Over the years, we have seen multiple privacy-oriented cryptocurrencies emerge. As most people are well aware, Monero seems to be holding all the best cards in this regard even though there is still room for improvement. Bytecoin is another project focusing on the same problem, even though its developers have done things slightly differently. Combining privacy with untraceable payments has proven challenging; that much is evident.
Why does Bytecoin Exist?
It is not hard to figure out the idea behind Bytecoin. It is a cryptocurrency designed to protect individual privacy, minimize risk for business, and allow for investment growth. The project has been around since 2012, and the team has worked hard to provide an untraceable payment solution. That has not been an easy feat, even though Bytecoin’s current market capitalization of US$1.4 billion shows this project is well worth looking into.
Bytecoin’s Juicy Bits
There are several aspects of Bytecoin which one should take into account. First of all, its transactions are private and untraceable. This is achieved using cryptographic algorithms, or in this case, the open-source CryptoNote technology. Transactions are not only untraceable, but they are also unlinkable. Moreover, there is no point in attempting any blockchain analysis on Bytecoin, as the results will be anything but satisfactory.
Furthermore, Bytecoin focuses on deflation, which means the coins themselves should become more expensive over time. There is a maximum emission limit of 184.47 billion BCN, of which 183.676 billion are in circulation as of right now. With the BCN block reward decreasing every 120 seconds, it is evident there will be a point at which this currency can no longer be mined. However, this will be a gradual process, and the mining aspect will not suddenly disappear.
Given the privacy-oriented nature of Bytecoin, it is also important to note that BCN miners cannot access users’ financial data, which is something one doesn’t find in most privacy-oriented currencies. Additionally, the Bytecoin API provides support for multisignature solutions which will provide an additional degree of security for those who prefer it. The team hopes to combine self-regulation with openness, while still respecting individual users’ privacy. It is a major challenge, but so far, things have fallen into place rather nicely.
The Future of Bytecoin
A few days ago, the Bytecoin team provided an update on what the future holds for this currency. We will see a new public API and a hard fork, as well as the release of a new public testnet. The hard fork introduces dynamic fees and will deconstruct the old API. There is also a big marketing push focusing on the Asian, Middle Eastern, and African markets. All of this should eventually lead to getting listed on new exchanges over time. The team is also working on a payment plugin processor, although no official time frame has been announced for that particular project.