One of the core suggests of Blockchain technology is to provide users with unshakable privacy. Bitcoin as a decentralized Cryptocurrency first relied on this premise to market itself to a wider audience which then requires a virtual currency that is free from government interference.
Unfortunately, along the way, Bitcoin has proven full of several disadvantages including non-scalability and blockchain that can change. All transactions and addresses are written on the blockchain so that it makes it easier for anyone to connect the dots and uncover the personal details of users based on existing records. Some government and non-government institutions have used Blockchain Analytics to read data on the Bitcoin platform.
Such defects have caused developers to see alternative blockchain technology with increased security and speed. One of these projects is Monero, usually represented by Ticker XMR.
What is Monero?
Monero is a privacy-oriented Cryptocurrency project whose main goal is to provide better privacy than other blockchain ecosystems. User information This technology shield through the stealth address and ring signature.
Stealth address refers to the creation of one address for solo transactions. There are no two addresses that can be pinned to a single transaction. The coins received into a completely different address make the whole process unclear to external observers.
The ring signature, on the other hand, refers to the mixing of the account button with a public key so that it creates a “ring” of some signatories. This means that monitoring agents cannot connect the signature to a particular account. Unlike cryptography (mathematical method securing the Crypto project), ring signatures are not new children on the block. The principles are explored and recorded in 2001 papers by the Weizmann Institute and MIT.
Cryptography certainly won the hearts of many developers and blockchain fans, but the reality is, it is still a tool that has just been used. Because Monero uses the technology signature technology that has been tested, it has distinguished itself as a legitimate project that adopts.
Things that need to be known before you start trading Monero
Monero market is similar to other cryptocurrency. If you want to buy it then Kraken, Poloniex, and Bitfinex are some exchanges to visit. Poloniex was the first to adopt it followed by Bitfinex and last Kraken.
This virtual currency mostly looks pegged on dollars or against fellow Crypto. Some pairs are available including XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and more. The trading volume and liquidity of these currencies record very good statistics.
One good thing about XMR is that anyone can take part in mine either as an individual or by joining the pool. Every computer with excellent processing power can mine monero blocks with some hiccups. Don’t bother going for ASICs (special integrated application circuits) which is currently mandatory for bitcoin mining.
Even though it becomes a tough Cryptocurrency network, it’s not so special in terms of volatility. Almost all Altcoin is very fluctuating. This should not worry about every trader who is diligent as this factor is what makes them profitable in the first place – you buy when prices are in and sell when they are in the trend of rise.