly reliable, and allows for complete privacy as no one knows who sent the money, who is receiving it and how much it was.
Another benefit is the fact that your money and tokens are always safe due to the reliability of the network. Because Bytecoin is decentralized, the network spans across several different computers using their computing power. So if one of the computers suddenly fails or gets hacked, that won’t affect the overall health of the network.
Bytecoin is also great for everyone, whether you are just an individual user, a business or an investor. It is awesome for individuals as it is very simple and quick to start with the wallet, and you can rest assured that all of your information is safe, secure and private. Bytecoin is also quite easy to mine on an average computer.
For a business, it is great because they provide an enterprise-ready solution for getting involved in blockchain technology. They ensure your money is safe, they reduce your risk with fraud protection, and ensure all of your sensitive data is safe. For investors, the diverse profits and dividends, as well as a variety of other unique options to help make your money work for you.
How Does Bytecoin Work?
So now that you know a little about the coin, its uses, and its benefits, how does it work? Well, instead of the public ledger that is used by Bitcoin, Bytecoin is based on CryptoNote, which ensures everything is private. Each transaction only utilizes a one-time public key, which eliminates the problem or address re-use, which drops the ability for a transaction to be traced.
There are also one-time ring signatures used which will reduce the chances of linking a transaction to its participants. You yourself can actually control how anonymous you are, as you control your ring-signature. The more anonymous and untraceable you want your transactions, the higher the fee you will have to pay.
Bytecoin also features an Egalitarian Proof of Work algorithm. It helps balance the power so that everyone can participate in the mining process if they choose, not just those with extremely high power GPUs. This is different from the Bitcoin algorithm, that highly favors higher-GPU machines and thus, someone with a standard computer simply wouldn’t be able to mine Bitcoin very efficiently at all.
While the project is open source, there are indeed a few constants that are hard-coded so that they cannot be changed. While this is fine for now, the cryptocurrency and blockchain industry is constantly changing and evolving, so this could pose a problem if the future needs of the system or platform were to change.
If you’d like to know or learn more about the inner workings of Bytecoin and anything else relating to the technology, be sure to check out their technological documentation.
The Team at Bytecoin
Up until fairly recently, the team at Bytecoin was completely anonymous, which is fitting. However, they recently decided to go a little more public, in the form of releasing headshots and names of some of those involved with Bytecoin. Even still, there are no social media links or anything like that, so we don’t truly know who is behind this and what sorts of experience they have, which doesn’t shock us with how much Bytecoin focuses on privacy.
However, this can definitely be concerning for some potential users or investors, as you generally like to see and know the people who are a part of your potential investment. Only time will tell if they eventually release more information about the team or not.
In conclusion, you can think of Bytecoin as a more private version of Bitcoin, with a couple of other solutions for the problems of scalability and flexibility. While it hasn’t (and may never) reach the same highs as Bitcoin, that doesn’t mean it won’t be a successful coin or platform, especially for those who really value their privacy.