5 Reasons Bytom Might Be Worth Watching in 2020
Distributed Ledger Technology (DLT) or more popularly known as Blockchain technology has been labeled as one of the most disruptive technology since the internet. The internet emancipated information while DLTs emancipated money through its first use-cases cryptocurrencies. The technology was so revolutionary that it has the capacity to shape the future of the entire archaic and outdated monetary system that is prevalent today. It was just a matter of time before visionaries realized that blockchain technology can also be used in other use cases beyond what it was initially known for.
The introduction of blockchains with smart contracts opens the floodgates of innovation. Many developers saw this opportunity to leverage blockchain technology in other use cases in various industries. These include identity, supply chain management, tokenization of real-world assets, games, collectibles, pegged assets and many more. The enormousness of its application makes it seems that mass adoption is not that far away but up until now, this has not happened for the simple reason that the technology is not ready for prime time. The inability of blockchains to scale was and still is a major roadblock for mainstream usage.
Achieving scalability in a decentralized environment is extremely difficult to achieve. Blockchain developers call this the scalability trilemma or blockchain trilemma, a condition by which one cannot fully achieve scalability, security, and decentralization without giving concessions in one or two of the other properties. Up to this day, the leading smart contract platforms are still looking for solutions for this problem. Here is where Bytom comes in where it proposes a multi-tier approach to solve the persisting challenge.
What is Bytom?
Bytom is a relatively new blockchain that started in early 2017 with the primary aim of providing a platform that will enable its users to own, hold, manage and transact both virtual and real assets in one seamless platform. To ensure scalability, decentralization, and security they have taken a layered approach for their blockchain solution: the ledger layer, the sidechain extension layer, and the services adoption layer. This approach enables dapps developers with unprecedented flexibility and freedom in creating their decentralized applications.
This means that developers using Bytom will be able to configure many of the elements of the blockchain from consensus mechanisms, smart contracts, asset types and how they interact with the different layers. On June 19, 2019, the Bytom team released Bystack a general application stack platform that demonstrates the potential of the three-tier architecture. The ledger layer is the Bytom mainchain, the sidechain is called Vapor and the services adoption layer is called Blockcenter. Bystack implements a mainchain-sidechain collaborative working model where we see one mainchain working with different or multiple sidechains.
Mainchain-Sidechain Architecture (Layer 1 and Layer 2)
This sophisticated model allows all developers to tackle all the requirements of the blockchain trilemma. While technically it is complicated to implement the solution is quite simple, the first layer (Bytom mainchain) addresses the requirement of decentralization by using PoW consensus. The second layer (Vapor) concentrates on transactional efficiency hence it ensures the scalability aspect of the model. Both layers complement each other and together addresses decentralization and efficiency while ensuring the security of the whole ecosystem.
The Bytom blockchain plays a pivotal part in this architecture. This layer guarantees proper value anchoring, successful and irreversible value transfers, and deposits. Asset creations, transactions, destruction, and storage occur in the mainchain. Bytom Blockchain uses Tensority, a time-proven Proof-of-Work (PoW) consensus mechanism that allows the use of older AI ASIC-chips for mining through AI hardware acceleration services. This breaks down barriers to entry and enhances consensus participation.
The Vapor sidechain addresses the requirement of scalability, different applications have different requirements in terms of transaction bandwidth and data storage. According to the Bytom team, sidechains support pluggable consensus and database plugins, making it a very flexible solution to match various business use cases. Its modular design enables individuals or enterprises to use existing sidechain like vapor or create new sidechains to build their own decentralized applications that will meet the actual business needs.
The mainchain-sidechain model was made possible through the use of Federation protocol which plays three major roles as validator, collector and federal address management. It is a cross-chain communication protocol that allows the effective and efficient transfer of data between the two interacting chains or in some cases multiple chains. As a validator, it is the block producer of the side chain which can be anyone in the ecosystem. As a collector, it monitors transactions in the mainchain locked in federation contract address and relays transactions to the validation nodes for verification. Lastly, it acts as a Federal address.
Blockcenter (Layer 3)
Blockcenter acts as the core of the entire enterprise-level which expands the capabilities of the first two layers. It serves as an abstraction layer for the underlying blockchain technology and provides a more familiar development framework for developers who are not used to blockchain-based development. According to Bytom’s whitepaper, it also provides maintenance, monitoring, and upgrades. The blockcenter itself also takes on a layered architecture: Business layer, adoption layer, and business monitoring. These are all business modules at the system level.
