How to Buy Bytecoin(BCN): A Complete GuideByteCoin joins a growing list of cryptocurrencies looking to replace the functionalities of fiat currencies in a decentralized way. However, unlike other virtual currencies in the market, it goes a long way in offering high levels of privacy and anonymity, an aspect that is becoming increasingly popular online.
- So what is ByteCoin?
- How to Buy ByteCoin
- How ByteCoin Works
- Mining of ByteCoin
- ByteCoin Features
- Bottom Line
So what is ByteCoin?
ByteCoin is a decentralized digital currency that focuses heavily on privacy and security. Simply put, it is an untraceable cryptocurrency, which uses CryptoNote signatures to ensure anonymous transactions. The privacy-focused crypto coin was created’ in 2012 and released to the public on March 2014.
Just like the core objective of the cryptocurrency, developers behind the Altcoin have remained anonymous. However, the team has gone on to make a number of improvements that have enhanced ByteCoin privacy-focused features. For instance, the cryptocurrency can now support multi-valued transactions supported by unique security features.
ByteCoin developer’s team has been working on improving a number of issues that have prevented people from using Bitcoin. Top on the agenda is fixing the privacy issues of the largest cryptocurrency by market cap.
The team is also hoping to address scalability issues that will make it possible for the Altcoin to support more transactions per second, thereby making it scalable in the ever-changing financial atmosphere.
How to Buy ByteCoin
There are several ways to buy ByteCoin using fiat currency. However, it is not possible to buy the Altcoin directly like Bitcoin and Ethereum in most cryptocurrency exchanges. Below is an easy tutorial on how to go about the same.
Create a Cryptocurrency wallet account
A digital wallet is a must as it is where cryptocurrencies are stored once bought from cryptocurrency exchanges. It is not advisable to leave cryptocurrencies in exchanges, as they are usually susceptible to hack attacks.
Given that ByteCoin is bought by exchanging it with other cryptocurrencies such as Bitcoin wallet, you will have to open a digital wallet that supports either bitcoin or Ethereum. One of the best, in this case, is MyEtherWallet.
Create a cryptocurrency Exchange Account
Once a digital wallet account is set up, you will have to create an account with one of the reputable cryptocurrency exchange. Such platforms provide an easy way of buying popular cryptocurrencies that can be used to purchase other digital currencies.
Coinbase is a perfect fit in this case as it is regulated by the U.S government and follows strict financial rules.
Once you have opened a Coinbase account, use your credit card or other payment options offered to buy some Ethereum’s from the cryptocurrency exchange. Once you have purchased, some Ethereum, be sure to transfer them to your digital wallet which in this case is MyEtherWallet.
Open an Account in an Exchange That Accepts ByteCoin
Once you have opened the account, find your ETH wallet address, as the details for finding can be different depending on the website. Copy or write the ETW wallet address in the BCN exchange account to transfer the Ethereum’s from your digital wallet.
When Ethereum appears in your BCN exchange account, you will now be able to exchange them for BCN tokens depending on the exchange rate and the total amount of Ethereum’s transferred. To complete the process, you will have to look for BCN/ETH trading pair to initiate a ‘Buy’ order with the ETH funds.
Once you initiate Buy Order, you should be able to buy some BCN.
You can also buy BCN using Bitcoin. In this case, open an account with Binance to be able to exchange bitcoins for ByteCoin. BitPanda is another platform that allows people to use Skrill money transfer to buy bitcoins or Ethereum, which is then exchanged for BCN.
Where to Store BCN
Once you have bought, BCN from you will have to find a secure a ByteCoin wallet to store the tokens as Cryptocurrency exchanges are always on hacker’s radar.
Desktop Wallet: Desktop are some of the best for storing BCN as they are compatible with Mac, Windows, and Linux. A desktop wallet can also be accessed from any web browser. Android users can also store their BCN holdings on a mobile wallet. The team is yet to release an iOS wallet.
