Bytecoin is an open decentralized cryptocurrency. Anyone interested can join Bytecoin network and take part in currency development. As well as the Internet, Bytecoin is international by its nature.
Bytecoin allows safe and secure transactions around the globe and offers the convenience of instant fee-free money transactions.
In order to distinguish Bytecoin network from Bytecoin currency, the latter is referred to as BCN. For instance, current Bytecoin emission rate is 65,000 BCN each 120 seconds.
#1.Bytecoin Transactions
Fiat money transactions between people are carried out through an intermediary, a bank or financial institution. Transaction reliability is guaranteed by an agent who conducts the transaction.
Transactions between Bytecoin users are carried out through the Internet. Transaction privacy is protected by secure cryptographic algorithms whereby no one can identify who sent the money, who the receiver was, and what amount of money was transferred.
Bytecoin transactions processing is done by the whole network of users. Yet no participant has access to the transaction details. All transfers are fully anonymous.
The transactions processing requires a considerable amount of computational resources. Those users who joined the network may allocate time of their computers for transaction processing. As a reward they receive BCN. Such process is called mining.
#2. Deflation
Bytecoins are gradually getting more expensive over time, since the emission is limited to 184.47 billion BCN. The number of Bytecoin emitted each 120 seconds is slightly decreasing. As a result BCN gains value and exchange rate increase.
While currencies with sharp decrease of reward per block are exposed to intense declines in network power, Bytecoin emission is decreasing slowly, which protects the currency from economic shocks.
#3. Safety and reliability
The reliability of Bytecoin is defined by total computational power of all the computers that take part in transactions processing. The greater the processing power, the more reliable the network.
In so doing all money stored in your wallet is already protected during the transaction processing and the safety doesn’t depend on network reliability. Your money is safe anyway
#4 How Bytecoin works
John has 30 BCN in his wallet. He wants to order pizza delivery to his place which costs 1 Bytecoin, taxes and delivery included.
John places an order on the website. Right after that he receives 1 BCN bill that contains the pizzeria Bytecoin wallet address. John broadcasts the following instruction to the Bytecoin network: send 1 BCN from John_address to pizzeria_address.
Once each computer in the network receives this insutruction it checks whether this BCN John wants to transfer actually belongs to him. However a computer can’t find out neither who transferred this BCN to John, nor his balance. A computer simply checks conformity of sender’s signature. It has no access to personal data.
Each computer in the network collects the transactions that need to be processed and packs them up in a block. Each block should comply with specific rules, which is a difficult task to solve. Hence, each computer in the network works on calculating suitable transaction block form. This is required to protect the network from transaction forgery.
At some point one of computers in the network may be lucky to find the correct block structure. Then this computer puts the block into its blockchain file, which represents the database for all performed transactions. Then this computer broadcasts the new block to all other computers in the network so that they could also update their blockchain files. The transaction is completed and the owner of the computer that was the first to find the correct block structure gets a reward.
After the transaction is done, 1 BCN belongs to pizzeria and no longer to John. The Bytecoin blockchain contains all data required for pizzeria owner to use this 1 BCN for his own goals.
This whole process takes about than 2 minutes, and the pizzeria owner will get paid before he even starts to cook John's pizza. Moreover, in order to get paid with Bytecoins he only needs a computer with the Internet access. No fees, no intermediaries.
You can easily convert Bytecoins into U.S. dollars and vice versa through the exchanges.
CONSIDERATION:
SHOULD YOU INVEST ON BCN?
Definetly NO!!
You probaly have read all this good things right now, and you are maybe thinking why not??
Bytecoin is dead, just another pump and dump. Never invest after the dump. If you want a cheap (sub $1) coin that's on the rise and has an active and responsive community then check out PIVX. Hang out on their Slack for a while and you'll be sold too.