Whitepaper - Bytecoin with cover
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BYTECOIN WHITEPAPER
What is <strong>Bytecoin</strong>?<br />
<strong>Bytecoin</strong> is an open decentralized cryptocurrency. Anyone<br />
interested can join <strong>Bytecoin</strong> network and take part in<br />
currency development. As well as the Internet, <strong>Bytecoin</strong> is<br />
international by its nature.<br />
<strong>Bytecoin</strong> allows safe and secure transactions around the<br />
globe and offers the convenience of instant fee-free money<br />
transactions.<br />
In order to distinguish <strong>Bytecoin</strong> network from <strong>Bytecoin</strong><br />
currency, the latter is referred to as BCN. For instance,<br />
current <strong>Bytecoin</strong> emission rate is 65,000 BCN each 120<br />
seconds.<br />
Join <strong>Bytecoin</strong><br />
<strong>Bytecoin</strong> is an open cyptocurrency. Therefore anyone<br />
willing can become a user of the currency and voluntarily<br />
take part in operation of the network. The only thing you<br />
need to do is to download special software that will create<br />
a wallet for you. With help of this software you will be able<br />
to send money to other users and receive payments from<br />
them.<br />
<strong>Bytecoin</strong> algorithms don’t allow other users to know your<br />
wallet balance, to whom you send money and where you<br />
receive your funds from.<br />
You can take part in operation of the network by allocating<br />
computing power of your computer. Due to this<br />
mechanism, transaction processing is decentralized, which<br />
allows a person to be not only a user, but also a participant.<br />
There are two ways to obtain <strong>Bytecoin</strong>s. You can take part<br />
in network maintenance and get a reward for it, or buy<br />
BCN directly on exchanges.
<strong>Bytecoin</strong> Transactions<br />
Fiat money transactions between people are carried out<br />
through an intermediary, a bank or financial institution.<br />
Transaction reliability is guaranteed by an agent who<br />
conducts the transaction.<br />
Transactions between <strong>Bytecoin</strong> users are carried out<br />
through the Internet. Transaction privacy is protected by<br />
secure cryptographic algorithms whereby no one can<br />
identify who sent the money, who the receiver was, and<br />
what amount of money was transferred.<br />
<strong>Bytecoin</strong> transactions processing is done by the whole<br />
network of users. Yet no participant has access to the<br />
transaction details. All transfers are fully anonymous.<br />
The transactions processing requires a considerable<br />
amount of computational resources. Those users who<br />
joined the network may allocate time of their computers<br />
for transaction processing. As a reward they receive BCN.<br />
Such process is called mining.<br />
<strong>Bytecoin</strong> Emission<br />
Emission of fiat currencies is a closed process where an<br />
issuer is engaging its own capabilities. One can’t take part<br />
in the emission process.<br />
<strong>Bytecoin</strong> emission is an open process which employs<br />
computing powers of all network members. Any user can<br />
join the <strong>Bytecoin</strong> network and take part in the emission<br />
process (thus, becoming a miner).<br />
Mining in the network results in creation of new money,<br />
which serves as the reward for users who employ their<br />
computing power in order to process transactions.<br />
All transactions are carried out each 120 seconds. Miners
ensure that the transactions are processed correctly and<br />
provide cryptographic protection of transactions and<br />
personal data. However, miners cannot access users'<br />
financial data since <strong>Bytecoin</strong> protects the identity of the<br />
sender and the receiver, and conceals the sum transferred.<br />
As a reward, miners receive roughly 65,000 BCN each 120<br />
seconds. Such approach allows both new money emission<br />
and zero-fee transactions.<br />
Deflation<br />
<strong>Bytecoin</strong>s are gradually getting more expensive over time,<br />
since the emission is limited to 184.47 billion BCN. The<br />
number of <strong>Bytecoin</strong> emitted each 120 seconds is slightly<br />
decreasing. As a result BCN gains value and exchange rate<br />
increase.<br />
While currencies <strong>with</strong> sharp decrease of reward per block<br />
are exposed to intense declines in network power, <strong>Bytecoin</strong><br />
emission is decreasing slowly, which protects the currency<br />
from economic shocks.<br />
Geographic region<br />
Fiat currencies are assigned to specific territories while<br />
<strong>Bytecoin</strong> is bound to the Internet and therefore is<br />
international by its nature.<br />
<strong>Bytecoin</strong> has formed its own network that consists from<br />
users who use <strong>Bytecoin</strong> for mutual settlements. <strong>Bytecoin</strong><br />
network is open and anyone willing to join is welcome to<br />
become a user of <strong>Bytecoin</strong> currency.<br />
Safety and reliability<br />
The reliability of <strong>Bytecoin</strong> is defined by total computational
power of all the computers that take part in transactions<br />
processing. The greater the processing power, the more<br />
reliable the network.<br />
In so doing all money stored in your wallet is already<br />
protected during the transaction processing and the safety<br />
doesn’t depend on network reliability. Your money is safe<br />
anyway.<br />
How <strong>Bytecoin</strong> works<br />
John has 30 BCN in his wallet. He wants to order pizza<br />
delivery to his place which costs 1 <strong>Bytecoin</strong>, taxes and<br />
delivery included.<br />
John places an order on the website. Right after that he<br />
receives 1 BCN bill that contains the pizzeria <strong>Bytecoin</strong><br />
wallet address. John broadcasts the following instruction to<br />
the <strong>Bytecoin</strong> network: send 1 BCN from John_address to<br />
pizzeria_address.<br />
Once each computer in the network receives this<br />
insutruction it checks whether this BCN John wants to<br />
transfer actually belongs to him. However a computer can’t<br />
find out neither who transferred this BCN to John, nor his<br />
balance. A computer simply checks conformity of sender’s<br />
signature. It has no access to personal data.<br />
Each computer in the network collects the transactions that<br />
need to be processed and packs them up in a block. Each<br />
block should comply <strong>with</strong> specific rules, which is a difficult<br />
task to solve. Hence, each computer in the network works<br />
on calculating suitable transaction block form. This is<br />
required to protect the network from transaction forgery.<br />
At some point one of computers in the network may be<br />
lucky to find the correct block structure. Then this<br />
computer puts the block into its blockchain file, which
epresents the database for all performed transactions.<br />
Then this computer broadcasts the new block to all other<br />
computers in the network so that they could also update<br />
their blockchain files. The transaction is completed and the<br />
owner of the computer that was the first to find the correct<br />
block structure gets a reward.<br />
After the transaction is done, 1 BCN belongs to pizzeria and<br />
no longer to John. The <strong>Bytecoin</strong> blockchain contains all data<br />
required for pizzeria owner to use this 1 BCN for his own<br />
goals.<br />
This whole process takes about than 2 minutes, and the<br />
pizzeria owner will get paid before he even starts to cook<br />
John's pizza. Moreover, in order to get paid <strong>with</strong> <strong>Bytecoin</strong>s<br />
he only needs a computer <strong>with</strong> the Internet access. No fees,<br />
no intermediaries.<br />
You can easily convert <strong>Bytecoin</strong>s into U.S. dollars and vice<br />
versa through the exchanges.<br />
<strong>Bytecoin</strong> specification<br />
Block time: 120 seconds. It takes 120 seconds to check the<br />
authenticity of a transaction and process it. This time is<br />
used to apply cryptographic algorithms, and make the<br />
payments secure.<br />
Total coins: 184.47 billion BCN. <strong>Bytecoin</strong> emission is<br />
limited. Each 120 seconds a new batch of roughly 65,000<br />
BCN is emitted and distributed between miners as reward<br />
which makes zero-fee transactions possible.