Monero (XMR) was developed in the early phases for the cryptocurrency market development. It was a required proposition to maintain anonymity while spending or receiving money in digital form.
BITCOIN VULNERABILITY VS MONERO’s PRIVACY
The public address of Bitcoin (BTC) give details of all the transactions that ever took place from that wallet. This feature of Bitcoin makes the holder vulnerable to old and simplest kinds of threats or mugging.The BTC public address gives the details of all transactions which makes the user vulnerable! Click To Tweet If the sender uses Bitcoins to make payments, the public address and wealth of the spender is also shared with the merchant and vice-versa. Now all it takes is a knife or even a makeshift gun to leave Mr. XYZ penniless, in this case satoshi-less.
THE BETTER ALGORITHM
Monero also follows POW (Proof Of Work) algorithm like Bitcoin which requires the miners to provide proof of work in the form of solving a complex mathematical problem and approve the transactions.
The block time of Monero is five times faster than Bitcoin. Monero is ASIC resistant, hence mining is more decentralized than that of Bitcoin. Due to the rise of ASIC devices in China, it is believed that up to 70% of the Bitcoin miners are located in China. This location wise centralization brings adverse news to the global holders and makes the initial supply of Monero that can be mined is similar to that of Bitcoin 18.4 million coins. However, after reaching this number Monero will be released constantly at a rate of 0.3 XMR per minute to the miners who support the network later. This provides financial security to the miners and also gives space for an unavoidable economic process – inflation.
REAL SCALE ADOPTION AND ROADBLOCKS
During the earlier days in cryptocurrency (2010-2012) there were only a handful of Bitcoin traders on the planet. The currency is said to have been accepted and became popular on the silk road, the most popular Dark web channel used to supply illegal goods and services, this is where Bitcoin and Monero has some similarities.
It is no big secret that despite the efforts by the police authorities all sorts of illegal activities from arms and ammunition to drugs are being circulated on a daily basis. Bitcoin became infamous to the general crowd because of this early bad publicity. Moreover, its volume and price also grew exponentially before the Mt. Gox heist in 2011. Monero also draws the same kind of crowd because of its added privacy and non-tractability feature. Alphabay and Oasis are popular dark web market place which can be accessed only via the tor browser accepting Monero.
Monero ledger maintains anonymity and it is the number one privacy focused cryptocurrency. The algorithm of Monero makes Bitcoin’s algorithm look like a thing of the past.XMR maintains anonymity and privacy is the number one focus! Click To Tweet
The transactions on the Monero blockchain are completely anonymous, hence when A sends Monero to B, the balance on B’s wallet is updated in two minutes but no one can trace the transaction to A or B from the data recorded on the public ledger. This maintains the privacy of the spender.
This is an important aspect of security which is covered in credit/debit cards as well. However, in case of dispute the authorities can easily track the money from the bank accounts and solve the issue and punish the offender. Monero is private and untraceable, hence the work of the authorities in solving crime doubles up. Monero, hence, has a big hurdle ahead if it needs global Government acceptance.
Monero is the coin of choice of people who require privacy related to their money and wealth, and miners looking for a stable ROI. Whereas Bitcoin is the benchmark for cryptocurrencies and it’s market, Monero is the dark sturdy horse that is highly recognized. While most of the other cryptocurrencies are apprehensive of zero valuation Monero with its added privacy and history provides more assurance of its longevity.