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What is Bytecoin?


Bitcoin is a digital, decentralized, and open source privacy digital currency that allows anyone to plan their network development. Bitcoin is a financial solution for all those who care about privacy. The Bitcoin blockchain provides users with international, instant and private transactions free of charge and without the possibility of tracking.

Although the project had great potential, it has not been updated by developers for a long time now, and its position in the digital currency market has plummeted. In the following, we will examine bitcoin in more detail.

What is Bitcoin (BCN)?

The history of bitcoin begins in July 2012 (July 91) and coincides with Monroe, another famous Prius coin, which is a fork of bitcoin. Bitcoin’s goal and mission is to develop a new, advanced and efficient financial system that provides better and more services to users while reducing their costs. The bitcoin coin is known by the symbol BCN.

The bitcoin network is based on the following principles:

Self-regulatory: The bitcoin financial system is a decentralized network that allows the user to control the costs required for foreign exchange operations. Bitcoin self-regulation allows for optimal performance when operation efficiency is greater than ever.

Availability: Bitcoin manages and manages game development networks; This means that every user who joins this network uses this currency and supports the system.

Open text: Bitcoin invests in a network that everyone can contribute to; This means that any user who joins this network can use and support this currency.

Equality: The network protocol is developed to provide integrated performance for dedicated and non-dedicated computers on the network.

Who can use Bitcoin?

The three main market components, customers, businesses and investors, can benefit from bitcoin services.

Ordinary users and customers They can use Bitcoin to store their transactions securely, make international payments for free and instantly, have the most anonymity in transactions, and assist the network by extracting Bitcoin using a regular computer. . The production rate of bitcoins is declining over time, and as a result, the price of BCN coins is likely to stabilize.

Businesses They can use bitcoin solutions for organizations that promote open and fair business ideas. These businesses can send and receive global transactions instantly and free of charge, while enjoying high network resistance to hacking and protecting the privacy of their companies and customers. It should be noted that this system, as part of its anti-fraud policies, prevents the automatic return of money after a transaction, although this can sometimes act like a double-edged sword.

InvestorsBitcoin companies also have the opportunity to invest their assets safely and privately and receive their annual profits in the form of bitcoins and dollars. Large investors can also benefit from special offers.

How does bitcoin work?

Bitcoin is built entirely using CryptoNote. Kryptonote is an open source, powerful, privacy-focused application layer protocol. Unlike many projects, bitcoin has nothing to do with bitcoin, except that its creator team tries to resolve all bitcoin-related issues and problems in bitcoin, using user privacy, anonymity, and transactions without Fees are focused. Anyone can join the network by buying or extracting bitcoins from exchanges.

The type of transactions, reliability, inflation, and how new coins are issued are other special features of Bitcoin that we will examine in the following.

Bitcoin Coin Transactions

All transactions on the Bitcoin network are completed within 120 seconds. Each BCN transmission is encrypted with secure encryption algorithms. These algorithms do not allow anyone to know the origin, destination and amount of the transaction. In the bitcoin network, transactions are done through blockchain. In this way, there is no need for intermediaries such as banks, payment gateways and conventional systems. All the user needs is an internet connection.

Blockchain Many digital currencies, such as Bitcoin, store transaction history in a general ledger, and anyone can track transaction history between wallets. But bitcoin transactions are undetectable and immutable, and it is not possible to determine the relationship of the transactions to the addresses. This is possible through a single signature ring ring and a pair of keys (private key / public key).

Public one-time keys solve the problem of reusing an address. This feature mixes identifiable funds with other coins to interrupt the transaction sequence to the recipient and sender. The Circular Signatures feature also puts your unique signature among a collection of other users’ randomly selected signatures. It is impossible to detect your login except for users whose signature is in the same circle.

Bitcoin users can control the level of confidentiality of their signature. Obviously, the more anonymity you want, the more resources are consumed from the network and the higher the transaction fee.

Bitcoin Coin Network Security

Like most blockchains that are completely decentralized, network security relies on the computing power of all the computers in the system. The higher the processing power, the higher the security. In this regard, the security of funds stored in bitcoin wallets is automatically provided by the network.

Bitcoin uses the “equation proof” consensus algorithm. This algorithm uses a lot of device memory and makes the performance of GPUs less than CPUs. This design has been deliberately chosen to ensure that the game conditions for those who mine with CPU are equal to those of miners using powerful GPU and ASIC devices.

Production of new coins and inflation

The total supply of coins in Bitcoin is limited to 184,740,000,000 units. Currently, 184,066,828,814 coins have been extracted from this number, or more than 99% of the byte coins.

Anyone can join the bitcoin network as an extractor. Miners verify the accuracy of all transactions and protect information about transactions and individuals. In this network, miners can not access users’ financial information.

