Exploring the realm of blockchain technology reveals its potential to transform multiple industries. A standout feature is the capability to seamlessly connect digital and physical assets, fostering a more integrated and functional financial system. This intricate bridge ensures that tangible assets, once considered distinct from the digital realm, can now participate in tokenized economies, paving the way for increased liquidity and innovative trading methods.

Amidst the numerous platforms venturing into this domain, Bytom (BTM) stands out as a notable contributor, seeking to actualize this vision.

What Is Bytom (BTM)?

Bytom (BTM) embarked on its journey in the crypto landscape in 2017, conceptualized with the goal of facilitating the transfer and management of different asset classes on a singular platform. Founded by Chang Jia and Duan Xinxing, the latter formerly the Vice President of OKCoin, Bytom’s primary objective was to bridge the digital world with the physical world by representing physical assets on the blockchain.

In July 2017, Bytom successfully completed its Initial Coin Offering (ICO), raising a significant amount ($2.28 million USD) and marking its official entry into the market. The platform introduced a unique three-layer architecture, differentiating itself from other blockchain projects.

In April 2018, Bytom launched its mainnet, solidifying its position in the blockchain space. Bytom’s consistent growth can be attributed to its innovative approach, including the use of AI-friendly Tensority consensus algorithms.

Continuing the trajectory of Bytom’s evolution, a significant development came in 2021, when Bytom unveiled the plan for Bytom 2.0. This new version was designed to unify the platform’s operations onto a singular chain. The existing Vapor sidechain was planned to be phased out post-migration of assets and applications. A key promise of Bytom 2.0 was the reduced confirmation times and lower trading fees while retaining the essence of the platform’s core business functionalities.

How Does Bytom Work? Asset Management and Architecture

Bytom’s Asset Management platform is a groundbreaking endeavor in the blockchain space, facilitating the registration, issuance, and transfer of a variety of digital assets.

The platform classifies assets into three categories. Income assets encompass non-performing assets, local government investments, and crowdfunding campaigns. Equity assets, which require investor verification for transfers, include private company equities and non-public investment shares. Securitized assets, characterized by predictable cash flows, encompass debts and automobile loans. The ability to trade these diverse assets on-chain using Bytom’s protocol introduces significant advantages.

Traditional asset management often involves intermediaries, leading to increased costs and transfer times. Bytom’s decentralized approach eliminates these middlemen, thereby slashing costs and improving efficiency. Asset ownership and exchanges on the blockchain are not just more efficient but also more secure. With records maintained on an immutable, globally distributed ledger, there is no single point of failure, ensuring robustness and transparency in asset management.

Bytom is acutely aware of the regulatory landscape surrounding digital assets. To navigate compliance challenges, Bytom collaborates with legal experts and financial consultants globally. Their aim is to ensure that the platform aligns with local and international regulatory standards. Furthermore, Bytom’s protocol integrates KYC/AML procedures for investor verification, particularly for equity assets, ensuring a balance between decentralization and regulatory compliance.

Bytom’s architecture is delineated into three distinct layers: Application, Contract, and Ledger.

The Application Layer, the user interface, encompasses mobile and web applications essential for asset management. Initiating actions here prompts contract activations in the Contract Layer. Within this layer are two pivotal contracts: the Genesis Contract, responsible for issuing and auditing other network contracts, ensuring standardized asset adherence, and the General Contract, managing asset trading and dividend distributions. New assets are first vetted by the Genesis Contract before deployment. The foundation, the Ledger Layer, links Bytom to a public, permissionless blockchain that was running a Proof-of-Work (PoW) consensus.

Recent changes heralded Bytom 2.0, prompted by operational costs in the dual-chain model. The evolved Bytom 2.0 combines the “one main side and one side chain” approach into a consolidated platform. Drawing from the Vapor side chain architecture and MOV’s open financial platform insights, Bytom transitioned from a Proof-of-Work to a Proof-of-Stake model, streamlining its platform, improving asset flow efficiency, and enhancing compatibility with external ecosystems to truly embody its vision of on-chain asset integration.

