What Is Bytecoin?
Bytecoin (BCN) is the first cryptocurrency based on the CryptoNote technology and launched in July 2012 with an open source code designed for anonymous cash settlement. BCN protects the user's privacy with impassive and anonymous transactions.
This is a completely independent currency, developing separately from Bitcoin and its forks. The basis for the creation of Bytecoin was the unique CryptoNote technology. It uses the unique CryptoNight algorithm. The essence of the algorithm is in the ring signature, which provides the maximum program anonymity for today. The cryptographic basis for the protocol was created by Ron Rivest, Adi Shamir and Yael Taumann in 2001, and finalized by E. Fujisaki and K. Suzuki in 2007. The EdDSA scheme proposed by the American mathematician Daniel Bernstein is used as the signature algorithm. Additional transaction obfuscation was added to this basis.
Bytecoin (BCN) was founded on July 4, 2012. Since the launch, several improvements have been made, including multi-valued transactions and several security updates. In 2013, the original implementation of CryptoNote Java was rewritten using C++. As of 2015, Bytecoin has been forked more than 25 times. Bytecoin blockchain contains additional information not directly related to remittances: several blocks include the geographical coordinates of universities, educational institutions among other buildings. Blocks created since August 11, 2012, contain quotes from Cyphernomicon, Neuromancer William Gibson and other authors.
Beginner's Guide to Bytecoin
Where and How to Buy Bytecoin?
Where to Buy Bytecoin with Credit Card?
Where to Buy Bytecoin with PayPal?
How to Buy Bytecoin with Wire Transfer?
Where to Sell and Trade Bytecoin?
How Much Are the Transaction Fees of Bytecoin?
Value of Bytecoin
Is It Profitable to Invest in Bytecoin?
Where to Spend or Use Bytecoin?
Can Bytecoin Grow to Become a Major Payment Network?
If Bytecoin will ever grow to become a major payment network will ultimately depend on how well Bytecoin competes with other, already established payment methods—cash, checks, debit and credit cards, PayPal, and others. Bytecoin solves the problem of making payments in a trustless environment, but it is not obvious that this is a problem that needs solving, at least in advanced economies. And solving that problem creates others. One is scalability; the process of picking random validators takes time, is expensive, and consumes tremendous amounts of energy.
Another current issue is the volatility in the value of Bytecoin which makes it less useful as a currency. This volatility is an inherent feature by design. Since there is no central bank that adjusts the supply of Bytecoin to accommodate changes in demand, Bytecoin's value can swing sharply with demand. In a world where all things were priced in Bytecoin, this would likely translate into massive swings in inflation and economic activity. In contrast, providing an "elastic" currency to promote financial and price stability is a goal shared by the Federal Reserve System, the European Central Bank, the Bank of Japan, and many other central banks.
The trust-proofing provided by Bytecoin also comes at the expense of another key feature of a payment method: convenience. If we lived in a world without trust, Bytecoin might dominate existing payment methods. But in this world, where people do tend to trust financial institutions to handle payments and central banks to maintain the value of money it seems unlikely that Bytecoin could ever be as convenient as existing payment means.
That said, Bytecoin and other cryptocurrencies are trying to improve scalability and convenience so perhaps in the future one of these cryptocurrencies could realistically compete with current payment methods. A payment method designed to function where trust in institutions is completely absent can maybe never be as convenient as one where trust is required, but also already exists.
As of now Bytecoin has not attained the relative stability of value to make it useful as money for everyday transactions. The current set of government-issued fiat currencies - such as the dollar, yen and the euro - provide efficient media of exchange, stores of value and units of account.
In addition local legal tender money tends to be a natural monopoly with only extreme hyperinflation leading people to seek out a monetary alternative.
How Does Bytecoin Work?
Does Bytecoin Use Blockchain Technology?
What Are the Advantages of Bytecoin?
What Are the Risks of Bytecoin?
What Happens if Bytecoin Gets Lost?
Summary of various regulatory actions and statements regarding cryptocurrencies
Is Bytecoin Legal?
Bytecoin and Taxes
Bytecoin is not a fiat currency with legal tender status in any jurisdiction, but often tax liability accrues regardless of the medium used. There is a wide variety of legislation in many different jurisdictions which could cause income, sales, payroll, capital gains, or some other form of tax liability to arise with Bytecoin.
Does Bytecoin Have a Consumer Protection?
Illegal Activities with Bytecoin
Bytecoin has a value, and valuable things have always been attractive both for legal and illegal purposes. Any form of currency has illegal users, Bytecoin is no different in this regard. Cash, credit cards and current banking systems widely surpass Bytecoin in terms of their use to finance crime. Bytecoin can bring significant innovation in payment systems and the benefits of such innovation are often considered to be far beyond their potential drawbacks.