The modular design of Bytom’s platform enables pluggable solutions that can easily be integrated within its ecosystem giving developers the freedom to choose the best possible solutions for their business requirements. Through its layered design, developers can easily reconfigure existing solutions by adding or removing certain elements in the platform to create their own. By doing so they can accelerate development, reduce cost and enable a more familiar development environment.
The diagram below shows a very high-level overview of the Bytom ecosystem.
It is apparent that Bytom is a highly technical sophisticated project with many complex parts working together in an attempt to provide a blockchain platform that not only addresses the most prevailing challenges of DLTs today but also to give developers the most comprehensive set of tools to build decentralized applications effectively and efficiently. This project seems to mimic the current technological structure of the internet wherein different technologies are able to work together through pluggable interfaces that allows them to interoperate.
We don’t need to be a developer to recognize that Bytom is a very huge endeavor with many technologies that have to be designed and coded from the ground up. Amazingly, the team has been delivering on their promise launching Bystack which they describe as the world’s first Blockchain as a Service platform with a main multi-sided architecture BUTXO model. This was followed up with its Launch of MOV, a layer 2 decentralized value exchange protocol based on Bystack. Heading on to this year Bytom is not resting on their laurels as they take a more aggressive stance in seeking partnerships, investing in projects and expanding overseas.
Here are 5 reasons why Bytom might be worth watching in 2020
Improving Market Conditions
The general market conditions seem to be improving after a long and painful market correction that started. While there are still those occasional pumps and dumps many pundits believe that the market has already bottomed out and is ready to head towards the long path to recovery. Central to these sentiments is the halving event of Bitcoin which the many believed to be a precursor to the previous parabolic bull-runs the crypto market experience in the past. This generally positive market sentiment will help projects like Bytom as a resurgence of interest on blockchain-related projects will likely to occur with new investors coming in.
Bytom is in a unique position to stand out among the thousands of platforms out there for improving Bitcoin’s UTXO model that leverages the time-tested and proven PoW consensus protocol and at the same time circumventing many of its limiting attributes through its mainchain-sidechain model. The team’s ingenious approach will certainly catch the discerning eyes of many sophisticated investors who are always in the lookout for innovative technologies that may disrupt the blockchain hegemony which may turn into a very lucrative investment opportunity.
Multiple Technological Innovation
The most valuable asset of Bytom is its technology hence its value pegs on what value proposition its technology can offer. By taking a layered approach it was able to create a unique blockchain platform that is able to break the blockchain trilemma and at the same time provide developers the infrastructure needed to create decentralized applications that solve real-world problems. Hence it was able to effectively bridge the physical world and the digital world to create a digitized network where they can interact with each other.
Bytom’s mainchain uses BUTXO which improves the Bitcoin UTXO model and supports multiple asset transactions. Each of BUTXO is secured by an independent contract which means if one of these BUTXO is compromised the other assets are not affected. Moreover due to the statelessness of BUTXO privacy is enhanced to some degree that is. The second layer Vapor uses a unique consensus algorithm which is a combination of DPoS and BBFT. In this consensus protocol, the community first votes for node utilizing DPoS and then selected nodes reach a consensus utilizing BBFT.
Looking into Bystack’s whitepaper we can see several innovative features such as the ability to support several complementary consensus protocols running concurrently via the mainchain-sidechain model. The Vapor Neuron Rely (VNR), a technology-based on UDP and Forward Error Correction (FEC) protocol that enables the network to reconstruct the entire block even if some data are missing. The Parallel Sliding Windows Validation Algorithm (PSWV) can synchronize hundreds of blocks simultaneously enabling Vapor to verify blocks in parallel in multiple threads. And lastly, a more powerful database interface that meets the requirements of enterprise-level databases.
The Bytom team also introduced several Digital asset types in an effort to map real assets into the virtual blockchain world and give a more basic classification of assets from the perspective of physical attributes. They believe that this will give users a better understanding of the digital assets especially those who come from finance, governance, gaming, and royalties. The Bytom team classified them in terms of the asset’s Severability and Fungibility. The 4 types of assets are Byte assets (BAP-01), Atomic assets (BAP-02), Quark assets (BAP-03), and Quantum assets (BAP-04).
Byte assets are divisible and fungible which can represent both virtual and real assets and can be likened to the Ethereum ERC-20 Protocol. Atomic assets are also divisible but non-fungible, they represent real assets such as Bytom’s native token or stocks issued and is said to be equivalent to a non-homologous cryptocurrency like Bitcoin. Quark assets are non-fungible and indivisible the are similar to ERC-721 protocol. Finally, the Quantum assets which are indivisible and fungible which are applicable to red envelopes, coupons, tickets, and QR codes.
