Post
Topic
Board Altcoin Discussion
Re: 10 months on... About the Bytecoin (BCN) ninjamine
by
fluffypony
on 24/01/2015, 07:23:20 UTC
The thing is, Satoshi didn't cripple Bitcoin with unoptimized code, nor did he have a 82 %(around 80) premine/ninjamine/w.e. Read that again, 80 percent of all Bytecoins are owned by a handful of people. 80%.

Enough said.

In the same way no one cares about Satoshi holding over 1 million Bitcoins, lots(?) of people don't seem to care about this fact, thats fine for me because they cant force me to use Bytecoin so as shocking as this is, in the end of the day its a "non-issue" because Bytecoin was the 1st (I think).

The one thing that is often missed with Bytecoin is that, by implication, a very small group of people own at least 82% of the utxoset (in fact, since Bytecoin emission isn't approaching 100% just yet they own significantly more than 82% of the utxoset). There simply hasn't been enough ongoing volume for that situation to have changed (eg. via them selling their stash). Even if there was enough volume, the fact that they have that much on tap means that they can cycle coins to continue to own the utxoset.

Why is this important? Well, if you've ever had a chance to read the Monero Research Lab's research bulletin MRL-0002 you'll know about the chain reaction attack we discovered that affects all CryptoNote-derived coins. Basically, it doesn't matter what mixin a Bytecoin user sets for their transaction, this small group of people (or maybe even an individual) can completely deanonymise the transaction by revealing which signatures in the ring signature set are controlled by the preminers, thus revealing which signature(s) are "real". This basically means that ring signatures in Bytecoin are pointless due to the vast majority of the utxoset being owned by unknown individuals.