For most cryptocurrency users, the need for secure, private and anonymous transactions occupies a central part when it comes to choice of a cryptocurrency. While blockchain was developed to offer decentralized and anonymous transactions, the use of open-source ledgers means that platforms have become pseudonymous, since public addresses are accessible.
That is precisely why privacy-centric cryptocurrencies emerged. They are designed to offer users privacy and complete anonymity as they transact online. Although there are a number of cryptocurrencies that privacy oriented, Monero seems to be the one that offers a platform to transact privately and anonymously.
So, why do we say that Monero is more secure than any other cryptocurrency?
Monero (XMR) has several features that make it stand out as a secure cryptocurrency: untraceability of transactions, the privacy of wallets through Stealth address, fungibility of transactions, obfuscation using Kovri, and RCT. On websites like aBitGreedy.com to find out how to buy Monero (XMR) and other interesting facts about this community developed cryptocurrency.
Untraceability of transactions on the Monero blockchain
Monero is a privacy-centric crypto that is anonymous and secure. The cryptocurrency has features that protect both the sender and recipient in a transaction. It achieves these through the use of Stealth Addresses and a feature called Ring Signatures.
It is also worth noting that all transactions done in XMR are anonymous by default, unlike other cryptocurrencies that offer opt-in options. The moment a user transacts in Monero, all their footprints are masked by the network’s protocol, making it impossible to track transactions.
If someone were to use the blockchain to try tracking you, Monero makes it impossible by obfuscating all traces to the receiver’s IP address. You cannot pinpoint the address form which a payment was made. Even the receiver of a payment made in Monero cannot tell from who the transaction originates, unless they gave out a unique payment ID and that the transaction corresponds to it.
Even then, only a transaction timestamp will be visible to a second party and not the receiving address of the Monero payment.
Stealth Addresses make transactions unlinkable to the recipient. An honest user may receive funding anonymously, not aware of the funds’ origin. Aid organizations, for instance, can benefit from this feature; receive donor funding from well-wishers whose privacy is also provided by the Ring Signature feature.
Monero’s Stealth Addresses ensures the recipient’s privacy and security during transactions. What the stealth address does is to obfuscate any transaction done on a user’s private address. Every time you transact using Monero, the system creates a new address that can only be used once.
This one-time address is never linked to your public key, making it impossible for you to be tracked using your public address information. What’s more, this information isn’t recorded on the public blockchain. The unlinkability is made irreversible by way of a secure cryptographic protocol.
The use of ring signatures ensures that transactions can’t be traced back to a certain sender using information available on the blockchain. When you send money through Monero, the system uses what is called ‘mixing outputs” to make it harder for anyone to categorically say that this transaction was made by you. To achieve this, Monero uses one-time digital fingerprints to mix your transaction with thousands of other transactions. The ring signatures make it impossible to trace the address of the sender, offering privacy and security to the sender.
Monero’s Fungibility is great for wider adoption
Simply put, fungibility means Monero cannot be blacklisted by merchants for reason of associating coins with a crime. In other words, at any point your coins are not going to be rejected because they are suspected or linked to some dark use like drug trafficking, theft or so.
Fungibility makes the coins equal in value and can’t be distinguished whatsoever. This is because Monero’s transactional history is untraceable and therefore, there’s no way of telling which coins are tainted and which are not.
Though it may be criticized as offering a haven to criminals on the dark web, (marketplaces like AlphBay and Oasis have adopted XMR), Monero also does have positive use cases.
If I am an investor who buys Monero that is actually linked to the WannaCry hackers, I don’t have to worry because nobody will shun my coins. You cannot distinguish one XMR coin form another.
The bottom line is you may have nothing to do with the said crimes, so Monero offers you, as an innocent user, security through fungibility.
Ring CT makes Monero secure
The implementation of RCT (Ring Confidential Transactions), adds another dimension to the issue of security offered by Monero. Most other cryptocurrencies do not hide the amounts involved in a transaction.
With Bitcoin, for instance, your public key gives another party the access to your transaction history. But that is not possible with Monero. The Monero blockchain hides all transactions, including what the transactions involved. Even with the View Key, one can only be able to see that transactions took place, but not who or what amounts were involved.
IP Obfuscation using the Kovri Protocol
Kovri is a project by Monero that provides free anonymity through I2P-based obfuscation technology. It utilizes garlic encryption and routing to allow a user the freedom to hide their geo-location and importantly, their IP addresses.
Kovri makes use of the internet secure by anonymizing traffic. When you use Monero, the Kovri protocol will hide your internet history by creating an overlay that obfuscates your IP.
Even though cryptocurrency began with the promise of privacy and anonymity, most of the major virtual coins are to a large extent open and transparent. Every time you transact on these blockchains, you leave a footprint through the public ledger. What this means is that someone with access to the blockchain can use information unwittingly given out to trace a transaction, linking it back to the real user.
However, this isn’t a problem with the Monero blockchain. The privacy features in place ensure a user’s privacy and security are guaranteed. A lot is being done to improve on these elements even further. Monero is already in a great position because the future of cryptocurrency is in privacy and anonymity. We hope this article is useful for you. Make sure to visit our website more often and keep up with everything crypto happening around the world. Thank you and until next time.