Growing Community of Supporters
Having a cryptocurrency community that truly believes and supports a blockchain project is as important as the underlying technology itself. There have been projects in the past that enjoys a relatively high level of success without really bringing anything new to the table. They are where they are because the community brought them there. An excellent example of this is Dogecoin. It does not offer any technological innovation nor does it have any real commercial value aside from tipping in social media and as a speculative investment vehicle. However, due to its popularity, it thrived.
The Bytom team recognizes this and has recently stepped up its efforts to expand its marketing reach by launching a Global ambassador program that will help them spread awareness about their project. The primary goal of this initiative is to educate people about BYTOM so that they will be aware of its potential. Forming a highly motivated and knowledgeable group of international ambassadors is an important step to get its message across to ordinary and investors who might not be able to understand the highly technical project and how to translate it into value they can understand.
Network effects will increase the demand for Bytom as more users will be exploring and using the different decentralized applications built on top of its platform. More importantly, other blockchain developers might even look into the platform and launch their own dApps using the highly “configurable” and flexible infrastructure of Bytom. This highlights the importance of onboarding dApps developers into the ecosystem including the many community developers. This brings us to the next point why Bytom is worth watching in 2020.
Increasing the Dapps built on its platform
Aside from increasing its community the Bytom team is also keen on increasing the number of developers that will build dApps on its infrastructure. The vastness of Bytom’s technological innovation will surely attract many developers who find themselves constrained by available solutions today. It is almost a guarantee that developers will leverage Bytom’s layered design and configure their dApps exactly how they would it to be. To entice more developers to join Byton’s ecosystem they have recently released a bounty for developers.
The Bytom Foundation, the main organization that backs all Bytom related initiatives have recently announced the allocation of around 100 Million BTM tokens to establish a MOV fund. The main purpose of the fund is to seek out partnerships, investment opportunities and expand operations internationally. This fund will center on expanding MOV’s ecosystem, a layer 2 decentralized value exchange protocol that is based on Bystack. This means the Bytom has effectively created a complete ecosystem composed of Bytom mainchain, Vapor sidechain, and MOV cross-chain protocol.
According to Bytom’s CEO Lang Yu, the priority of his organization now is expanding the MOV ecosystem and the creation of a series of industry sidechains. The bounty program seems to echo this direction. They seek the support of the developer community and incentivize them by as much as 100,000 USD depending on the value their project brings. Bounty participants can contribute software and tools, academic research, educational materials, and others so long as it brings more value into the entire Bytom ecosystem.
Attracting Business Partnerships
It has always been the intention of the Bytom team to create a blockchain ecosystem that addresses real-world problems effectively and efficiently. By creating the Bytom mainchain, Vapor sidechain and MOV cross-chain they have finally achieved a working complete general-purpose blockchain ecosystem that is flexible and configurable enough to adapt to any business uses cases. Technologically, it has one of the most complete, flexible and sophisticated blockchains out there.
Combined with a more aggressive marketing strategy this year, Bytom will surely attract many organizations that are seeking to leverage the latest and greatest advancement in blockchain technology. Bytom’s recent release of MOV stable financial system 1.0 proposing a stable financial solution with BTC, ETH, USDT, and BTM as collateral is a timely initiative at the time when Decentralized Finance (DeFi) is gaining popularity. MOV DEX, like MOV stable financial system, is part of MOV’s asset circulating infrastructure that was created to provide a venue where users enjoy decentralized trading and have similar or equivalent security measures against outside market risk, liquidity risk, and internal operating risk.
2020 is shaping up to be an exciting time for Bytom. While there is still a lot of development to be done they have reached a point where they have enough done in terms of a functional ecosystem to start rolling out commercial grade products and services that effectively leverages blockchain technology without the perceived insurmountable challenges. Only time will tell how the wider blockchain and cryptocurrency community reacts to the impressive collection of blockchain-related solutions they offer.
From what we have seen so far we can absolutely say that we are thoroughly impressed with what we saw. These are the types of ecosystems that can sell itself to any developer who is looking for a distributed ledger technology that is decentralized, scalable and secure. Developers who do not check this platform will perhaps miss out on one of the most complete, flexible and configurable blockchain that has ever been released.
Author Info: Jesús Cedeño
Jesús is a doctor turned cryptocurrency and blockchain enthusiast who loves sharing his thoughts on cryptocoinsociety.com to help simply crypto in order to make it more accessible to the masses.