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Monero has become one of the world's most prominent privacy-oriented digital currencies. This digital asset uses innovative technology that allows users to shield not only the sender and recipient in a transaction but also the amount sent.
This privacy-oriented digital currency has become increasingly popular as darknet users leverage its privacy-concealing features.
Its growing visibility has helped Monero's price and market capitalization rise, and at the time of this writing, Monero was the eleventh-largest digital currency, according to CoinMarketCap.
The Problem and Solution
While many consumers value financial privacy, many high-profile hacks have taken place, resulting in these consumers having their key information compromised. By making their transactions anonymous, consumers can protect this information from those who would use it for nefarious ends.
Monero shields the privacy of its users through stealth addresses and ring signatures. Stealth addresses are one-time addresses that senders create for their recipients every time they make a transaction.
Basically, a recipient can publish one public address, and then have all funds sent to separate addresses, which in turn cannot be connected to his or her public address.
Ring signatures help further obscure the identity of senders and receivers. A ring signature is a type of digital signature that can be signed by anyone with a specific type of key. A ring is created by mixing a user's account keys with public keys obtained from the blockchain. All keys in this ring are equal and valid. Once a key is used, it cannot be distinguished from the other keys in the ring by outside observers.
Monero also implemented an update called RingCT, short Ring Confidential Transactions, which enables users to obscure the amount of any transaction.
It is important to keep in mind that Monero transactions are private by default, meaning that if you want someone to view your transactions, you can provide them with a private view key.
However, keep in mind that anyone with that private view key will only be able to see your incoming transactions. Any outgoing transactions cannot be reliably viewed using this method.
The Monero token trades under the ticker symbol XMR.
By buying XMR, you are basically obtaining a speculative asset. Its value could go up substantially after you make the purchase, but the digital token's price could also plummet.
If you are thinking about purchasing XMR, keep in mind that investing is risky, and due diligence is crucial. Fortunately, there are many resources out there reviewing the digital currency's price movements, along with explanations of why they are taking place.
Monero is a perfect example of how keeping up with the digital currency space can require significant research.
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Bitcoin Market Journal analyst briefing for Monero.
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