Building upon its Vapor foundation, Bytom 2.0 revolutionizes its consensus with a robust PoS system, enhancing the existing DPoS+BFT algorithm. This shift amplifies staking economics and introduces a meticulous reward-penalty framework. Seamlessly transitioning from the previous architecture, it empowers BTM stakeholders to actively engage, fostering a cohesive community crucial for the stability and growth of the Bytom ecosystem.

Source: bytom.io

In essence, Bytom 2.0 not only represents a technical evolution but also symbolizes a renewed commitment to community-centric growth. By emphasizing stakeholder engagement and optimizing consensus mechanisms, Bytom is poised to redefine the boundaries of blockchain utility and community collaboration.

Bytom Use Cases

Bytom offers a versatile platform tailored to facilitate multiple real-world applications. Some of its notable use cases include:

• Asset Tokenization: Bytom’s core functionality lies in enabling users to tokenize real-world assets, like real estate or commodities, making them tradable on the blockchain.
• Cross-Chain Interoperability: With Bytom, assets issued on other blockchains can be transferred to and from the Bytom chain, ensuring a seamless flow of assets across the ecosystem. Bytom’s cross-chain transfers use a strong security model, combining multi-signature processes and a distinct consensus algorithm. It employs cryptographic proofs to authenticate assets, ensuring their safety across different blockchains
• Securities Trading: Equity assets like shares of private companies can be issued and traded using Bytom, simplifying and democratizing the investment process.
• Debt Instruments: Securitized assets, like debts or auto loans, can be represented and traded on Bytom, ensuring transparency and efficiency.
• Dividend Distribution: Bytom’s General Contract helps in setting up and verifying dividend distributions, making it easier for businesses to manage payouts.
• Crowdfunding: By using Bytom, innovative projects can raise capital by issuing tokens representing ownership or participation rights.

Speaking of asset tokenization, its potential applications are vast and transformative. To better grasp its capabilities and use-cases, here are some examples:

• Real Estate: A real estate developer could tokenize a new building project on Bytom. Each token might represent a square foot or meter of the property, allowing investors to buy, sell, or trade portions of the real estate on the blockchain, providing liquidity and accessibility to smaller investors.
• Art and Collectibles: An art gallery could tokenize a valuable painting, dividing its ownership into multiple tokens. Art enthusiasts could then purchase a fraction of the artwork, enjoying shared ownership and the potential appreciation of its value.
• Supply Chain Goods: A coffee producer could tokenize batches of coffee beans, tracing their journey from farm to cup. Consumers could then verify the origin and authenticity of their purchase, ensuring they receive genuine products.
• Royalty Streams: Musicians or authors could tokenize their royalty streams, allowing fans to invest directly in their favorite artist’s future earnings. As royalties are collected, they’re distributed proportionally to token holders.

By harnessing these use cases, Bytom is truly bridging the gap between the physical and digital asset worlds.

What Is the BTM Coin?

BTM is Bytom’s digital token for asset management and operations. Its maximum supply is capped at 2.1 billion units, of which 1.801 (85.8%) are already in circulation (September 2023).

BTM plays a central role in Bytom’s ecosystem. This token is experiencing a renaissance with the advent of Bytom 2.0, a thoroughly reformed economic model designed to enhance value capture. Here are the key changes and their implications:

• Quantity Reduction: The shift from POW to POS in Bytom 2.0 removes the annual mining reward of roughly 80 million BTM. Consequently, the total BTM count will decrease from 2.1 billion to approximately 1.566 billion.
• Circulation Diminution: Assuming the majority of the 1.566 billion BTM transitions to Bytom 2.0’s PoS blockchain, a significant portion will be staked for security, reducing its circulating supply.
• Issuance Scale Tapering: Though Bytom 2.0 will still issue BTMs as PoS rewards, the annual increase will be capped at 30 million, significantly less than the current 90 million.

Lastly, post-upgrade, while users might hold both the original and new BTM tokens, the team will solely retain the new BTM, ensuring commitment and burning all Bytom Classic tokens they possess.

Bytom 2.0’s tokenomics brings a comprehensive reform, placing emphasis on staking incentives and controlled supply growth. The issuance mechanics tie directly to staking proportions, encouraging long-term BTM locking and reducing circulation. While the yearly issuance is limited to 30 million BTMs, this fosters a deflationary model. Additionally, the team’s unwavering commitment is showcased by their decision to retain only the new BTM post-upgrade, ensuring that their interests are symbiotically aligned with the broader ecosystem’s health and progress.

