I am very sure you won’t be happy to know that the things you will like to keep secret and which you assume are hidden are nothing but open secret.
Most especially when it deals with your financial transactions, you would feel unsecured and awkward to know that every of your dealings are been monitored. Fiscal transaction confidentiality is one of the most sought after things.
The truth is that we are always being monitored by banks or institutions before and after our transactions. They are acquainted with the ins and outs of our financial records.
You might think cryptocurrencies like Bitcoin provide a solution to this. But it is not so, this is because transactions on the Bitcoin blockchain exist on a public ledger which is open for all and sundry to peruse.
Most cryptocurrencies, based on blockchain technology, have an open and public ledger. Even though this is needed for these systems to work, it comes with the downside of privacy being sacrificed on the altar.
This is because analytic companies, government agencies and other interested parties have means of analyzing public blockchains and peer-to –peer networks of cryptocurrencies like Bitcoin. By so doing, they can cluster addresses and tie them to internet protocol (IP) addresses or other identifying information.
Quite a number of cryptocurrency projects have been launched over the years with the intent of improving on Bitcoin’s privacy features with recorded success. A number of these privacycoins are among the most widely held cryptocurrencies in the market today.
The world of cryptocurrencies is diverse and it is becoming more varied daily. Of the wide-ranging choices available in the cryptospace, Monero (XMR) stands out as a unique crypto coin. In fact you can say Monero (XMR) is like a more confidential Bitcoin.
Monero’s (XMR) Background.
Monero (XMR) is a privacy focused cryptocurrency built with the innovative CryptoNote Technology. Monero was launched as Bitmonero at the initial with no premine. Monero (XMR) came into existence in April 2014 as a result of a fork from the Bytecoin cryptocurrency.
The fork occurred because Bytecoin, an open source cryptocurrency project had not been transparent enough in its operations. Proofs came to light on crypto-forums that more that 80% 0f the coins were already pre-mined. This discrepancy and distrust led to its fork into Monero.
Monero was one of the altcoins that was not based on Bitcoin’s codebase. It was made from scratch and so it is not just another clone of Bitcoin’s core code. Monero has an infinite supply; it has an emission schedule that will marginally inflate the money supply forever. Monero rolls out scheduled hard forks two times in a year. In fact, its latest version has an ASIC-resistant,PoW algorithm meaning that the cryptocurrency is mined by GPUs and CPUs only.
Monero was created by thankful_for_today , a pseudonymous developer that was subsequently fired weeks after the project was launched when the it was forked. Monero since then has been led by a principal team of about 6 developers. The most visible of this group is Riccardo “Fluffypony” Spagni and David Latapie while most members of the core team are pseudonymous.
Aside the core team, there is the Monero Research Lab consisting of academics, scientist and researchers in math and cryptography.
Monero (XMR) is accepted as payment on numerous cryptomarket. This makes it one of the few altcoins that has discovered a non-niche use case that goes beyond trading. It is in fact one of the biggest privacy-centric coin on the market.
Benefits of Monero (XMR) Cryptocurrency
- Private: it is not possible for anyone to ascertain how much balance you have by looking at your blockchain.
- Secure: unalterable cryptographic math safeguards Monero transactions and wallets. When it comes to buying cryptocurrencies, you have plenty of options.
- Untraceable: Monero coins cannot be traced back to the blockchain by reason of encryption.
- Decentralized: All nodes or wallets are similarly eligible to verify Monero coins.
- Fungible: All Monero coin has the same market value regardless of time or place.
When it comes to purchasing cryptocurrencies you have numerous options.
On the other hand, when we are talking about untraceable and anonymous cryptocurrencies, then you have very limited options. The question then is, how does Monero (XMR) achieve end-to-end anonymity?
Monero’s (XMR) Privacy
Monero has privacy entrenched in its algorithm. Whereas Bitcoin and other cryptocurrencies propose privacy features as an option, privacy on monero is both default and required. Although users of Monero(XMR) can decide to give up some of their privacy by sharing a “view key”
Privacy is achieved in two ways:
- Untraceability through Ring Confidential Transactions (RingCT)
- Unlinkability through Stealth Addresses
Untraceability through Ring Confidential Transaction (RingCT) RingCT can best be understood as a combination of two other cryptographic tricks i.e. “Ring Signatures” and “Confidential Transactions.”
Unlinkability through Stealth Addresses : these are special types of addresses that can best be understood as cryptographic puzzle.
Monero as a project takes privacy very seriously. Their commitment to hard forking in new and improved features whenever it is available has given rise to top-notch privacy overall.
For Monero, increasing privacy comes at the cost of scalability. One big downside of Monero’s RingCT format is that it causes the system to be a magnitude less scalable than Bitcoin and virtually every other coin.
In the end, Monero is indisputably one of the best privacycentric coins available –if not the best. Even though Monero’s compulsory privacy and blinded amounts debatably gives it a leg up yet these features are in direct competition with scalability.
How these situation will eventually play out in time depends solely on future technologies, as such it is difficult to predict. It is not a foregone conclusion that Monero’s trade-off will provide a more private system forever.