What is Bytecoin?
In this article, I will thoroughly review the Bytecoin blockchain network and its native cryptocurrency, the BCN coin. Bytecoin is the first ever blockchain to implement the CryptoNote algorithm. It is designed to substantially increase the security of the cryptocurrency. The network also has some interesting privacy features. While it still uses public and private addresses, just like other networks, but the public keys are grouped in such a way, that no one can accurately tell from where the transaction originated. The maximum supply of the coin is capped at 184,470,000,000 BCN, from which 99.78% are already in circulation.
Advantages
As I mentioned earlier, Bytecoin is the first network to use the CryptoNote algorithm, which provides low-fee and private transactions. Other notable advantages are:
- Ring CT – The CryptoNote algorithm wraps the addresses using a ring signature. This makes it impossible for transaction analysis and the blockchain to pinpoint the origin of the transaction because these ring signatures are shared between multiple users.
Disadvantages
I would like to mention where the shortcomings of Bytecoin are. The network is not using the best technology that is available and also, the cryptocurrency is completely pre-mined from the start. Other noteworthy disadvantages are:
- Unstable wallet – there are known wallet stability issues that hinder the normal usage.
History and Evolution
Bytecoin is a quite controversial project and cryptocurrency. Even though the community doesn’t approve fully of the project and negative history surrounding the anonymous founder, it is still in the top 40 crypto coins in the world. The network was launched back in July 2012 with a huge 80% of the coins pre-mined.
In the earlier stages of the project after launch, the identities of the team members were hidden. Due to the increasing skepticism and mistrust from the community, they decided to go public and share the names and structures of some of their departments. The cryptographic protocol specialists are Yael Taumann, Adi Shamir and Ron Rivest, while the people responsible for the buildup of the project are Suzuki E. and Fujisaki E.
Bytecoin’s Future
The goal of the development team is to create an alternative financial system that resembles traditional fiat currency functions but at a much lower cost. Bytecoin offers a few great features to its users that will help it in the long run like automated self-regulation that makes it completely decentralized, equality for the users without requirements for expensive hardware etc.
Future plans for the network are aimed mostly at improving the usability and security. The team announced that in 2019, a new API will be launched, and a hard fork of the mainnet is planned for March 2019.
Bytecoin Blockchain
As I mentioned earlier, Bytecoin is a decentralized peer to peer network using the Proof of Work consensus mechanism and the CryptoNight hashing function. It offers great security and privacy features as well as an automated network difficulty adjustment that is triggered at every block. The block rewards that are given out to the miners are decreased every time a new block is found. There is a formula that you can use to calculate each block reward – BaseReward = (MSupply – A)/218. To elaborate, MSupply = (264 – 1) atomic units and A stands for the amount of already generated coins in the network.
Bytecoin Nodes
Currently, on the Bytecoin cryptocurrency network, there are two types of nodes – full nodes and light nodes. Full nodes are responsible for keeping a complete copy of the blockchain transaction history and distributing it among other nodes. Light nodes are the mobile wallets that do not require the full blockchain to operate as they rely on the full nodes. If a miner wants to join the network, he will have to either be a full node or mine in a mining pool.
Forks or Tokens based on Bytecoin
The BCN coin is maybe one of the earliest altcoins to be released and its CryptoNode algorithm is still ahead of its time in terms of technology. The project started as a fork of Bitcoin back in 2012 with the goal to provide anonymity to its users and there are a few cryptocurrencies that forked from Bytecoin. Currently, there are no native tokens to the network as there are no plans for implementation of dApp support for now. The hard forks that gave a start to new cryptocurrencies are Boolberry (BBR), which forked April 2014 along with Monero (XMR). The third fork is Fantomcoin (FCN), which did so in May 2015.
Hard forks
- Boolberry (BBR) forked in April 2014
- Monero (XMR) forked in April 2014
- Fantomcoin (FCN) forked in May 2014
How to Get Bytecoin
If you would like to obtain some BCN there are two options to choose from. One of them is the most obvious and easiest – buying them from an exchange. Alternatively, you can mine for the coins. If you have a dedicated miner and don’t mind setting it up, this could prove to be the most profitable option.
Where to buy Bytecoin?
Bytecoin can be obtained from a few exchanges that support it, but there is no exchange that can offer it in a pair with fiat money. While this is not necessarily a disadvantage, you will need to buy other widely available cryptocurrencies and exchange them for BCN. You can find Bytecoin coins on over 10 exchanges, but the ones that I can recommend from personal experience are Hitbtc, Poloniex, and Gate.io. But why would you trade BCN? Well as I mentioned in the above sections, it is one of the earliest altcoin projects and it is in the top 30 cryptocurrencies in the world with proven longevity.
| Exchange | Cryptocurrencies | Fiat Money | |
|---|---|---|---|
|
Hitbtc
|
Bitcoin, Ethereum, Tether, eos | – | Trade now |
|
Poloniex
|
Bitcoin, Monero | – | Trade now |
|
Gate.io
|
Bitcoin, Tether | – | Trade now |
How to Mine Bytecoin
I would like to talk about Bytecoin mining as it is one of the methods to obtain this currency. The process itself is carried out according to an Egalitarian Proof of Work consensus mechanism and the hashing algorithm Scrypt. It allows for the coin to be mined by both CPU and GPU units effectively. While, yes, there are ASICs created for Bytecoins, which are the most efficient machines out there for mining, you can still use your PC and be successful. This is due to the nature of the CryptoNote hashing algorithm to require a lot of memory to be available for mining. It is a good idea to also consider the maintenance that these machines will require as they do use up a lot of electricity. Along with taking into consideration the hash rate and power consumption, below you can see your options for ASIC miners:
| Мining Hardware | Hash Rate | Power | Price | |
|---|---|---|---|---|
| Innosilicon A8+ CryptoMaster | 240 KH/s | 480W | $ 1,499 | buy now |
| Bitmain Antminer X3 | 220 KH/s | 465W | $ 1,115 | buy now |
| Baikal BK-N240 | 240 KH/S | 650 W | $ 1,299 | buy now |
Wallets for Bytecoin
If you would like to hold BCN coins and be a part of the network, you will need a wallet. Wallets are software programs that give you control and access to your funds by storing a set of two keys – private and public. Bytecoin has two official wallets that are a desktop and web-based. They are compatible with Windows, Linux, MacOS and any browser. There are plans for a mobile wallet to be released later in 2019. In any case, whichever option you choose, make sure to perform a backup once you have everything set up. It will save you a lot of trouble down the line, if there’s anything wrong with your wallet or PC.
For your convenience I would like to give you both the Bytecoin Official Wallet Windows Guide and the Bytecoin Official Wallet Linux Guide, which are made in a step-by-step manner.
Alternative Wallets
If you are not into the official wallets, fear not. There are other wallets out there that are developed and supported by third-party entities that usually specialize in that type of technology. Their features can vary a lot, from an improved user interface to support of multiple coins and innovative security technology implemented in them. Below you can see the alternative wallets that I can recommend:
Desktop Wallets
Mobile Wallets
Online Wallets
Bytecoin Network Security
Unfortunately, due to the popularity and sheer size of the Bytecoin network, it was a target for 51% attacks a few times in its past and mid-2018 when there was a spike in active users on the network, deposits, and withdrawals of exchanges had to be stopped in order to protect themselves.
News and Useful Links
If you would like to be a part of the Bytecoin cryptocurrency network, mine or trade BCN you can keep yourself always updated regarding news from the official website. Alternatively, you can also join the reddit sub-thread and follow their social media accounts.