Bytom is a blockchain protocol designed to digitize and tokenize real-world assets. Bytom aims to bridge the gap between blockchain technology and the physical world by enabling the registration, exchange, and circulation of both digital and physical assets on-chain.
The native token of the Bytom blockchain is BTM. Bytom was founded by the 8BTC news site in 2016, and had its genesis block created in April 2018 after a small ICO raise of $30 million. Since then, Bytom has focused on refining its technology and expanding adoption in Asia.
How Bytom Works
Bytom works by allowing users to register, trade, and transfer assets like stocks, bonds, securities, precious metals etc. on the Bytom blockchain. Users can tokenize these real-world assets into the equivalent digital tokens on Bytom.
To achieve this digitization, Bytom uses a 3 layer framework:
- The Application Layer handles registration and transfer of assets through smart contracts.
- The Contract Layer stores information about asset issuance and ownership status.
- The Ledger Layer records all transaction data as blocks on the Bytom blockchain.
Bytom uses a proof-of-work (PoW) consensus model currently, but has plans to shift to proof-of-stake (PoS) in the future. The network achieves scalability through sidechains — separate PoW chains pegged to the main Bytom chain.
Key Features of Bytom
Some of the standout features of the Bytom blockchain include:
- Asset Digitization — Bytom allows registration and exchange of both digital and physical assets on-chain through tokenization.
- Scalability — Bytom uses sidechains and cross-chain communication to achieve high scalability.
- Custom Assets — Users can create customized asset definitions and set parameters like supply, issuance, etc.
- Atomic Swaps — Bytom supports cross-chain atomic swaps between different assets and tokens.
- Flexible Dividends — Bytom supports dividends, sharing of fees, and other distribution models for asset issuance and transfer.
- Programmability — Bytom is compatible with smart contracts written in multiple languages like C++, Rust, Python etc.
- Security — Bytom uses cryptographic primitives like Schnorr signatures and zero-knowledge proofs for security.
Use Cases of Bytom
As an asset digitization platform, Bytom is designed to be used for:
- Tokenizing financial assets — Stocks, bonds, derivatives, commodities, etc. can be registered and traded on Bytom.
- Physical asset ownership — Bytom can tokenize ownership for cars, real estate, collectibles, manufacturing equipment etc.
- Supply chain tracking — Bytom can track goods and materials in complex supply chains via digitized tracking.
- Fractional asset ownership — Bytom enables fractionalized ownership of expensive assets like real estate, fine art, etc. through tokenized fractions.
- Decentralized exchanges — Bytom assets can be traded securely on decentralized exchanges without intermediaries.
- Tokenized access — Bytom tokens can control access to software, services, utilities in a transparent immutable way.
The BTM Utility Token
BTM is the native token that powers Bytom. It has the following utility functions on the network:
- Used to pay transaction fees on the Bytom blockchain. Higher fees incentivize faster confirmation.
- Used as deposits for nodes and miners to participate in consensus and block production.
- Used for on-chain governance — BTM holders can vote on protocol changes and development funds allocation.
- Serves as an incentive for developers building on Bytom through rewards and grants.
The supply of BTM is capped at 2.1 billion tokens. New BTM enters circulation mainly through block rewards for miners. BTM is traded on major exchanges and its price vs USD and BTC fluctuates based on market dynamics.
Future Roadmap and Developments
Bytom has an extensive roadmap planned for enhancements and greater adoption of its protocol. Some upcoming developments include:
- Transitioning fully to a PoS consensus model for better energy efficiency.
- Enabling interoperability with Ethereum, Polkadot, EOS and other chains.
- Support for decentralized computing through blockchain oracles and sidechains.
- Self-evolving blockchain framework for automatic updates and protocol improvements.
- More enterprise partnerships and integration of Bytom into DeFi, NFT, and Metaverse ecosystems.
Bytom presents a unique value proposition by enabling the digitization and exchange of real-world assets over blockchain. This unlocks several new models for fractionalized ownership, decentralized finance, transparent supply chains and more.
With strong technology foundations and adoption in its home market of China, Bytom has emerged as one of the leading blockchain projects working on asset tokenization. Expanding integrations with DeFi and other blockchain ecosystems will likely cement Bytom’s position further in the coming years.