DEFINITION of Bytecoin
Bytecoin is a peer-to-peer cryptocurrency and blockchain. It was the first coin to use strong encryption features that mask identity and transaction details on a blockchain. Due to controversy regarding the distribution of coins from its total supply, detractors have charged Bytecoin with scamming its users.
BREAKING DOWN Bytecoin
Detractors Have Charged Bytecoin With Scamming its Users.
Bytecoin was launched in 2012 and uses a different blockchain than bitcoin, the original cryptocurrency. The first announcement pertaining to bytecoin’s existence appeared on the bitcoin talk forum in 2014. The cryptocurrency uses CryptoNight, a cryptography technology first developed in 2001. It uses ring signatures to anonymize cryptocurrency transactions by scrambling both the sender's and the recipient's public and private keys. Bytecoin has evolved CryptoNote’s technology by incorporating multisignature capabilities and enhanced security.
Bytecoin’s total supply is capped at 184.46 billion coins; the coins are produced every 120 seconds. However, by the time that it reached the public eye, bytecoin had already mined 150 billion coins (or, approximately 80 percent of its total supply). This led critics to accuse bytecoin of scamming its users. They cite the delay in announcing a launch date for bytecoin and pre-mined coins, which contravene democratic issuance principles for cryptocurrencies, as proof of its intention to scam users. Monero, a coin that shares its algorithm with Bytecoin and uses a fairer distribution system, was announced a month after Bytecoin.