Bytecoin

The Bytecoin cryptocurrency was launched in 2012. This is the first implementation of the Proof-of-Work algorithm by CryptoNote at that time. It is an algorithm that allows us to effectively perform mining on GPU and CPU. Much attention is paid by Bytecoin developers to confidentiality. A maximum of 184.47 billion Bytecoin can exist. They appear through mining, the size of the Bytecoin award for calculating the block signature is gradually reduced. Like in Bitcoin and many other cryptocurrencies, the difficulty parameter depends on the activity of miners.

Bytecoin relies on the system of public crypto nodes to confirm transactions. Each installed Bytecoin wallet becomes a lightweight public node. The transaction is moved between light free nodes until it reaches the full Bytecoin node. After a deep check of a transaction, the complete Bytecoin node writes it to the blockchain, if the transaction meets the requirements. If a transaction doesn't pass a deep check, the full Bytecoin node rejects it.

The Bytecoin cryptocurrency supports Merged mining. This means that when Bytecoin is mined it is possible to perform parallel mining of other cryptocurrencies based on the CryptoNote algorithm. Although Bytecoin has been protected from mining for a long time by an ASIC, over time there are ASICs that allow mining this cryptocurrency. Unlike Bitcoin, the Bytecoin block size is not strictly defined by the algorithm but varies. To prevent miners from making blocks too big, there is a fine for creating especially large blocks. The cryptocurrency developers have tried to avoid hard constants and hard numbers in the code.

Any new transaction between Bytecoin nodes uses a one-time-key based on a random number. Thus, several transactions sent by the same blockchain nodes provider are unrelated to the external observer. The ring signatures system is also used in the Bytecoin network. The user forms a group of several free nodes. For this purpose, other crypto nodes are added to the public node that sends a transaction. The public keys of all crypto nodes and the sender's private key create a payment scheme with reliable anonymity. Since all public keys are equal for the external observer, he will not be able to determine which Bytecoin node was the actual sender of the signed transaction. In order to avoid double-spending of the same funds, a cryptographic technology called key imprint is used. Having a key imprint at your disposal, it is not possible to recover the key. At the same time, two different keys cannot have identical imprints. The developers have also paid attention to Bytecoin's resistance to blockchain cryptographic analysis. Each subsequent transaction from the same address only additionally obfuscates the viewer.

Bytecoin has better blockchain scaling capabilities than Bitcoin. Regular software updates are available for Bytecoin nodes and Bytecoin wallets. There is a powerful API that allows you to easily and quickly set up Bytecoin payment acceptance on your website. With the API, developers can create their own blockchain-based mining and wallet applications. The Bytecoin source code has a modular structure. An experienced user can customize cryptocurrency to his preferences. Bytecoin supports multisignature functionality. Thanks to multisignatures it is possible to freeze funds until several participants agree to the terms of the deal. Based on multisignatures escrow services, foundation board wallets, and other services are created.