Who Owns BCN? (And Other Valuable Information on Bytecoin)
While Bytecoin isn’t exactly a new addition to the cryptocurrency clan, it’s far from obsolete yet, either.
Bytecoin or BCN is owned by CryptoNote as its first cryptocurrency, and therefore is based on the CryptoNote technology, which offers an open source code.
CryptoNote provides 100% anonymity to BCN through its use of one-time addresses along with Ring Signatures, making it virtually impossible to track down any sender or receiver addresses.
BCN is an entirely independent cryptocurrency as it was developed apart from Bitcoin. Instead, it’s based solely through the unique technology of CryptoNote, which has its pros and cons.
In this article, we’ll outline everything you need to know about the BCN currency, including how it started, what point it’s at now, and where it’s headed.
History of Bytecoin
BCN was introduced to the cryptocurrency scene in March 2014. BCN developers actually faked its discovery, saying it had been up and running since 2012. However, the white paper signatures were proven later to be fake.
By the time this fake signature was discovered, over 80% of the BCN supply had been mined.
Although Bytecoin uses CryptoNote’s unique technology, it’s similar to Bitcoin in the way that it’s a peer-to-peer payment structure for the public.
Since the Bitcoin project first began in 2012, it can be considered one of the earliest cryptocurrencies. Bytecoin’s team have recently shared more about their peer-to-peer, anonymous payment structure through a series of media channels.
According to the team, BCN uses an egalitarian proof-of-work system which helps lower gaps between different classes of miners.
As we mentioned earlier, Bytecoin (BCN) is an open source software and uses a proof-of-work performance system.
Its unique technology makes for a different type of mining algorithm as it uses the x86 microprocessor-based AES command system and a huge amount of memory which makes mining on the graphic processing unit (GPU) not as efficient as Bitcoin.
It also uses the CryptoNight algorithm which is based on the ring signature, providing maximum anonymity. This protocol was created in 2001 by Adi Shamir, Ron Rivest, and Yael Tauman.
Thanks to the obfuscation and CryptoNote additions to the protocol, a large amount of mixing is also provided.
Again, this helps for total anonymity, and on top of that, participants using the system can make sure of plausible deniability in case of a capture.
Along with this impressive level of anonymity, BCN also offers a list of features:
Bytecoin ensures they protect users’ money with modern and secure cryptographic algorithms which are basically unhackable.
Bytecoin creators are in agreement that being able to break a cryptocurrency in the form of a 51% attack will require computing power of supercomputers along with a bunch of expensive electricity.
So, unhackable enough.
Unlimited and Instant Global Payments
The BCN network is as fast as the internet. Payment confirmation is required. However, transactions are usually processed in approximately 2 minutes.
While this isn’t the fastest transaction time available, it’s still pretty impressive.
Secure Personal Data
Bytecoin does a great job at security, and personal data isn’t an exception.
According to Bytecoin, if you don’t wish to disclose your data, it’s impossible to gain information about your transaction and the personal wallet balance.
BCN: The Original Privacy Coin
BCN isn’t a new cryptocurrency.
Despite being the first privacy coin, BCN has been humbled by the more well-known crypto competitor, Monero, which is actually a Bytecoin fork.
Monero has since taken its own route in terms of codebase and now owns the 13th largest market cap according to MarketCap.
But the question remains, if Bytecoin had a starting advantage, how did Monero take the lead?
While there are a few serious security flaws that could be responsible, a pre-mining strategy is also notable.
Forum evidence shows that over 80% of Bytecoins had been pre-mined by its development team before the public release.
The high amount of centralization meant that developers would gain the majority of profits from the coin and that its low circulating supply would make it vulnerable to large market manipulation. Distrust from the community eventually brought traders to Monero.
BCN Struggles with Technical Problems
Everything was chugging along smoothly for BCN. However, after a sudden dip in prices, crypto experts and enthusiasts believe that Bytecoin experienced a bout of technical issues that came in the way of its success.
After the opening trade, users of BCN experienced deposit and withdrawal delays which created word among the community, keeping traders away from the scent of a scam.
Relisting on Binance
These technical issues are mainly due to Bytecoin’s reliance on Binance for its trading.
These withdrawal issues caused other exchanges such as HitBTC and Poloniex to stop Bytecoin trading until its situation received an upgrade.
Since then, Bytecoin fell off its 15th biggest cryptocurrency status, followed by a scare in the market. The serious depreciation stopped once Binance announced a trade re-opening with Bytecoin, even though it’s still under maintenance to fix trading issues.
Poloniex followed suit and activated its Bytecoin trading.
Even though Bytecoin is experiencing a serious recovery mode on HitBTC, the team at Bytecoin has released an update to counter the withdrawal problem.
All in all, there’s still hope left in this old yet robust cryptocurrency.
According to Bytecoin, the token is on the rise as of this year. In under a year, BCN has risen to $0.015 per coin, thanks to a sudden spike.
Bytecoin works similarly to other currencies, just a lot more anonymous.
Suppose you order in some Chinese food. Once you place your order online, you are given a 1 BCN bill with the Chinese restaurant’s Bytecoin wallet address. In order to pay the bill, you’ll need to broadcast specific instruction to the network.
Every computer in the Bytecoin network will receive the instruction. Once they do, they’ll collectively check to see if the 1 BCN you’re attempting to transfer through your instructions truly belongs to you.
The Bytecoin system just checks the legitimacy of your signature. However, it doesn’t have access to any personal data.
After that, each network computer puts together the transactions into a block, calculating a proper transaction block form to protect itself from transaction forgery. Finally, one computer will find a proper block structure, adding another block to the blockchain.
As of today, 184.47 billion BCN exist in circulation and an additional 65,000 BCN are included every 120 seconds as rewards to miners.
So, Should I Use Bytecoin?
Despite Bytecoin’s past technological issues and sketchy white paper scam, it seems as though the dark days are behind them.
There’s great potential to earn mining profits from Bytecoin. Since its surge in price, Bytecoin has seen a huge mining growth activity.
Bytecoin actually acheived one of the largest milestones to getting added to Binance 24 hours after the technological malfunction incident.
According to Bytecoin, the next day, they received a list of messages from traders all over the world, thanking the company for Bytecoin’s ability to help them afford plane tickets and cars.
The cryptocurrency community itself also came together at the time and offered support, which shows a lot in the way of Bytecoin’s overall reputation in the industry. While it was a scary time for users and the Bytecoin team, it ended on a surprisingly positive note, filled with support and high hopes.
So, that all being said, we do recommend BCN. Try downloading the Bytecoin software and start participating to see if it’s right for you.
Also, as always, remember to check up on crypto stats to make sure the current Bytecoin price surge is still on the go.
On top of that Bytecoin fight, it also offers unique advantages over competitor Altcoins.
Most of all, throughout all the rough times, Bytecoin still stands as one of the longest-lasting cryptocurrencies offered today, proving that a bit of a hiccup has no chance in swaying this long-standing crypto king.