One of the core precepts of the blockchain technology is to provide users with unwavering privacy. Bitcoin as the first ever decentralized cryptocurrency counted on this philosophy to market itself to the broader audience that was then in need of a virtual currency that is free from government meddling.
Unfortunately, along the way, Bitcoin turned out to be rife with several disadvantages including non-scalability and mutable blockchain. All the transactions and addresses are written on the blockchain thus making it easier for anyone to plug the dots and reveal users’ private details based on their existing records. Some government and non-government agencies are already using blockchain analytics to see data on Bitcoin platform.
Such flaws have led to developers looking into alternative blockchain technologies with improved security and speed. One of these projects is Monero, usually represented by XMR ticker.
What is Monero?
Monero is a privacy-oriented cryptocurrency project whoever main aim is to provide better privacy than other blockchain ecosystems. This technology shield’s users’ information through stealth addresses and Ring signatures.
Stealth address refers to the creation of a single address for a solitary transaction. No two addresses can be pinned to a single transaction. The coins received go into a fully different address making the entire process unclear to an external onlooker.
Ring signature, on the other hand, refers to mixing of account keys with public keys thus creating a “ring” of multiple signatories. This means a monitoring agent cannot link a signature to a particular account. jasminer x4 Unlike cryptography (mathematical method of securing crypto projects), ring signature is not a new kid in the area. Its principles were explored and recorded in a 2001 paper by the Weizmann Institute and MIT.
Cryptography has certainly won the bears of many developers and blockchain aficionados, nevertheless, you, it’s still a nascent tool with a handful uses. Since Monero uses the already tested Ring signature technology, it has set itself apart as a legitimate project worth implementing.
Things to know before you start trading Monero
Monero’s market is just like that of other cryptocurrencies. If you wish to purchase it then Kraken, Poloniex, and Bitfinex are a few of the transactions to visit. Poloniex was the first to take it accompanied by Bitfinex not only that Kraken.
This virtual currency mostly appears pegged to the dollar or against fellow cryptos. Some of the available pairings include XMR/USD, XMR/BTC, XMR/EUR, XMR/XBT and much more. This currency’s trading volume and liquidity record very good gambling.
One of the good stuff about XMR is that anyone can take part in mining it either as an individual or by joining a mining pool. Any computer with significantly good processing power can my own Monero blocks with a few hiccups. Don’t bother going for the ASICS (application-specific integrated circuits) which are currently mandatory for Bitcoin mining.
Despite being a formidable cryptocurrency network, it’s not so special when it comes to volatility. The majority of altcoins are extremely volatile. This should not worry any passionate investor as this factor is what makes them profitable in the first place-you buy when prices are in the dip and sell when they are on an upward trend.
In Economy is shown 2015, XMR was going for $0. 25 then did some jogging to $60 in May 2017 and it’s really presently bowling above the $300 mark. Monero coin recorded its ATH (all-time high) of $475 on Economy is shown seventh before it started slumping alongside other cryptocurrencies to $300. At the time of this writing, the majority of decentralized stock markets are in price a static correction phase with Bitcoin teeter-tottering between $10-11k from its wonderful ATH of $19, 000.
Fungibility and adopting
Thanks to its capacity to offer reliable privacy, XMR has been used by many people making its coins to be easily tried for other stock markets. Essentially, Monero can be easily traded in for something else.
All Bitcoins in Bitcoin Blockchain are recorded down, and therefore, when an incident like theft occurs, every coin involved will be shunned from operating making them nonexchangeable. With monero, you cannot distinguish one coin from the other. Therefore, no seller can decline any of them because it’s been associated with a bad incident.
Monero blockchain is currently one of the most trending cryptocurrencies with a significant number of followers. Like most other blockchain projects, its future looks great albeit the growing government crackdown. As an investor, you need to do your required research and research before trading in a Cryptocurrency. Where possible, seek help from financial experts in order to press on the right path.
Rodgers is a budding Forex and cryptocurrency writer with a writing experience comprising over four years. His mission is to writer practical and information-packed content that adds value to the lives of his readers.