The world is generally tilting towards a digital economy through the use of modern technologies. This change has been embraced by most industries as a major rebranding process in order to keep up with the trend. The cryptocurrency network is one of the leading industries when it comes to digital assets and cryptocurrency investment. Its process of peer to peer sharing of digital coins and asset has made it highly valuable among investors.
The Bytom cryptocurrency is one of the cryptocurrencies that has made possible the tokenization of physical assets such as currencies, securities, bonds and dividends into a digital asset. This was made possible through the incorporation of its three-layer system in other to facilitate its digital asset exchange process. Before we look at the benefits of Bytom, we are going to examine the whole idea behind the Bytom cryptocurrency network.
What is Bytom Cryptocurrency?
Bytom cryptocurrency is an open source blockchain that was created by Chang Jia and Duan Xinxing in 2017. The duo was able to build Bytom cryptocurrency network to act as a leading platform for the exchange of digital assets as compared to other cryptocurrency networks. Their main goal was to transform physical assets into digital assets by registering them for the exchange process. The Bytom network was built into three different layers. These include:
- The Application layer – This is the end users interface like web and app with which the users interact with the Bytom network. This helps users to perform actions and trades in Bytom
- The Contract layer – This performs functions such as making sure the rules and protocols of the network are adhered to and also facilitates the trading of an asset between parties.
- The Ledger Layer – This layer act as the blockchain consensus which works by proof of work consensus algorithm.
Benefits of Bytom Cryptocurrency
1. A more secured peer to peer system
One area in which Bytom network has a leading advantage from other cryptocurrency networks is its mode of relaying security threats. Bytom’s team has designed its security gateways to carefully protect the three layers of its network by a series of stages. These stages include the reporting stage, processing stage, and repairing stage. Each stage acts as a gateway to check the level of threat to the system and the vulnerability of the network to the threat. When any bug or threat is reported to Bytom security network, its technical team will check for its level of threat. They then fix the problem by repairing any threat that might pose a danger to the Bytom network within a few working days. In addition to its security system, the Bytom network has various security gateways. These include local wallet security, web wallet security, and Private Key Management Security to check for any bugs and prevent any cyber hacks to the system.
2. Creating a system for digitization of physical asset
The Bytom platform was not just created to act as an exchange of asset between peer to peer but to tokenize physical asset and be used in its platform. Bytom focuses on bringing together the digital and atomic world and bringing off-chain assets on-chain. By atomic world, we mean assets like warrants, securities, dividends, bonds, and any assets that can be traded. By so doing, the Bytom platform acts as an open source to anyone who wishes to register assets and trade them in exchange of tokens – this is what is known as ‘digitization of physical assets’.
3. Anonymity during transactions
Staying confidential and private is what every user enjoys in the blockchain network. Bytom has also taken a bold step by granting it’s users the right for privacy in its network. Privacy, (which is one of the key features of most blockchain platforms), helps users to remain anonymous during transactions. Anonymity allows for the authentication of transactions without giving up any personal information to the public. This process of anonymity makes it possible for cross-border transfers between any jurisdiction and also avoidance of sanctions like tax and other small levies.
4. Lower transaction fee
One contributing factor for the growth of the blockchain industry within the past ten years is its low transaction fees. The Bytom network has committed itself to its investors by charging only a small fee for carrying out transactions in its platform. This low fee is the main attribute to its growth and value in the market. Most people still believe that Bytom fees might increase within the nearest future if it continually gains more value. But as of recent, investors can still enjoy its low fees for carrying out transactions.
5. Flexible fee payment process
Investors will not only enjoy low payment of fees using the Bytom network but enjoy flexibility during the payment process. After specifying the receivers account details and amount, users can pay for transaction fees in three different ways. The first is the standard transaction fees which are generated by the Bytom system automatically. The second is fast transaction fees which are double the transaction fee. The third is the customized transaction fee which allows users to alter the transaction fees to create a flexible mode of payment. With any of these payment processes, users can enjoy as low as 0.4BTM fees for payments and transactions when using their network.
6. Users can independently manage assets
Physical assets are usually managed by third parties like banks and insurers. These third parties have partial control of an investor’s assets. They would normally trade assets on behalf of the investor and earn a commission for their services. But with the use of the Bytom cryptocurrency network, users can enjoy total control and trade directly. Also, when third parties are eliminated, investors enjoy reduced transaction fees and minimal interference from government or other financial regulatory bodies.
7. A smart contract with four contract templates
Smart contracts are self-programmed contracts that help facilitate the exchange of assets and properties between individuals in case of any bridge of agreement. Smart contracts not only act as a third party but have numerous benefits that make it more highly recommended than lawyers. Some of its benefits include transparency to settle disputes and faster implementation procedures. Bytom smart contracts operate in four different template-types:
- Third-party contract account – This contract-type acts to hold assets in order to eliminate cheating and create a trust in the network.
- Coin-to-coin trading contract – This smart contract-type allows users to trade more than one asset without the use of a third party. Investors can only lock some part of the asset using this trading contract.
- Call option contract – This smart contract allows users to sell part of its assets at a particular price to buyers.
- Mortgage Contract – This contract-type tends to act as a balance between two individuals entering a contract.