The world’s top cryptocurrencies and blockchains, Bitcoin and Ethereum, do not keep your transactions as private as you might think. So what does the future hold for privacy-focused blockchains like Monero?
All you need to know about Monero XMR
According to Coinmarketcap, Monero (XMR) is ranked 37th in the crypto worldwide market cap. With a price of $269 and a market capitalization of $4,848,975,817, XMR has achieved full scalability and operates on its own blockchain.
More About Monero
It was first introduced in 2014 with a simple goal, allow transactions to take place privately and anonymously. It was born from its predecessor, Bytecoin, a privacy-focused and decentralized cryptocurrency launched in 2012. Right until “thankfulfortoday,” a member of the Bitcointalk forum hard forked Bytecoin’s codebase and gave birth to Monero. Privacy2.0, as I would call it.
Most people believe the bitcoin network conceals a person’s identity and transaction details. But in reality, it records every transaction on its blockchain and can trace back any payment to its original source. The bitcoin blockchain is built on an open-source and transparent network. In contrast, the Monero blockchain is designed to conceal senders’ and recipients’ transaction details and personal information using advanced cryptography. Monero’s secure and privately built network makes it a popular choice for users who value privacy and want to make Crypto payment transactions under the radar.
Why Privacy Matters in the Crypto sphere
As crypto regulations and taxes begin to rise in the near future, the need for secure and untraceable payment options will increase, putting Monero in line for bulk transactions on its blockchain. This will increase its market cap by a significant percentage.
The world’s first cryptocurrency, Bitcoin, was created with the purpose of decentralization of money. Bitcoin’s early years were private and very secure due to lack of exposure, but with it becoming more mainstream and with many other (Dapps) Decentralized apps on its network, privacy is a thing of the past.
Privacy on the Monero Blockchain
So why is Monero designed with such a level of confidentiality? Asides from being built in 2014 by a team of anonymous developers, there is also a rumour that Satoshi Nakamoto, Bitcoins founder, built the network. This conception could’ve risen from the air of mystery that obviously surrounds the coin!
By default, transactions on the Monero network obfuscate. This means that it disguises the sending and receiving wallet address as well as the transaction amount, making tracing the recipient/sender virtually impossible. For other cryptocurrencies like Z-cash, users can choose to turn on their privacy features. But privacy features of Monero are always on, which means that the activities of one XMR user will intensify the privacy of all the other users.
How are Monero Tokens Created?
There are over 17 million Monero coins in circulation, and they are all created through a mining process. It takes approximately two minutes to mine one block. It is easy to mine blocks of XMR without the hash power and power supply that Bitcoin mining requires. Miners do not need any specific hardware to mine Monero. It is easy, and you can do it on our platform.
Also, it is compatible with almost all advanced operating systems such as Windows, Android, Linux, and macOS. The Proof-of-Work algorithm Monero uses is designed to be accessible to a wide range of processors.
What makes Monero Unique?
Aside from offering complete security, privacy, and anonymity, the project aims to achieve the highest level of decentralization possible where users don’t need to trust anyone else on the network.
A few areas where XMR shines above other cryptos in the market;
Fungibility: Cryptocurrency usage can be monitored. Bitcoin has a serial number for every coin in circulation whereas XMR is entirely Fungible.
The obfuscated nature of transactions on the network makes it virtually impossible to determine the records of any particular XMR tokens. This feature is particularly huge for money because fungibility is necessary for anything to be regarded as a currency.
Decentralized Network: Monero’s network is built in a way where its ledger and database servers are spread globally, making it difficult for it to be controlled or censored by the government. Suppose a government tried shutting down XMR nodes in their country. Their efforts would be futile. Users’ transactions will continue to be processed on the network.
Extreme Privacy Features on the Monero Network
Obfuscation on the network is managed through the use of ring signatures. It is affected as past transactions are picked randomly on the blockchain to act as decoys so that outside observers can’t tell who signed it. For example, If Mary were sending 100 XMR to Sarah, the amount would be split into random chunks to add an extra level of difficulty. Also, to ensure that transactions on the network cannot be linked to each other, unique stealth addresses are generated for each transaction, which you can only use once!
These powerful security features have led to XMR being used for illicit activities. According to reports on CNBC, Criminals now prefer to transact using XMR over Bitcoin! They claim that Monero is now the most used cryptocurrency for ransomware criminals. Governments worldwide, including the U.S., have offered thousands of dollars to anyone who can crack Monero’s code.
Will Monero Go Mainstream?
It will be a long and bumpy road before Monero reaches the world’s top 10 positions of Cryptocurrencies. However, it’s not impossible. With regulations cracking down on cryptocurrencies and Companies moving their balance sheet to BTC, there is a growing need for privacy in the crypto sphere. Especially for individuals and businesses who want to transact large sums in private.
