Byteball is a decentralized system that allows tamper proof storage of arbitrary data, including data that represents transferable value such as currencies, property titles, debt, shares, etc. Storage units are linked to each other such that each storage unit includes one or more hashes of earlier storage units, which serves both to confirm earlier units and establish their partial order. The set of links among units forms a DAG (directed acyclic graph). There is an internal currency called ‘bytes’ that is used to pay for adding data into the decentralized database. Other currencies (assets) can also be freely issued by anyone to represent property rights, debt, shares, etc. Users can send both bytes and other currencies to each other to pay for goods/services or to exchange one currency for another; the transactions that move the value are added to the database as storage units.
In Byteball, you must pay a commission using a currency called “Bytes” to add data into the database. The name of Byteball’s currency directly reflects its value. Extremely intuitive, the number of Bytes you pay to add data to the database corresponds directly to the data size of your transaction. For instance, your commission fee to add 1 Kb of data would be 1,000 Bytes. Commission fees create a consistent system of value transfer that aligns the interests of all Byteball’s stakeholders. It also prevents users from spamming useless messages to the database. In addition to payment for storage fees, you can pay Bytes directly to other users for goods or services. Byteball has a second currency that can be used on its platform – Blackbytes. Unlike Byte transactions that are completely visible on the DAG, Blackbytes are significantly less traceable. Blackbyte data is not recorded in the public database; Instead, the transaction data is sent directly peer to peer.
Made up of a small team of less then five members, Byteball is lead by its founder and lead developer, Anton Churyumov. Churyumov has extensive executive experience in the tech sector as he is co-founder and CEO of Teddy ID as well as co-founder and CIO of Platron. If that wasn’t impressive enough, Churyumov owns SMS Traffic, a Russian technology company that offers solutions and marketing for banks, insurance, and retail firms. Attending Moscow Engineering Physics Institue from 1991 to 1997, Churyumov received his degree in Theoretical Physics.
Another feature of Byteball is identity verification. Every Byteball user can link their Byteball address to their real-world identity. Byteball has partnered with Jumio, the leading provider of identity verification services, in order to verify its users’ identities. Once verified, a user’s personal data is securely stored directly in their wallet. At the same time, a hash of the personal data is stored on the public DAG and signed by a trusted attestor. This feature allows Byteball users to decide what to disclose and to whom. When you want to disclose your identity to a service provider, you just pull it out of your wallet in a few clicks. This is useful when participating in ICOs, for example.
There aren’t many other cryptocurrency platforms built using DAG technology out there, so Byteball doesn’t really have many competitors. However, the biggest DAG-based platform is IOTA, and they are currently much more popular and successful than Byteball. That said, Byteball and IOTA are different platforms with different focuses, so they shouldn’t really be considered direct competitors. Right now, the main challenge for Byteball is to gain more popularity and adoption. It’s still a pretty obscure cryptocurrency platform. First and foremost, Byteball will have to up their marketing game so more people know who they are and what they do. The technology and features are solid, so once they gain more exposure, Byteball could potentially become incredibly popular.
Check out CoinBureau for the complete review of Byteball.