The most mysterious virtual currency today can easily be called Bytecoin (ticker BCN). This cryptocurrency allows you to carry out completely anonymous transactions on the Internet. It is absolutely impossible to trace the stages of electronic money transfer in its blockchain. It is not even known who created such an unusual cryptocurrency, since all press releases or news reports contain only nicknames.
Let’s take a closer look at this “dark horse”, which has gained a good foothold in the modern cryptocurrency world. Let's analyze all the features and qualities of Bytecoin, as well as ways to store it and receive BCN coins. Let's find out analysts' forecasts regarding the prospects of this altcoin.
What is Bytecoin
The financial ticker BCN denotes the infrastructure consisting of cryptocurrency and the distributed network on which these electronic coins circulate, participating in the execution of anonymous transactions. In its structure and functioning mechanism, Bytecoin is very close to the well-known Bitcoin, however, there is no direct connection between these digital assets.
Bytecoin is a decentralized cryptocurrency that allows you to perform completely anonymous, commission-free transactions. BCN coins can be sold, mined or purchased.
Anyone can become a participant in the Bytecoin project by purchasing tokens and registering a special virtual wallet. Due to the specificity of the system, its users can make purchases online without providing any information about themselves. Participants in the system who maintain the project's functionality receive regular rewards.
Nuance! If the buyer sends a certain amount of coins to the seller, then the participants in the transaction have an obligation - they need to check and confirm that the declared amount of cryptocurrency is actually available to the customer in order to complete the transaction!
Each transaction in the system is contained in a block, so there are certain requirements for such operations. Network participants simultaneously work to find the correct block for each transaction. If a user manages to accomplish this, then he is paid a reward - a certain number of BCN coins.
How did Bytecoin come about?
The history of the electronic currency Bytecoin is covered in a dense veil of secrecy. It is known for sure that this version of the cryptocurrency was originally intended for the darknet, where it appeared in 2012.
Taking into account the peculiarities of the “dark side” of the Internet, we can assume the real focus of Bytecoin and its then use - any illegal, criminal, dubious financial transactions. Participants in such transactions, of course, do not want to advertise their identities, which is why they liked Bytecoin.
But the creators of this cryptocurrency clearly envisioned a different future for their digital product, so in 2014 the virtual currency BCN came out of the darknet and settled on the largest cryptocurrency exchanges.
Thanks to the threats of some large investor (early 2017), today we can obtain at least a small part of information about this system. This investor promised to instantly sell a significant amount of Bytecoin coins if the creators did not publish a plan for further development of the project (road map) and information about shared ownership in Bytecoin. To make his statements more convincing, he sent a screenshot of part of his wallet, which shows the available number of coins.
Naturally, the project organizers were forced to make some concessions. They are part of the demands of the anonymous owner of the coins (nickname John Pat). A reasonable roadmap soon appeared on the site, demonstrating the plans of the developers, as well as brief information about the creators of the project, who also provided only their pseudonyms.
Now, the Bytecoin cryptocurrency is developing and progressing according to plan.
Correlation coefficient
Despite the fact that Bytecoin is a separate cryptocurrency, it is very dependent on its progenitor Bitcoin. All this is due to several factors.
The second reason is not directly related to Bytecoin, but in general it concerns the entire cryptocurrency market. Most exchanges, with the exception of Bitfinex, are capitalized using Bitcoin. Its convenient manipulation structure leads to the fact that when trying to withdraw his funds to fiat, the investor is still faced with the need (albeit hidden from him) to transfer funds to the parent crypt. As a result, almost all cryptocurrencies are graphically dependent on BTC. Perhaps the only exception is ETH and its subsidiary projects, which, due to the fact that they use exclusively fiat funds as the main source of financing, avoided this fate.
That is why, when taking into account the calculation of BCH quotes, you have to pay attention not only to its fundamental characteristics or market sentiment, but also to its progenitor BTC.
Project Features
Similar to Bitcoin, the Bytecoin cryptocurrency operates on a similar principle - the PoW algorithm is used, and all transactions are recorded in the blockchain. However, the Bytecoin system uses a completely different CryptoNight algorithm. This technology allows you to create optimal security for transactions.
