Last updated on January 2nd, 2018 at 12:00 am
Among the great number of cryptocurrencies, only a few offer an anonymous transactions feature, and only a small fraction of those few are actually able to deliver. Bytecoin (BCN) is a new generation digital currency based on the CryptoNote technology to take anonymity to a whole new level.
Bytecoin is a project that was created from scratch, and incorporates all the best Bitcoin has to offer, while taking into account all previous mistakes.
With its launch in 2012, the coin has gone through multiple stages of growth, and has reached a level of maturity few other cryptocurrencies have survived to see. It has remaining one of the most stable cryptocurrencies, with a steadily growing community, and highly reliable team of developers. The egalitarian PoW algorithm used in Bytecoin presupposes a fair distribution of currency. It is worth noting that Bytecoin is the first of its kind with a number of forks spawning in the course of 2 years, namely: FantomCoin, QuazarCoin, Moneta Verde and others. The backbone technology behind Bytecoin is CryptoNote; the platform allowing for creation of absolutely anonymous cryptocurrencies.
How is Bytecoin Anonymous? What Makes It Valuable?
What makes Bytecoin unique is the Ring Signatures technology embedded in the CryptoNote protocol.
The ordinary digital signature verification process involves the public key of the signer. The signature actually proves that the author has the corresponding secret key. That is the way technology is implemented in Bitcoin, as well as most of its forks, and nearly every other cryptocurrency.
Ring signatures, on the other hand, are a more sophisticated scheme. These signatures requires a number of different public keys for verification. To make it plain and clear, by ring signatures we understand a group of individuals, each with their own secret and public key. The signer of a given transaction is an undistinguishable member of the group. The main difference with the ordinary digital signature schemes is that a verifier cannot establish the exact identity of the signer.
With the most recent update the multi-signatures feature has now become available to the Bytecoin users. Using multi-sigs will let you organize secure payments in a variety of creative ways. Some of the types of transactions enabled by this ingenious solution are an escrow service where a trusted 3rd party acts as an intermediary between the two parties involved in a transaction. Introduction of multi-signatures into the Bytecoin framework creates limitless opportunities for the wide array of services to be seamlessly embedded into the the Bytecoin ecosystem.
Bytecoin may not be as publicized as some of the other “anonymous” cryptocurrencies, but it certainly has great potential. When others have been working on building their currency to be more attractive, or to satisfy a wide range of users, the Bytecoin team has been tirelessly working to perfect Bytecoin’s anonymizing technology. At the same time the community has been allowed to grow organically, with users who understand the currency, and know why it is the right choice for their needs.