Each block in the bitcoin china block is extracted in 120 seconds, and after each block is extracted, the block reward is reduced. Gradual reduction of the reward causes the extraction reward to be halved after almost 4 years. On paper, as the number of coins produced decreases, bitcoin inflation also decreases over time.

However, there is a common view that in blockchains such as bitcoin and bitcoin, where the block reward decreases over time, the miners gradually leave the network, and a decrease in computing power makes the network vulnerable. Of course, the bitcoin website claims that this is not an important issue for the bitcoin blockchain; Because unlike bitcoin, in the bitcoin network the block reward is gradually reduced.

Extract bitcoins

As mentioned earlier, bitcoin is a digital currency that is extracted by the CPU‌ using the equation proof algorithm. This way, it can be easily extracted using a personal computer. Block rewards decrease after every 120 seconds, and so far more than 99% of coins have been mined and put into circulation. Anyone can participate as a miner in bitcoin mining.

Network stiffness varies according to the hash rate. These changes allow the network to maintain the speed of production of new blocks regardless of network congestion and the number of miners.

The size of each transaction is unlimited; But larger transactions require higher fees. Each bitcoin miner can arbitrarily set a limit on the size of the extracted block. The final limit for each block is twice the average of the previous blocks. In addition, each bitcoin user can vote to determine the size of the Blockchaink. There is also a penalty for creating very large blocks, which reduces the bonus for all large blocks.

Margins around bitcoin

From the earliest days of Bitcoin, the project has been the subject of much controversy. The first margin was that 82% of BCN coins were pre-extracted before public release. Riccardo Spagni, Monroe’s chief development officer, said:

The fact is that before the public offering of bitcoins, 82% of bitcoins were pre-extracted, and this is not just a rumor. Even if this is not malicious, it still means that 82% of the coins are in the hands of unknown people. This basically focuses on a decentralized digital currency project.

Such a high level of centralism means that this Quinn is subject to manipulation by developers. Before BCN was listed on Bainance, its trading volume was very low, which also raises the issue of price manipulation.

BCN’s listing on Bainance was not without controversy. All the major exchanges that supported BCN were forced to suspend transactions, deposits and withdrawals due to the unusually high load on the network. This created a bitcoin coin bubble in Bainance, while many investors could not cash in their coins. It was not long before some investors accused Bitcoin of manipulating the market.

A year earlier, the bitcoin blockchain had another problem; Infinite inflation bug. Apparently, all digital currencies based on the kryptonite protocol face a software bug that makes it possible to create an unlimited number of coins, making it impossible for people who are not very knowledgeable to identify them. In this way, someone was able to use this bug to generate one million dollars of bitcoins.

Spanish wrote in a tweet:

Within hours of the flaw being exposed in Kryptonite coins, 693 million bytes, or $ 1 million, were artificially generated.

The bottom line is that the Bitcoin development team is completely anonymous and has no interest in revealing their identities. Although it makes perfect sense to hide the identities of the developers of the Privacy Quinnas; But it certainly does not help the project progress. We only know the spokesperson for this institution, Jenny Goldberg. He also manages the Bitcoin community.

All of these problems have caused concern for Bitcoin co-sponsors and investors. Because of these issues, the Quinn has lost its leadership position among other privacy Quinns such as Monroe and Zeech.

Current status of the project

Despite all the controversy surrounding the project, the bitcoin team continued to operate. They regularly announced updates, plans, and partnerships with other projects.

But this dynamic trend does not seem to continue. The last update of the Bitcoin coin roadmap was published in March 2019 (March 97) on the official website. This roadmap outlines bitcoin plans for March to October 2019. But since then, no other updates have been published on the website. The last bitcoin Twitter post was published in December 2019. Bitcoin developers seem to have forgotten about the project for months.

The state of the bitcoin market is not well defined. This coin is more than 99.3% away from its peak price and has been removed from the list of transactions of many reputable exchanges.

Bainance removed Bitcoin from its trading list on October 8, 2018. A few days later, the OKEx exchange also removed the coin from the list of transactions by issuing statements. The exchange office’s statement stated:

Our regular monitoring of Bitcoin has shown that the project is exposed to a number of important technical issues that have not been addressed. To protect the interests of OKEx users, all BCN‌ related pairs will be removed from this exchange and all bitcoin deposit and trading services will be terminated.

Conclusion

Bitcoin is a decentralized digital currency and is the first major digital currency project to focus on user privacy. In addition, transaction fees in this network are very low.

This digital currency was one of the most promising projects launched in the early years before large coins such as Ethereum, and there was great hope for its development. But controversy surrounding the project, technical glitches, its removal from reputable exchanges, and the inattention of developers to new updates have pushed Bitcoin out of the spotlight, with prices dropping more than 99 percent. However, investing in this digital currency and extracting it is very risky, and anyone who intends to invest in it, should be fully aware of the ambiguous situation of this project and accept its risks.

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