Bytecoin are completely impossible to counterfeit. Users are in full control of their payments and cannot receive unapproved charges such as with credit card fraud. Bytecoin allows money to be secured against theft and loss using very strong and useful mechanisms such as backups, encryption, and multiple signatures.
Some concerns have been raised that Bytecoin could be more attractive to criminals because it can be used to make private and irreversible payments. However, these features already exist with cash and wire transfer, which are widely used and well-established.
But criminals, who typically use cash for the anonymity and security it provides, may be moving to cryptocurrencies. The US Drug Enforcement Administration reports a sharp decline in bulk cash smuggling in 2016, which is the traditional payment method for drug shipments and suggests that payments may have shifted toward cryptocurrencies. Cryptocurrencies are more convenient than cash for many illegal activities that now take place online.
More broadly, cryptocurrencies are ideal for circumventing legal or regulatory authorities, because they aren’t governed by any. Some rogue states are reportedly responsible for state-sponsored hacks to steal cryptocurrencies, which help bypass economic sanctions that are enforced through the cooperation of financial institutions and countries.
Is Bytecoin Secure?
Is Bytecoin Anonymous?
Has Bytecoin Ever Been Hacked?
How Can I Restore Bytecoin?
Why Do People Trust Bytecoin?
It has long been known that currencies that are intrinsically worthless, mere pieces of paper, are recognized as valuable because payments with money are so much easier than the alternative, barter. The problem with barter, when everyone trades goods and services directly, is the dreaded "double coincidence of wants." If you want to buy toys for your child and you are a chicken farmer, and the toyshop is not interested in trading toys for chickens, you have to keeping searching until you find a toyshop where they accept chickens as payment.
Money, even intrinsically worthless paper money, cuts the "double coincidence" problem in half. You just need to find someone willing to pay you some of that paper for your chickens, then use that paper to pay for the toys. As long as there is trust that someone will accept the paper, you will be willing to accept it in exchange for your chickens. It is trust that the "worthless" piece of paper is actually worth something to other people that makes it an acceptable medium of exchange. It is the same with Bytecoin, if there is no trust in it, there is no value. As a result, the value of Bytecoin fluctuates with news that vendors or firms accept or decline the Bytecoin as a mode of payment. Trust is implicit for practically any means of payment.
The U.S. dollar is not backed by gold (or silver) and is therefore a fiat currency, which is inconvertible paper money made legal tender by a government decree.
The obvious question is, "Without gold, what does guarantee the value of our money?" The answer is: nothing at all. The only reason a dollar, a Yen, or a Euro has any value is because we have a stable system in which people are known to accept these pieces of paper in return for something valuable. Or, as Nobel Prize-winning economist Milton Friedman puts it, "the pieces of green paper have value because everybody thinks they have value." The value is the confidence people have in what the currency represents.
A fiat currency is legal tender whose value is backed by the government that issued it. The U.S. dollar is fiat money, as are the euro and many other major world currencies.
This approach differs from money whose value is underpinned by some physical good such as gold or silver, called commodity money. The United States, for example, used a gold standard for most of the late 19th and early 20th century. The U.S. dollar - as well as many public and private debts - could be converted into gold until the mid-1930s, and the U.S. dollar was tied to the value of gold until the early 1970s, when President Nixon completely severed the relationship between the U.S. dollar and gold.
A fiat currency's value is underpinned by the strength of the government that issues it, not its worth in gold or silver. Currency is a tool of trade. People tend to hoard gold and silver when things are uncertain, and that's harmful when it limits currency flows on a large scale. Removing the relationship between a currency and commodity doesn't create "worthless money."
Bytecoin entails both a new technology, Blockchain, and a new currency. The new shape and form of the Bytecoin market in the future will likely depend on what economic value Bytecoin is perceived to add.
Trusting the maths of Bytecoin makes sense. Most of the computer code behind it is publicly available, meaning it has been checked over by lots of programmers. The algorithm that limits the supply of coins also verifies transactions.
People trust Bytecoin because it is run by the people who use it, not a government. It is not regulated by world authorities or banks. Bytecoin provides you with a way to have more control over your money. Money is only spent when you want it to be. There are no interest rates or fees with peer to peer Bytecoin transactions. For people who have a difficult time trusting banks, this is an optimal alternative.
With Bytecoin, you can also make secure transactions all over the world. Bytecoin is secure. Once a transaction goes through, it cannot be undone or removed. It is immediately recorded on the block chain.
History of Bytecoin
Who Created Bytecoin?
Bytecoin Videos and Tutorials
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