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 advertise itself to the wider audience that was then in need of an electronic currency that is clear of government meddling.
Unfortunately, on the way, Bitcoin became rife with several weaknesses including non-scalability and mutable blockchain. All of the transactions and addresses are written on the blockchain thus rendering it easier for everyone to get in touch the dots and unveil users’private details based on their existing records. Some government and non-government agencies happen to be using blockchain analytics to see data on Bitcoin platform.
Such flaws have resulted in developers looking into alternative blockchain technologies with improved security and speed. One of these simple projects is Monero, usually represented by XMR ticker.
What is Monero?
Monero is really 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 a single address for a solo transaction. No two addresses may be pinned to a single transaction. The coins received enter a totally different address making the entire process unclear to an additional observer.
Ring signature, on another hand, identifies mixing of account keys with public keys thus developing a “ring” of multiple signatories. What this means is a tracking agent cannot link a signature to a specific account. Unlike cryptography (mathematical approach to 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 numerous developers and blockchain aficionados, but the truth 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 know prior to starting trading Monero
Monero’s market resembles that of other cryptocurrencies mua ban bitcoin. If you want to purchase after that it Kraken, Poloniex, and Bitfinex are a some of the exchanges to visit. Poloniex was the first ever to adopt it followed 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 great stats.
One of the good reasons for XMR is that anyone can take part in mining it either as 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 going for the ASICS (application-specific integrated circuits) which are still mandatory for Bitcoin mining.
Despite being fully a formidable cryptocurrency network, it’s not too special when it comes to volatility. Virtually all altcoins are extremely volatile. This would not worry any avid trader as this factor is why is them profitable in the first place-you buy when prices are in the dip and sell when they’re on an upward trend.
In January 2015, XMR was going for $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 with this writing, almost all decentralized currencies are in price correction phase with Bitcoin teeter-tottering between $10-11k from its glorious ATH of $19,000.
Fungibility and adoption
As a result of its ability to provide reliable privacy, XMR has been adopted by many people 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 going to be shunned from operating making them nonexchangeable. With monero, you cannot distinguish one coin from the other. Therefore, no seller can reject some of them because this has been of a bad incident.
Monero blockchain happens to be one of the very most trending cryptocurrencies with a significant quantity of followers. Similar to 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 just about 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.