Menu

Search

Menu

Search

A look at the highly popular privacy-focused cryptocurrency "Monero"

Monero is an open sourced highly popular privacy coin and the tenth most valuable cryptocurrency in terms of market cap.

 

There are two types of privacy coins:

Completely privacy - E.g Monero and Enigma

 

Optional privacy- E.g Dash and Navcoin

 

Monero comes under completely privacy coins which means that addresses of both sender and receiver and transactions amount involved in the transactions are private on the ledger. It is a version of Cryptonote that hides the sender, amount transaction broadcast, and receiver with ring signatures, RingCT,  and stealth addresses.

Why Monero is safe?

  • Untraceable
  • Unlinkable
  • Secure
  • Private
  • Analysis resistant

Consensus algorithm: Cryptonight

It uses Proof- of-Work algorithm known as CrytpoNight which comes from Cryptonote protocol. It is designed to be suitable for ordinary PC CPUs

CryptoNight is the technology mostly used by anonymous cryptocurrencies. It uses an open source public ledger like Bitcoin but the only difference is privacy. It groups the sender's public key with several other keys making it impossible to tell which party sent money and which party has received the money.

The algorithms behind Cryptonote will protect double-spending proof, Egalitarian proof of work, and adaptive network limits.

Ring Signatures

It is a type of digital signature that can be performed by any member of a group of users that each has keys. The signature only proves the message was created by someone from the group, but computationally infeasible to determine which group members' keys were used to produce the signature:

 

Unlinkable transactions:

Unlinkability is nothing that we can display your receiving address publicly but payments made to this address cannot be linked to it. This is possible using Diffie- Heliman exchange protocol, a receiver has multiple unique one-time addresses derived from his single public key.

The sender can produce only the public part of the key, whereas only the receiver can compute the private part. Hence the receiver is the only one who can release funds after the transaction is committed because they are the one who knows the secret view key.

Double Spending Proof:

Double spending is prevented in Cryptonote protocol using key images. Every signature has a key image a kind of fingerprint of the secret key. These key images are used to prevent double-spending.

Blockchain analysis resistance:

Monero promises high resistance against blockchain analysis. It reveals only one-time addresses and amounts that cannot be linked to any other transaction. Not repeating addresses and mixed keys in ring signatures make the whole blockchain resistant to analysis.

Egalitarian Proof-of-Work

Egalitarian Proof-of-Work is a version of POW that attempts to restore equal voting privilege to all participants in the consensus. It is easily applicable in normal CPUs but difficult to implement in special devices.

 

 

 

Monero

Bitcoin

Consensus algorithm

POW

POW

Privacy

Untraceable

No

Mining Hash Algorithm

Cryptonight

SHA-256

Transaction per second

3-7

4

Block time

120 seconds

10 mins

Recent Updates:

Monero's new network update will happen on Aug13th 2022. It is also called as v15 Monero network upgrade. The important features are  

Ring size to increase from 11 to 16. Larger ring sizes have a larger anonymity set.

Transaction size to get reduced by 5-7% on the upgraded bulletproof algorithm. It also improves typical verification performance. 

Multisig mechanism fixes including critical security patches

Feed change to improve the security and resilience of the network

 

Technical:

 

Bitcoin has broken $22500 level after long consolidation and is holding above that level. The pair hits a high of $23889 and is currently trading around $23685. Any close above $23887 (55-day EMA) confirms minor bullishness and a jump to $25000/$29040 likely. Major Altcoins also trading higher in the footsteps of bitcoin.

XMRUSD consolidates after a jump to $148.81. the pair surged more than 50% from a minor bottom of $97.30 and is currently trading around $145.50.

The Immediate resistance is around $150 and any break above targets $172/$180 (200- day MA).

On the lower side, near-term support is around $132, and any break below targets $115/$100.

It is good to buy on dips around $126-27 with SL around $100 for the TP of $180.

 

 

 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.