The BCN price enlargened by 300% following a Binance listing
Ultimately, some good Bytecoin news (BCN) spil the development team has released a statement explaining the reasons behind the anomalous price rise and severe issues experienced on the network.
According to a blog postbode released on Wednesday on the Bytecoin webstek, issues stemmed from a surge of fresh miners joining the network who were using outdated software.
The old software contained a bug that affected how the network determined block sizes and how it reached overeenstemming, causing network lags and long transaction confirmation times.
The postbode says that issues became severe spil the number of miners using outdated software rose and generated blocks that were not being accepted by the network.
A hard fork wasgoed prevented because most of the blocks being generated by miners using the up-to-date software were being accepted by the older overeenstemming models.
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On Tuesday, Binance opened up three fresh BCN trading pairs with Bitcoin (BTC), Ethereum (ETH) and its own Binance Coin (BNB).
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Soon after the announcement – at around 04:00 GMT – the BCN price began to rise significantly te value, rising by 157% from just below $0.007 to $0.018 vanaf coin by midday, according to CoinMarketCap.
The overheen $2bn surge ter its market cap then seemed to step by step subside before shooting back up by a further 172% by midnight, at which time CoinMarketCap stopped tracking Bytecoin’s price.
The unexpected price rise wasgoed attributed spil Poloniex and HitBTC, the two other exchanges that list BCN, froze all trades spil network issues began to materialize, leaving Binance spil the only server where the coin could be bought or sold.
Having released a fresh software update that fixes the network’s bug, the Bytecoin development team expect network issues to be resolved te the next day or so spil users update their software.
A Proof-of-Work (PoS) coin, Bytecoin has bot around for fairly a while, very first launching back on the 4th of July (Independence Day te America) 2012.
BCN wasgoed also the very first privacy coin: using CryptoNote to prevent users being tracked through the blockchain. Te 2014, Monero (XMR) hard-forked from the Bytecoin network.
Albeit it could be considered a venerable old coin by crypto standards, Bytecoin has failed to build up much traction or a strong colchoneta of loyal followers, especially after Monero’s lead developer, Ricardo Spagni claimed on Reddit back te that overheen 80% of BCN had already bot pre-mined by the coin’s development team.
The reality is that 82% of the coins were already mined before its “public” release. Even if the premined coins weren’t done so maliciously, it still means 82% of the coins ter the forearms of persons unknown and invisible. It basically centralises a decentralised currency.
If nothing else, this week’s calamidad has at least raised Bytecoin’s profile among the mainstream crypto community. Spil the telling goes: every cloud has a silver lining.
Paddy Baker is a London-based reporter whose interests te mundial finance and cryptocurrency may seem at odds with his background spil a paramour of history. Paddy lives a brief bike-ride away from ten million other people, and has yet to be seen te public without his laptop.