One of the core precepts of the blockchain technology is to offer users with unwavering privacy. Bitcoin as the first ever decentralized cryptocurrency relied with this premise to promote itself to the wider audience that was then in need of a digital currency that is free from government meddling.
Unfortunately, as you go along, Bitcoin became rife with several weaknesses including non-scalability and mutable blockchain. Most of the transactions and addresses are written on the blockchain thus rendering it easier for anyone for connecting the dots and unveil 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 considering alternative blockchain technologies with improved security and speed. One of these projects is Monero, usually represented by XMR ticker.
Monero is just a privacy-oriented cryptocurrency project whose main aim is to offer better privacy than other blockchain ecosystems. This technology shield’s users’information through stealth addresses and Ring signatures.
Stealth address identifies the creation of an individual address for a solo transaction. No two addresses may be pinned to an individual transaction. The coins received go into a many different address making the entire process unclear to an additional observer.
Ring signature, on the other hand, identifies mixing of account keys with public keys thus developing a “ring” of multiple signatories. This means a monitoring agent cannot link a signature to a particular account. Unlike cryptography (mathematical method of securing crypto projects), ring signature is not just a new kid on the block. Its principles were explored and recorded in a 2001 paper by The Weizmann Institute and MIT.
Cryptography has certainly won the hearts of many developers and blockchain aficionados, but the reality is, it’s still a nascent tool with a handful uses. Since Monero uses the already tested Ring signature technology, it’s set itself apart as a legitimate project worth adopting.
Things to understand before you start trading Monero
Monero’s market is comparable to that of other cryptocurrencies mua ban bitcoin. If you want to purchase after that it Kraken, Poloniex, and Bitfinex are a several exchanges to visit. Poloniex was the first ever to adopt it accompanied by Bitfinex and lastly Kraken.
This virtual currency mostly appears pegged to the dollar or against fellow cryptos. A few of the available pairings include XMR/USD, XMR/BTC, XMR/EUR, XMR/XBT and many more. This currency’s trading volume and liquidity record excellent stats.
One of the good reasons for having XMR is that everyone can take part in mining it either being an individual or by joining a mining pool. Any computer with significantly good processing power can mine Monero blocks with a few hiccups. Don’t bother choosing the ASICS (application-specific integrated circuits) which are currently mandatory for Bitcoin mining.
Despite being truly a formidable cryptocurrency network, it’s not so special as it pertains to volatility. Virtually all altcoins are extremely volatile. This will not worry any avid trader as this factor is what makes them profitable in the first place-you buy when costs are in the dip and sell when they are on an upward trend.
In January 2015, XMR was choosing $0.25 then did some jogging to $60 in May 2017 and it’s presently bowling above the $300 mark. Monero coin recorded its ATH (all-time high) of $475 on January seventh before it started slumping alongside other cryptocurrencies to $300. At the time of the writing, nearly all decentralized currencies come in price correction phase with Bitcoin teeter-tottering between $10-11k from its glorious ATH of $19,000.
Fungibility and adoption
Because of its ability to offer reliable privacy, XMR has been adopted by many individuals making its coins to be easily substituted for other currencies. In simple terms, Monero may be easily traded for something else.
All Bitcoins in Bitcoin Blockchain are recorded down, and therefore, when an incident like theft transpires, every coin involved is likely to be shunned from operating making them nonexchangeable. With monero, you can’t distinguish one coin from the other. Therefore, no seller can reject some of them because this has been of a bad incident.
Monero blockchain is currently one of the very trending cryptocurrencies with a substantial number of followers. Like most other blockchain projects, its future looks great albeit the looming government crackdown. Being an investor, you need to do your due diligence and research before trading in any Cryptocurrency. Where possible, seek help from financial experts to be able to tread on the right path.
Rodgers is a future Forex and cryptocurrency writer with a writing experience spanning over three years. His mission would be to writer practical and information-packed content that adds value to the lives of his readers.