Explanation! CryptoNote's encrypted algorithm uses one-time email addresses and a ring signature. This complex allows you to hide information about the recipient and sender of crypto money!
It is very convenient to process existing transactions every 175-190 seconds. This time range is quite sufficient to verify the correctness of the transaction and ensure that cryptographic protection is fully ensured. This processing of financial transactions is very labor-intensive, however, the use of significant hardware capacity makes it relatively easy to do.
Each user who gives his computer power to solve problems with the Bytecoin system automatically becomes a miner (cryptocurrency miner). He receives about 10,000 coins for a certain time spent processing the transaction. This allows you to simultaneously perform commission-free transactions, as well as issue.
All security is determined by the total computing power of all transactions performed.
What is the difference?
Its main feature is a greater level of anonymity compared to other cryptocurrencies. The BCN network does not actually know who gave you the coins; the system only checks the signature and does not have access to personal data. What sets BCN apart from other privacy-focused altcoins is its low transaction fees. You can get bytecoin by contributing to the maintenance of the network using the computing power of your own computer or by purchasing directly from exchanges that work with BCN.
Financial aspects
The coin appeared on the cryptocurrency market in early-mid 2014. Initially, the creators of the project distributed it among system participants, and it was possible to take possession of BCN through when the bulk of the cryptocurrency was distributed at $0.000065 per coin.
Now, of course, the situation is different: current as of 02/01/2018
- BCN coin value is $0.005955;
- total project capitalization – $1.09 billion;
- the price of a coin, in relation to bitcoin, is 0.00000058 satoshi.
Relevance as of 03/06/2019
- BCN coin value is $0.00067832;
- capitalization – $124,773,295;
- the price in relation to BTC is 0.00000018 satoshi.
Of course, at the initial time intervals, the price rate on the cryptocurrency exchange varied significantly, reflecting exclusively the market component, but today everything has more or less stabilized.
Forecast for 2022
Bytecoin was and remains the most anonymous digital currency. Despite the speculative factor, the coin continues to be used by darknet participants, because the demand for it was high even during the correction that the entire online currency market experienced at the beginning of 2022.
The emission of Bitcoin tokens will end soon. There will be no new money supply appearing on the market. Even with a slight increase in demand for BCN, the cost of the latter will increase.
At the beginning of February 2022, investor interest in this digital currency increased, which provoked its rise in price. The total capitalization is approaching the $1 billion mark. Based on this, analysts predict further growth of the rate. Online currency remains a promising investment option.
The creators of the project are working to improve the currency. In the summer of 2017, a roadmap for 2022 was published on the currency’s official website. Another hard fork is planned. A new version of the wallet is expected to be released in the first quarter.
Positive points
Developers include the following strengths of Bytecoin:
- independence of the value of digital currency from large banks;
- does not belong to any financial issuer, government or state. Can be used anywhere in the world, regardless of political or geographical barriers;
- The demand for anonymous cryptocurrency is constantly increasing, and this increases the purchasing power of users;
- irreversibility of transactions - there is no third party capable of changing the financial transaction;
- complete anonymity - participants in the transaction are not required to provide personal data. This is especially beneficial in states with a totalitarian regime;
- each transaction occurs online and, as a rule, is completed in 120 seconds;
- impossibility of falsification - no one can create a duplicate account or false Bytecoin without the system detecting this fact;
- transparency brought about by open source. The user can ensure that there are no tricks or deception;
- maximum security – Bytecoin has exceptionally strong cryptographic support, which perfectly protects it from all kinds of counterfeits. Data can be stored in several places at the same time. The protocol underlying Bytecoin is many times safer than technological solutions used in the banking sector;
- users can securely encrypt personal accounts and wallets, and also save them on USB drives to keep with them or in a safe;
- The cryptocurrency operates around the clock and without various failures, since the Bytecoin network is distributed over millions of computers, each of which is a separate access server.
Coin storage options
Three variants of BCN content have been developed:
Method No. 1 Official online wallet
The simplest option, since creating a wallet is simple and quick. You need to create a personal password and login, and after logging into the wallet, you can create your own wallet address. There are many functions, for example, managing security, deleting or adding other wallets, etc.
