What is Bytecoin? Learn all about BCN!

What is Bytecoin? In 2012 Bytecoin (BCN) was introduced to the market. It is one of the oldest altcoins. It was created as an open-source project by a group of anonymous programmers. This currency was developed from the original Bitcoin project.

However, Bytecoin brought a number of innovations in relation to Bitcoin, especially on transaction anonymity features. In addition, this altcoin is different in terms of coin mining and transaction validation.

Its market capitalization value is $52,327,858 USD, which makes BCN the 81st largest cryptocurrency. In its eight years of existence, Bytecoin has gone through ups and downs. It could be a promising investment in 2020.

As part of Cripto InterCambio’s Crypto-Diversity Program we are going to explain what Bytecoin is. As part of this program, we offer the commission-free trading of selected altcoins, as well as exclusive content about them. We will list BNC’s main characteristics and discuss its investment prospects.

What is Bytecoin – Main Features

Decentralization

Bytecoin is also the name of the company responsible for the programming, development, and maintenance of this cryptocurrency. However, it has no control over the transactions made on its network.

As with most cryptocurrencies, its transactions are not verified by a central network. In fact, all transactions are made through a blockchain network which spans thousands of computers worldwide (the so-called “nodes“). In this sense, the Bytecoin system is very similar to Bitcoin.

Anonymity

The inability to track transactions made with BCN is undoubtedly the biggest difference of this cryptocurrency.

It is easier to understand this concept through the perspective of Bitcoin, whose transactions are not completely anonymous. All transactions made with Bitcoin are shown in a kind of public spreadsheet, which is used by the nodes to check their validity. There, transactions between virtual wallets are recorded.

This, in turn, makes transactions traceable. Although having a virtual wallet requires no registration, it is not very difficult to identify the IP address of a particular wallet. For this reason, the user’s real identity can be exposed.

With that in mind, the Bytecoin team thought of a different system. Instead of a public spreadsheet, BCN uses CryptoNote. Basically, when making a transaction with Bytecoins, keys are generated. These keys will be used by the nodes to validate the transactions.

But unlike Bitcoin, these keys are only used once. In addition, it mixes several transactions under the same key. In this way, it is virtually impossible to track from which wallet a particular transaction originated.

For users who want even more security, it is possible to add more than one key in the same transaction. However, this increases the cost.

Mining

Bitcoin mining gives the advantage to extremely powerful computers, which ends up favoring large investors and centralizing the network. 

In order to avoid this, Bytecoin uses the Proof of Work system. This is a mechanism similar to Bitcoin’s, where computers solve puzzles to validate transactions. However, such an algorithm limits the difference between extremely powerful computers and common PCs, allowing individual users to benefit from the mining process.

Because Bytecoin has been in circulation for a long time, approximately 99% of all BCNs have already been mined. This means that there are currently more than 184.000 million tokens in circulation in the crypto world and that new coins are rarely generated.

For this reason, the main way nodes benefit from this cryptocurrency is through network fees.

What is Bytecoin: is it worth investing in Bytecoin?

Is it worth investing in Bytecoin? As there is a large number of tokens available on the market, this is a cheap cryptocurrency: its price is $0.000281 USD per unit.

Bytecoin History

  • When this cryptocurrency was put into circulation, its value was $0.000055 USD per unit.
  • Between 2012 and early 2017, its price variation was relatively small, and BCN rarely exceeded $0.0001 USD.
  • In 2017, things began to change. As Bitcoin prices went up, other altcoins also increased in value. In May 2017, the currency reached a maximum of $0.0032 USD per unit.
  • Its historic high was during the so-called spring of the altcoins – after the explosion of the Bitcoin bubble in 2017. At that time, investors began to invest in other cryptocurrencies. In January 2018, BCN reached its all-time high: $0.016 USD per coin.
  • Also, during 2018, the BCN price collapsed to $0.0020 USD in April and rose again to $0.010 USD in May. This was the last peak.
  • Since then, BCN’s value has never returned to such high levels. 2019 was a difficult year for this currency. Then it began trading below $0.001 USD. This is its current situation.

Invest in Bytecoin in 2020

Bytecoin is a very old cryptocurrency, which reached peak price during 2017 and 2018. The 2019 bear market may seem daunting, but it is not impossible to reverse this trend.

The long history of this project is very relevant in this regard. Eight years have been reached by few. BCN operated at lower values than the current cryptocurrencies during its first five years of existence and it is still active. The cryptocurrency has a committed user community and is a consistent project that is constantly updated.

In fact, one could even speak of an undervaluation of this cryptocurrency today. Bytecoin has continued to improve its project, establish new partnerships, and achieve greater adoption despite its price drop. In this sense, the project possess positive elements for a short or medium-term price increase.

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