What is Bytecoin?
Bytecoin is an open decentralized cryptocurrency. Anyone interested can join Bytecoin network and take part in currency development. As well as the Internet, Bytecoin is international by its nature.
Bytecoin allows safe and secure transactions around the globe and offers the convenience of instant fee-free money transactions.
In order to distinguish Bytecoin network from Bytecoin currency, the latter is referred to as BCN. For instance, current Bytecoin emission rate is 65,000 BCN each 120 seconds.
Bytecoin is an open cyptocurrency. Therefore anyone willing can become a user of the currency and voluntarily take part in operation of the network. The only thing you need to do is to download special software that will create a wallet for you. With help of this software you will be able to send money to other users and receive payments from them.
Bytecoin algorithms don’t allow other users to know your wallet balance, to whom you send money and where you receive your funds from.
You can take part in operation of the network by allocating computing power of your computer. Due to this mechanism, transaction processing is decentralized, which allows a person to be not only a user, but also a participant.
There are two ways to obtain Bytecoins. You can take part in network maintenance and get a reward for it, or buy BCN directly on exchanges.
Fiat money transactions between people are carried out through an intermediary, a bank or financial institution. Transaction reliability is guaranteed by an agent who conducts the transaction.
Transactions between Bytecoin users are carried out through the Internet. Transaction privacy is protected by secure cryptographic algorithms whereby no one can identify who sent the money, who the receiver was, and what amount of money was transferred.
Bytecoin transactions processing is done by the whole network of users. Yet no participant has access to the transaction details. All transfers are fully anonymous.
The transactions processing requires a considerable amount of computational resources. Those users who joined the network may allocate time of their computers for transaction processing. As a reward they receive BCN. Such process is called mining.
Emission of fiat currencies is a closed process where an issuer is engaging its own capabilities. One can’t take part in the emission process.
Bytecoin emission is an open process which employs computing powers of all network members. Any user can join the Bytecoin network and take part in the emission process (thus, becoming a miner).
Mining in the network results in creation of new money, which serves as the reward for users who employ their computing power in order to process transactions.
All transactions are carried out each 120 seconds. Miners ensure that the transactions are processed correctly and provide cryptographic protection of transactions and personal data. However, miners cannot access users’ financial data since Bytecoin protects the identity of the sender and the receiver, and conceals the sum transferred.
As a reward, miners receive roughly 65,000 BCN each 120 seconds. Such approach allows both new money emission and zero-fee transactions.
Bytecoins are gradually getting more expensive over time, since the emission is limited to 184.47 billion BCN. The number of Bytecoin emitted each 120 seconds is slightly decreasing. As a result BCN gains value and exchange rate increase.
While currencies with sharp decrease of reward per block are exposed to intense declines in network power, Bytecoin emission is decreasing slowly, which protects the currency from economic shocks.
Fiat currencies are assigned to specific territories while Bytecoin is bound to the Internet and therefore is international by its nature.
Bytecoin has formed its own network that consists from users who use Bytecoin for mutual settlements. Bytecoin network is open and anyone willing to join is welcome to become a user of Bytecoin currency.
Safety and reliability
The reliability of Bytecoin is defined by total computational power of all the computers that take part in transactions processing. The greater the processing power, the more reliable the network.
In so doing all money stored in your wallet is already protected during the transaction processing and the safety doesn’t depend on network reliability. Your money is safe anyway.
How Bytecoin works
John has 30 BCN in his wallet. He wants to order pizza delivery to his place which costs 1 Bytecoin, taxes and delivery included.
John places an order on the website. Right after that he receives 1 BCN bill that contains the pizzeria Bytecoin wallet address. John broadcasts the following instruction to the Bytecoin network: send 1 BCN from John_address to pizzeria_address.
Once each computer in the network receives this insutruction it checks whether this BCN John wants to transfer actually belongs to him. However a computer can’t find out neither who transferred this BCN to John, nor his balance. A computer simply checks conformity of sender’s signature. It has no access to personal data.
Each computer in the network collects the transactions that need to be processed and packs them up in a block. Each block should comply with specific rules, which is a difficult task to solve. Hence, each computer in the network works on calculating suitable transaction block form. This is required to protect the network from transaction forgery.
At some point one of computers in the network may be lucky to find the correct block structure. Then this computer puts the block into its blockchain file, which represents the database for all performed transactions. Then this computer broadcasts the new block to all other computers in the network so that they could also update their blockchain files. The transaction is completed and the owner of the computer that was the first to find the correct block structure gets a reward.
After the transaction is done, 1 BCN belongs to pizzeria and no longer to John. The Bytecoin blockchain contains all data required for pizzeria owner to use this 1 BCN for his own goals.
This whole process takes about than 2 minutes, and the pizzeria owner will get paid before he even starts to cook John’s pizza. Moreover, in order to get paid with Bytecoins he only needs a computer with the Internet access. No fees, no intermediaries.
You can easily convert Bytecoins into U.S. dollars and vice versa through the exchanges.
Block time: 120 seconds. It takes 120 seconds to check the authenticity of a transaction and process it. This time is used to apply cryptographic algorithms, and make the payments secure.
Total coins: 184.47 billion BCN. Bytecoin emission is limited. Each 120 seconds a new batch of roughly 65,000 BCN is emitted and distributed between miners as reward which makes zero-fee transactions possible.
Try to mine Bytcoin at MinerGate