Some things around the world are changing very fast. The need for the coveted online anonymity and privacy is more essential than ever. This is because governments across the globe are adopting oppressive ways to limit their citizens through censorship. Therefore, privacy while online remains the key factor. This is where Bytecoin, which is a completely untraceable crypto coin, comes in. As much as other currencies in the crypto market provide better transactions than the fiat currencies, their wallets still remain traceable. To counter that, the Bytecoin was created with its core philosophy as online anonymity.
The essence of this article will therefore be to discuss the history and founders of the Bytecoin, how it works, its difference from other crypto coins, market performance, wallets and any other relevant information that will enhance your understanding.
History of the Bytecoin
Bytecoin was first announced in the year 2012 and since then its project has been fairy fractured. There before, the several team members who worked to support this crypto coin worked independently without communication. This was a big challenge that led to emergence of many forks of this coin in the market place.
However, in June 2017 the team behind the coin decide to make a difference and be as transparent as possible to their community and supporters. That doesn’t mean that the team came out open to the public. The only thing they gave was the head shots and names which were attached to the main web page of Bytecoin. No social media links or bio was provided although the community expected more.
It may be hard to predict anything about a crypto coin that fully works on the philosophy of anonymity. All in all, the team members are always working to provide new improvements every single day when they can. Recently, the team has made adjustments to their code and have released a new public API as at February 2018.Their mission is to enter the Asian, African and Middle East markets throughout the year.
Having accomplished several brand new partnership programs with other businesses and more active channels for communication, the road to the success of Bytecoin is no different from the modern business and marketing industry. Other competing coins in the run for having ultimate privacy are the likes of Dash, Monero and Zcash.
The case of Monero is actually different from the others because it is a fork of the original code that was used by Bytecoin. The fork was as a result of ideological differences between the supporters of Monero who debated that there is a chance Bytecoin was pre-mined for about 2 years before the official release to the market. The debate is still on.
Basically, Bytecoin is a digital untraceable currency that was the very fast in the crypto market to execute the Crypto Note Protocols. This open source protocol aims at giving the users of these crypto ultimately private tokens by using ring signatures that provide anonymous transactions to its users. The blockchain system of Bytecoin uses a Proof of Work algorithm which is known as Crypto-Night a development of the Crypto-Note.
The Bytecoin works to solve some of the problems the Bitcoin users face. It specifically majors on the privacy and anonymity issue. Besides that, it aims at making the coin more flexible and scalable to the volatile crypto market.
How Bytecoin Works
Traceability – The transactions made with the Bitcoin crypto currency are always posted on public ledgers hence giving people the ability to trace transactions made to the wallet users. The transactions can be made anonymous though, by using a third party who can mix the transactions hence they become completely untraceable. By virtue of the Crypto Note protocol, the transactions remain unlikable to the wallets.
All the transactions involved always provide a one-time key even with the case of multiple transactions to a single recipient. This makes sure that the addresses are not used more than one time hence the transactions become untraceable. To fully eliminate any bridge between the transactions made and the parties involved, ring signatures too are provided in that the signature you use to make the transaction is mixed with others in the network.
Proof of Work – The algorithm set in place to mine the Bitcoin favors mostly the miners with AISIC and GPU machines. This means that the network revolves around very powerful miners who can afford such machines. To close the gap between the two classes of miners, the Bytecoin has introduced the Egalitarian Proof of Work (PoW).
It uses Skrypt which is a PoW function which has so much in common with the Bitcoin’s hash-cash function. The only difference is that the Skrypt is not bound to remember activities. This being the case, even miners with CPUs can mine effectively although the GPU still remains ten times faster than the latter.
Coin Emissions – The rewards used in Bitcoin are always halved after every four years. This has reduced the hash-rate in the network which exposes it to malicious attacks like spending twice the amount. With each block, Bytecoin aims at decreasing the reward for each block. This leads to a less cumbersome decrease of the Block rewards than the Bitcoin.
All in all, the Bytecoin is not as worthwhile to mine because 99% of its coins are already in the market circulating.
Parameters – The fact that Bitcoin has certain hard-codes from the code it was initially sourced from; this makes it so difficult to make adjustments to this coin. The fact that the crypto market is changing so much it is difficult to predict what the future may require. This may be a challenge to such a coin with hard-codes.
Bytecoin’s Flexible Parameters
In that case, Bytecoin has come up with three parameters which make the coin more flexible in the volatile crypto market.
The size limits – Bytecoin users have the ability to suggest the blockchain’s size. In this case, the users can set a soft-limit as per the block sizes that they mine. This leaves room for growth of the blocks with the network growth.
Penalty for excess size – To reduce the chances of the blockchain bloating, the Bytecoin has penalties set in place, minimizing the block reward for extremely large blocks.
Mining difficulty – This changes as per each Bytecoin block with increase or decrease of the hash-rate hence making sure that the block rate remains constant even with sudden increase or decrease in number of miners.
If you are looking for a safe place to store your Bytecoin, there are three options which are worth.
Mobile wallets – Available on Android. It will soon be available on iOS too.
Web wallets – Accessible by web browsers
Desktop wallets – Available on Linux, Mac and Windows.
For ultimate privacy, you should encrypt your wallet with passwords and the two-factor authentication. This provides extra security than the default privacy set up.
In conclusion, Bytecoin is the very first blockchain project that provides the users with the desired privacy. As much as the Bytecoin improves on the functions of the Bitcoin, their whitepaper clearly indicates that they are not here to replace Bitcoin. The team behind Bytecoin has been transparent and communicable lately. Some of the users feel that this is questionable and people should be on the lookout.