Among the core precepts of the blockchain technology is to provide users with unwavering privacy. Bitcoin as the first ever decentralized cryptocurrency relied on this premise to market itself to the wider audience that has been then in need of an electronic currency that is free from government meddling.
Unfortunately, along the way, Bitcoin turned out to be 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 anybody to get in touch the dots and unveil users’private details based on the existing records. Some government and non-government agencies are actually 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 brilliant projects is Monero, usually represented by XMR ticker.
What is Monero?
Monero is a privacy-oriented cryptocurrency project whose main aim is to provide 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 can 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 creating a “ring” of multiple signatories. This means a tracking agent cannot link a trademark to a certain account. Unlike cryptography (mathematical method of securing crypto projects), ring signature is not 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 fact remains, 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 prior to starting trading Monero
Monero’s market is comparable to that of other cryptocurrencies san giao dich bitcoin. If you wish to get after that it Kraken, Poloniex, and Bitfinex are a several exchanges to visit. Poloniex was the first to adopt it followed closely 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 very good stats.
Among the good things about XMR is that anyone 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 several hiccups. Don’t bother choosing the ASICS (application-specific integrated circuits) which are currently mandatory for Bitcoin mining.
Despite being a formidable cryptocurrency network, it’s not special when it comes to volatility. Nearly all altcoins are really volatile. This should not worry any avid trader as this factor is what makes 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 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. During the time of this writing, practically 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
Because 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 can 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 will be shunned from operating making them nonexchangeable. With monero, you can’t distinguish one coin from the other. Therefore, no seller can reject any one of them because it’s been associated with a bad incident.
Monero blockchain is currently one of the very trending cryptocurrencies with an important quantity of followers. Like most other blockchain projects, its future looks great albeit the looming government crackdown. Being an investor, you have to do your due diligence and research before trading in any Cryptocurrency. Where possible, seek help from financial experts in order to tread on the best path.
Rodgers is a budding Forex and cryptocurrency writer with a writing experience spanning over three years. His mission is to writer practical and information-packed content that adds value to the lives of his readers.