Method No. 2 On a personal PC
This method of storing coins is particularly reliable, however, it takes a lot of time to synchronize the blockchain. This is all done only once. The wallet is encrypted with a secure code that the user independently comes up with
Method No. 3 On crypto exchanges
An ideal option for those who like to speculate in virtual currency. The main disadvantage of this storage method is the inability to return your coins if the exchange stops working.
Let's take a closer look at the first option.
Wallet for BCN
Bytecoin developers have created their own wallet for crypto coins. You can download the desktop version (especially for bytecoins) from the official website. If this option is not available, you can use the online version. Specialists are constantly improving the wallet, releasing new versions. The latest modification was released in the summer of 2022. The interface is clear, every Bytecoin owner can figure it out.
In addition, you can work with your personal BCN storage via the command line and an RPC wallet that does not have a graphical interface.
You can also use the alternative Bytecoin Wallet, created by Freewallet. Here are the functions:
- monitoring the bytecoin rate;
- carrying out transactions to wallets of other virtual currencies;
- viewing the balance in terms of other watts;
- replenishment with some cryptocurrencies;
- BCN exchange.
How to get Bytecoin
The ability to mine this cryptocurrency in several classic ways:
- through special pools;
- through the power of a home PC;
- creating mining farms.
Another option is to receive it for free through virtual faucets (special resources), which distribute thousandths of coins for visits. In this option, however, you will have to watch a lot of advertising.
Purchase BCN from online exchangers or cryptocurrency exchanges. The most popular exchangers:
en.cryptonator.com
changelly.com
Clarification! In the first case, you can purchase bytecoins for rubles, and the second resource is characterized by an unfavorable exchange rate for the buyer!
The most profitable option is to exchange BCN on cryptocurrency exchanges, but here you will need to undergo verification by sending scans of documents.
Technical parameters of Bytecoin
BCN blockchain parameters:
- the network uses the Crypto Night algorithm, created based on the CryptoNote protocol;
- the time it takes to create a new block is exactly 2 minutes;
- the complexity of the network increases with the advent of the next new block;
- the size of the reward for miners decreases after mining the next block and is calculated by the formula: the reward is equal to MSupply-A divided by 218. Here MSupply is the designation of the atomic unit, A is the number of BCN mined;
- Each Bitcoin coin has eight decimal places;
- the maximum number of coins in the network is 184.47 billion;
- There are 183.728 billion in circulation.
Prospects for the development of bytecoin
The main attention is drawn to the fact that the entire volume of Bytecoin coins has been issued - this is a very important point, since it is no longer possible to make money from mining this cryptocurrency.
If we consider earnings on the coin exchange rate, then we need to highlight the points that contribute to the impact on the cost of bytecoin:
- the appearance of Bytecoin on serious cryptocurrency exchanges;
- obvious pump of BCN coins. This is an artificial increase in price by large investors in order to subsequently sharply sell virtual currency and make money from people who invested in the project;
- today there is a great demand for electronic money that provides anonymity;
- gradual improvement of the system code;
- implementation by developers of the previously outlined roadmap.
Positive prospects for Bytecoin in the near future are obvious, since the project is developing steadily thanks to the effective actions of the developers.
Financial analysts give the following forecast : if the creators of the project do not stop the introduction of innovative solutions into the system and do not complete the promotion of this cryptocurrency, then BCN altcoins will continue their price growth for a long time. There is a possibility that Bytecoin may occupy a worthy niche in the cryptocurrency market.
CryptoNote Protocol
Bytecoin is one of a dozen cryptocurrencies that use the CryptoNote protocol, which ensures maximum confidentiality of work on the network. The creators of this technology have 10 years of experience in the field of cryptography, having managed to develop an algorithm that made a kind of revolution and influenced the entire cryptocurrency sphere.
Among the key features of CryptoNote, dubbed the Bitcoin killer:
- ring signature technologies;
- evidence of 2nd expenditure;
- one-time keys for transactions that cannot be linked;
- unhurried issue;
- adaptive mechanism for imposing restrictions;
- equality of participants within the network (egalitarianism).
