One of the fundamentals of blockchain technology is to provide users with flawless privacy. Bitcoin as the first decentralized cryptocurrency so far relied on this premium to sell to a wider audience who then needed a virtual currency in the shelter of the world. Government interference.
Unfortunately, along the way, Bitcoin has been revealed to be rich in several weaknesses, including non-scalability and mutable blockchain. All transactions and addresses are written to the blockchain, which facilitates the task of connecting points and disclosing users. private details based on their existing records. Some government and non-government agencies are already using blockchain analysis to read data on the Bitcoin platform.
These weaknesses have led developers to seek alternative blockchain technologies with improved safety and speed. One of these projects is Monero, usually represented by an XMR symbol.
What is Monero?
Monero is a cryptocurrency project focused on privacy and whose main objective is to provide better privacy than other blockchain ecosystems. This technology protects users. information via stealth addresses and ring signatures.
The stealth address reiterates the creation of a unique address for a solo transaction. Two addresses can not be pinned to a single transaction. The received pieces have a totally different address, which makes the whole process blurry for an external observer.
The signature of the ring, meanwhile, refers to the mix of account keys with public keys that creates a "ring" of multiple signatories. This means that a monitoring agent can not bind a signature to a particular account. Unlike cryptography (the mathematical method of securing cryptographic projects), the ring signature is not new. Its principles have been explored and documented in a 2001 paper by the Weizmann Institute and MIT.
Cryptography has certainly captured the hearts of many developers and blockchain aficionados, but the truth is that it is still a nascent tool for useful uses. Since Monero uses Ring signature technology already tested, it has distinguished itself as a legitimate project that is worth adopting.
What you need to know before you start trading Monero
Monero's market is similar to that of other crypto-currencies. If you want to buy it, Kraken, Poloniex and Bitfinex are some of the changes to visit. Poloniex was the first to adopt it, followed by Bitfinex and finally Kraken.
This virtual currency seems mainly related to the dollar or other cryptos. Some of the available couplings include XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and many others. The volume of transactions and the liquidity of this currency record very good statistics.
One of the benefits of XMR is that everyone can participate in mining as an individual or by joining a mining pool. Any computer with significant processing power can exploit the Monero blocks with some failures. Do not bother with ASICS (application-specific integrated circuits), which are currently required for bitcoin extraction.
Although this is a great cryptocurrency network, volatility is not that special. Virtually all altcoins are extremely volatile. This should not worry eager traders because it is this factor that makes them profitable in the first place: you buy when prices are going down and you sell when they are on the rise.
In January 2015, XMR was selling for $ 0.25, then jogging for $ 60 in May 2017. It was already over $ 300. The Monero coin recorded its ATH (absolute record) of $ 475 on January 7 before starting to slide alongside the other $ 300 encrypted currencies. At the time of writing these lines, the fully decentralized treaties were in the 10-11k price correction phase of his glorious ATH of $ 19,000.
Fungibility and adoption
Thanks to its ability to offer reliable confidentiality, XMR has been adopted by many people, making its coins an easy substitute for other treaties. In simple terms, Monero can easily be exchanged for something else.
All Bitcoins in Bitcoin Blockchain are registered and, therefore, when an incident such as a robbery occurs, all the parts involved are avoided and can not be exchanged. With monero, you can not distinguish one coin from the other. Therefore, no seller can refuse one because it has been associated with a serious incident.
The blockchain of Monero is currently one of the crypto-currencies most popular with a large number of members. Like most other blockchain projects, its future is bright, despite the government's imminent crackdown. As an investor, you must exercise due diligence and research before negotiating a cryptocurrency. Whenever possible, use financial experts to get you on the right track.