Bytom Ecosystem

The Bytom Ecosystem is a feature-rich package created to meet the demands of contemporary blockchain technology. Below are some practical applications:

• New Platform: Bytom introduces a fresh smart contract platform, fostering an innovative space for developers to flourish and craft groundbreaking solutions.

• Decentralized Finance (DeFi): Revolutionizing traditional finance, DeFi on Bytom is a beacon of accessibility and cost-efficiency. MOV, as Bytom’s standard DeFi application protocol, offers agile solutions in tune with ever-changing financial landscapes.

  Bytom’s development framework is built on its own unique Virtual Machine, called BVM (Bytom Virtual Machine). The primary programming language for smart contracts on Bytom is ‘Equity’, tailored for asset management and designed for simplicity and security. This ensures both adaptability and robustness for DeFi applications like MOV on the Bytom platform.

• NFT and Metaverse: Bytom dives into the digital frontier with its support for NFTs, unique tokens epitomizing digital ownership. Furthermore, it ventures into the Metaverse, a sprawling virtual realm enriched with these NFTs. On Bytom, users are empowered to create and trade high-value NFTs within this Metaverse.

• Scalable Cross-chain System: Bytom stands out with its prowess to seamlessly transfer crypto assets between its blockchain and other networks, ensuring quick and streamlined operations.

• Robust Oracle System: Elevating its capabilities, Bytom’s consensus nodes can double as oracle service nodes, bridging the on-chain and off-chain worlds by broadcasting crucial off-chain data.

Source: bytom.io

Bytom has also forged strategic partnerships to bolster its ecosystem and expand its reach. Collaborating with Poly Network, Bytom enhances its interoperability capabilities. With Flux, Bytom delves deeper into decentralized computing and storage solutions. Additionally, its alliance with Polygon underscores Bytom’s commitment to scalable infrastructure, emphasizing shared goals in blockchain scalability and fostering mutual growth in the decentralized space.

Is Bytom a Good Investment?

Asset tokenization is rapidly emerging as one of the most significant use cases of blockchain technology. By converting tangible and intangible assets into digital tokens, blockchain offers a revolutionary way to buy, sell, and transfer ownership in a secure and transparent manner. This shift to tokenization could transform numerous industries, making it a ‘hot’ topic in the foreseeable future. In this evolving landscape, Bytom stands out with its unique focus on asset management and tokenization. The launch of Bytom 2.0 bears testament to the team’s dedication to growth and innovation. The new developments brought forth by Bytom 2.0 signify not just an upgrade, but an evolutionary leap in their vision, emphasizing the team’s commitment to continuous development.

However, it is noteworthy that Bytom has been relatively silent on their official communication channels for the past three months, with no updates on their Medium or Twitter. This hiatus might be a point of consideration for potential investors. While the past achievements of Bytom are commendable, it is crucial to be aware of the project’s current status. Like any investment, Bytom carries inherent risks. Thorough research and, if possible, consultation with financial advisors is always recommended before making investment decisions.

How to Own BTM?

To own BTM, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy BTM.

News on Bytom

Although there is no relevant recent news, it’s crucial to highlight Bytom’s position concerning U.S. regulatory frameworks. In 2017, amidst heightened scrutiny on cryptocurrencies by regulatory bodies, the U.S. San Francisco-based law firm Velton Zegelman PC conducted an analysis of Bytom using the “Howey Test”. Their evaluation concluded that Bytom wasn’t a security, exempting it from the SEC’s oversight. This decision was pivotal, marking Bytom as China’s first U.S. compliant non-securities blockchain project. The “Howey Test”, utilized by the SEC to determine securities status, comprises four factors: investment of money, common enterprise, expectation of profits, and profits derived solely from others’ efforts. Velton-Zegelman PC’s analysis affirmed that Bytom met these criteria. Duan Xinxing, Bytom’s co-founder, emphasized the importance of legality and technological innovation for blockchain entities aiming for mainstream acceptance.

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