VERDICT: Monero (XMR) is the top privacy-centric cryptocurrency based on the CryptoNote protocol, a secure, private and untraceable currency system. Monero uses a special kind of cryptography to ensure that all of its transactions are remain 100% unlinkable and untraceable. In an increasingly transparent world, you can see why something like Monero can become so desirable.
Introduction
Unlike most cryptocurrencies such as Bitcoin or Ethereum, where access to blockchain information is transparent and open to the public, Monero Coin operates in the field of private transactions.
Due to the very complex encryption of data in the Monero coin, no individual or organization is able to obtain information such as the sender and recipient address of the transaction or the amount of tokens sent in the transaction.
The purpose of Monero
Many users of cryptocurrency technology, after the growth and popularity of this market, have faced restrictions such as financial sanctions and pressure to pay taxes. Thus, organizations such as Chainalysis, which have the ability to scan and track transactions in blockchains, have sounded a dangerous alarm for the privacy of users in the cryptocurrency market.
Monero coin has been able to best protect users’ privacy by developing a blockchain in which transactions are encrypted by sophisticated algorithms. With this in mind, the Monero coin is used in all transactions where the parties to the transaction agree to non-disclosure of transaction information.
Another goal that Monero coin pursues is to increase the scalability of its blockchain during network congestion. In the following, in the dynamic scalability section, we will fully explain how and the theory to solve the scalability problem in the Monroe blockchain.
Technology
Monero cryptocurrency strives to provide a free, unsupervised trading environment. To develop this environment, Monero coin uses three technologies: Ring Signatures, Stealth Addresses, and Public Key Display for secure and private transactions.
Ring Signatures
Imagine 10 $1 bills with a thousand fingerprints and only one fingerprint belonging to the person who is the payer. In this situation, there is no way to establish a relationship between the payer and 10 $1 bills with a thousand fingerprints.
This theory demonstrates how the Ring Signatures technology works in Monero coin. By this mechanism, in each transaction, the information of one thousand transactions is mixed together, but this does not cause an error when sending and receiving the transaction.
Stealth Addresses
Imagine writing down a post office box instead of your home and residence address to receive a letter when registering the recipient’s address, and then receiving the letter from there. With this mechanism, there is no way to prove your connection and the letter through the recipient’s address.
In the Bitcoin cryptocurrency, the sender of the transaction must enter the exact address of the recipient’s wallet directly. But in Monero coin, by the Stealth Addresses feature, users can use an address such as a mailbox to receive a transaction and in the term of transactions are not returned to the user.
Public Key Display
The ability for anyone to access the public key in transparent blockchains such as Bitcoin and Ethereum is a big problem for banks or brokers. Because with this feature, the probability of losing customers by their competitors is very high. On the other hand, legislatures and financial crime watchdogs welcome free access to the public key in blockchain technology.
Monero coin has created a win-win deal between legislators, organizations, and users by making it possible to display and access the public key. In this way, investment organizations can provide access to the public key for legislators and regulators to provide evidence of illegal transactions.
Pros
Monero coin can be introduced as one of the most private cryptocurrencies.
It is impossible to track and return transactions to individuals.
Dynamic scalability makes the cost and speed of transactions at their best when the network is busy.
Optional public key display and wallet data.
The technical team working on the Monero project has previously worked on the Bytecoin blockchain and is quite proficient and professional.
Cons
There are not many wallets to support Monero coin.
Monero trades are not supported in coinbase Exchange.
Many black hat hackers and people working on the Dark Web use Monero currency.
There are no completely safe ways to save Monero coin.
Use of Monero coin by countries under sanctions for international payments.
