One of the main precepts of blockchain technology is to provide users with constant privacy. Bitcoin, as the world’s first decentralized cryptocurrency, relied on it to sell itself to a broad audience that then needed a virtual currency free from government intervention.
Unfortunately, along the way, bitcoin has proven to be a number of weaknesses, including scalability and a changeable blockchain. All transactions and addresses are recorded on a blockchain, making it easy for anyone to connect points and disclose private user information based on existing records. Some government and non-governmental agencies already use blockchain analytics to read data on the Bitcoin platform.
Such flaws have led developers to consider alternative blockchain technologies with improved security and speed. One such project is Monero, usually represented by an XMR ticket.
What is Monero?
Monero is a privacy-focused cryptocurrency project whose main goal is to provide better privacy than other blockchain ecosystems. This technology protects user information through hidden addresses and ring signatures.
An open address is the creation of a single address for an individual transaction. Two addresses cannot be linked to one transaction. The received coins go to a completely different address, which makes the whole process incomprehensible to an outside observer.
On the other hand, a ring signature involves mixing account keys with public keys, thus creating a “ring” of multiple signatories. This means that the monitoring agent cannot associate a signature with a specific account. Unlike cryptography (a mathematical method of securing crypto projects), a ring signature is not a new child. Its principles were studied and recorded in a 2001 article by the Weizmann Institute and MIT.
Cryptography has certainly won the hearts of many blockchain developers and fans, but the truth is that it is still a nascent tool with multiple uses. Because Monero uses the already proven Ring signature technology, it has identified itself as a legitimate project to be adopted.
What you need to know before you start trading Monero
The Monero market is similar to the market for other cryptocurrencies. If you want to buy it, then Kraken, Poloniex and Bitfinex are a few exchanges to visit. Poloniex was the first to adopt it, followed by Bitfinex and finally Kraken.
This virtual currency basically looks like pegged to the dollar or against crypts. Some of the available pairings include XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and more. The trading volume of this currency and liquidity record very good statistics.
One of the good things about XMR is that anyone can participate in mining either as a person or by joining a mining pool. Any computer with much good computing power can extract Monero blocks with a few hiccups. Don’t bother going for ASICS (Integrated Circuits), which are currently required for bitcoin mining.
Despite the formidable network of cryptocurrencies, it is not so special when it comes to volatility. Virtually all altcoins are extremely volatile. This should not worry any avid trader, because it is this factor that makes them profitable in the first place – you buy when prices fall, and sell when they tend to rise.
In January 2015, the XMR was worth $ 0.25 and then ran up to $ 60 in May 2017, and now it’s bowling above the $ 300 mark. The Monero coin recorded its ATH (all-time high) of $ 475 on January 7 before it began falling along with other cryptocurrencies to $ 300. At the time of writing, almost all decentralized currencies are in the price correction phase, and bitcoin ranges between $ 10-11 thousand from its glorious ATH of $ 19,000.
Validity and adoption
Due to its ability to provide reliable privacy, XMR has been adopted by many people, making its coins easily exchanged for other currencies. Simply put, Monero can be easily exchanged for something else.
All Bitcoins in the Bitcoin Blockchain are recorded, and so when an incident like theft happens, every coin involved avoids work, making them unchanged. With monero you can’t tell one coin from another. Therefore, no seller can refuse any of them because it was due to a bad incident.
Currently, the Monero blockchain is one of the most trending cryptocurrencies with a significant number of followers. Like most other blockchain projects, its future looks great, though looming government repression. As an investor you need to conduct proper checks and research before trading any cryptocurrency. If possible, seek the help of financial experts to get on the right track.