Encrypted passwords accompanied with two-factor authentication should always be used with these wallets as an additional measure of keeping hackers at bay.
How ByteCoin Works
Transactions involving most cryptocurrencies are usually posted to a public ledger, making it possible for third parties to trace transfers between wallets. This is a deficiency’ that most privacy-focused cryptocurrencies like ByteCoin are trying to address.
By using a third-party tumbler to mix transactions, ByteCoin hopes to seal the loophole that makes it possible for people to trace transactions on a public ledger. To do so, all ByteCoin transactions are based on CryptoNote, a payment scheme that is completely untraceable.
The technology implements a ring signature technology, which allows anyone in a group to sign on behalf of a group. All possible signers are indistinguishable from each other. One-time ring signatures are usually mixed with other possible accounts on a network, thereby providing another layer of anonymity.
CryptoNote ensures untraceable transactions on a public ledger and unlinkable. Each transaction, in this case, uses a one-time public key, even if a person is conducting multiple transactions. The use of a one-time public key eliminates the problem of address re-use, familiar with other cryptocurrencies, thereby making it impossible to trace the origin of a transaction.
Mining of ByteCoin
The use of Proof-of Work algorithm increases the possibility of mining operations in cryptocurrencies being centralized’ among miners with powerful GPU and ASIC Machines. In a bid to ensure mining operations are entirely decentralized, ByteCoin relies on a new algorithm dubbed Egalitarian proof-of-work.
Egalitarian uses a version of the script, a proof of work function, similar to the hash cash function. Because the algorithm is not memory bound, it makes it easier and cheaper to produce highly efficient CPU mining rigs that anyone can use to mine ByteCoin.
Use of Proof Work Algorithm
ByteCoin being an open source software uses the Principle of proof-of-work for mining. The algorithm for mining in ByteCoin differs from others, as it uses AES command system for X86 microprocessors and a significant amount of memory.
The mining protocol also uses CryptoNote algorithm which provides the maximum program anonymity. All transactions in the stream are therefore anonymous, and all participants in the system can use plausible deniability in the event of capture.
Unlike fiat currencies, ByteCoin emission is an open process that employs the computing powers of all network members. Anyone can join the network with a substantial amount of computing power and be able to mine the token. Mining in the network results in the creation of new money and miners are normally rewarded for the addition of a new block on the blockchain.
Transactions on ByteCoin network are carried out every 120 seconds and miners ensure that transactions are processed correctly while providing cryptographic protection of transactions and personal data.
Given that ByteCoin is a privacy-focused Altcoin, miners cannot access user’s financial information while processing transactions.
The total number of ByteCoin coins that will ever be mined is currently capped at 184.47 billion. With the number of coins emitted every 120 seconds on a constant decline, the token appears to be getting expensive and becoming more valuable with each passing day.
ByteCoin emissions are decreasing slowly something that protects the currency from economic shocks
Transactions carried out using fiat currencies are normally processed using an intermediary which in most cases is usually a bank or other financial institutions. ByteCoin transactions, on the other hand, are carried out over the internet where there is no intermediary for privacy reasons.
ByteCoin network offers instant payments globally as it works as fast as the internet. Transactions are normally processed in about 2 minutes. Cryptographic algorithms that cannot be hacked secure user’s money.
Safety and Reliability
ByteCoin transactions are extremely reliable because computational power of all the computers in the network facilitate transactions. The network tends to be more reliable with an increase in the processing power.
ByteCoin is one of the best blockchain projects to take privacy and anonymity of cryptocurrency transactions to another level. The Altcoin is not a replacement of Bitcoin, but a digital currency that addresses some of the deficiencies of the popular cryptocurrency.
By implementing, the CryptoNote Protocol, ByteCoin continues to serve as a model for other cryptocurrencies looking to enhance transparency and anonymity when it comes to transactions on a blockchain. As the technology continues to evolve and advance, ByteCoin should continue to advance the privacy needs of users around the globe.