So, what is Monero? It is often seen as the leading privacy coin in the world of cryptocurrencies. Before we dive into that, first, we need to know that the majority of cryptocurrencies utilize public blockchain system with transparent transactions. For example, both Bitcoin and Ethereum have open-to-all transactions where everybody can verify and can see the transactions. This kind of policy is great, but it is often criticized as well because many people want to be discreet when it comes to money. People feel sensitive when the public can see and track their transactions. This is why privacy is considered a very important factor when it comes to moving money
The Confidentiality Of Monero
All default XMR transactions are “hidden” to make sure user privacy is protected. Sending and receiving address as well as the amount of transactions are obfuscated. Monero team claim they do it differently from other privacy coins such as ZCash whereas with Monero your obfuscated transactions are always on by default. At the time of this writing, Monero team are still researching what they call as The Kovri Project. For you who don’t know, Kovri Project will route and encrypt all transactions within Monero blockchain through I2P (Invisible Internet Project) nodes. The idea is to improve the untraceability of Monero transactions further.
One very important use case of Monero is the transaction unlinkability. The idea is that nobody else (except the recipient and sender) should be able to trace the transaction. Monero calls it ‘stealth addresses’. Basically, the sender will have to use the recipient’s public view and public send keys to create a public key that can be used once. This one-time public key then will generate a stealth address without revealing the public addresses.
The History of Monero
In July 2012, there was a coin called Bytecoin. Bytecoin had many shady issues despite being a promising coin. Because of all the controversies in the past, some people opted to fork Bytecoin and the new chain was called Bitmonero before they rebranded it to Monero. The literal definition of Monero is “coin” in Esperanto auxiliary language. Monero is led by 7 different developers and 5 of them opted to be anonymous while the other two (Riccardo Spagni and David Latapie) decided to be public with their face.
The Monero project itself was funded by the public. Monero has 30 core developers with more than 500 developers in total if you count everybody who has contributed to the project.
The Potential Of XMR In The Future Of Cryptocurrencies
Considering Monero is the face of privacy cryptocurrency, the future of Monero looks both positive and negative. Positive because there’s always a need for a privacy coin. Negative because it seems regulators from all around the world want to make sure nothing could be hidden from their eyes. Monero team believe that an electronic cash should always fulfill the purposes of being digital, decentralized, and private. They believe there should never be any compromise to the privacy and decentralization factor.
Monero Coin (XMR) On The Crypto Market
Let’s talk about the most important factor for crypto trader, the price. Nobody really cares about a certain coin if the price is not really doing well on the market. Well, XMR is currently sitting on the 10th position, and its position on the cryptocurrency rankings is often seen as how important privacy coins are in the eyes of crypto traders. Sometimes XMR falls out of the top 10 rankings but eventually it always comes back. XMR is currently trading at ~$92.70 and it is trading with huge liquidity ($103 million USD per day). Just like other altcoins, Monero is also a victim of Bitcoin market dominance this year.
XMR/BTC trading pair on Binance, for example, has more than $4 million daily trading volume. While XMR is seen as privacy coin but there’s no hard evidence that many people actually use XMR more than Bitcoin when it comes to ‘hidden’ transactions. Apparently, most people still use XMR to trade to other coins. In other words, people buy and sell this coin for speculation purposes.
Monero is one of the biggest pioneers of privacy coins and many Monero believers believe Monero is more technologically advanced than other privacy coins such as ZCash. The future of XMR is still pretty much questionable at the moment, but this is just like every other crypto out there. While many people believe privacy coins will always have a place in cryptocurrencies future but some other people believe they will never be able to escape governments’ regulation.
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