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.

RELATED TERMS
  1. Monero

    Monero is a digital currency that offers a high level of anonymity ...
  2. Premining

    Premining is the mining or creation of a number of crypto coins ...
  3. Sharding

    Bitcoin, the original cryptocurrency, suffers from serious drawbacks.
  4. Trillion Dollar Coin

    A gimmick or good idea? The trillion dollar coin is a theoretical ...
  5. Altcoin

    Altcoins are alternative cryptocurrencies launched after the ...
  6. Mining

    Mining validates transactions on the cryptocurrency network and ...
Related Articles
  1. Tech

    How to Find Your Next Cryptocurrency Investment

    It’s hard to predict which coins will receive the most attention and why.
  2. Tech

    $9 Million Lost Each Day In Cryptocurrency Scams

    Cryptocurrencies remain soft targets for scam artists and hackers.
  3. Tech

    Cryptocurrency Trading Is The Second Most Common Investment Scam In Australia

    The Australian consumer watchdog says cryptocurrency trading is the second most common investment scam in the country.
  4. Tech

    Investing in Cryptocurrencies: What to Keep In Mind

    Here are some important pointers when considering investing in crytocurrencies.
  5. Tech

    The 5 Weirdest Cryptocurrencies

    These new digital coins exhibit vastly different technological capabilities and applications than bitcoin.
  6. Tech

    Beware of these Five Bitcoin Scams

    We look at five bitcoin scams and how to protect yourself from fraud.
  7. Tech

    Winners Among The Top 10 Most Traded Cryptocurrencies

    The top 10 most-traded cryptocurrencies accounted for as much 96.5% of overall market cap at the beginning of 2017.
  8. Tech

    Top Bitcoin Myths

    Even as digital currencies' popularity grows, some myths have proven difficult to shake.
  9. Tech

    How to Identify the Next Big Cryptocurrency

    As new bitcoin millionaires are minted, investors are looking for the next big thing in cryptocurrencies.
  10. Tech

    Cryptocurrency Market Cap Reaches Record High of $30 Billion

    The market capitalization of all cryptocurrencies continues to grow at an incredible rate.
RELATED FAQS
  1. What are the advantages of paying with Bitcoin?

    Learn how payments made with Bitcoins offer certain advantages over standard currency, including user anonymity, no taxation ... Read Answer >>
  2. What are the top Social Security scams targeted at the elderly?

    Prevent Social Security scams by learning to recognize the most common types of scams that target senior citizens receiving ... Read Answer >>
  3. How does a pump and dump scam work?

    A pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once ... Read Answer >>
  4. What Are the Most Common Social Security Scams?

    Learn about some of the most common Social Security scams that occur by phone, email and direct mail, Find out how to report ... Read Answer >>
  5. Can I invest in gold or silver with my Roth IRA?

    Learn how you can purchase gold coins and bars with your Roth IRA, or how you can diversify part of your assets by purchasing ... Read Answer >>
Trading Center