For most Monero (XMR) users, they choose this cryptocurrency because of its security. Monero is a popular choice for those searching for a cryptocurrency that promises anonymous transactions. It is not a secret that the popular ones today utilise transparent blockchains, which means that the transactions can be verifiable without much difficulty.
Using an openly verifiable blockchain has the potential to be traced and associated to the person behind the account. The cryptocurrencies with this trait include Ethereum and Bitcoin. However, Monero is quite exceptional. In fact, it was built from scratch using the CryptoNight algorithm, making it an effective anonymous crypto.
The CryptoNight algorithm allows the user to have his or her transaction made unintelligible or highly obscure. Therefore, whenever you use XMR, all the transactions, such as sending and receiving, along with the amounts transferred, will remain confidential. The anonymity is one of the biggest reasons why Monero is among the top choices when it comes to market capitalisation.
Monero Security vs. Bitcoin and Other Altcoins
Directed Acyclic Graph (DAG) technology and crypto are both complicated, even if you are among those who are truly interested in them. However, one of the main reasons why these cryptocurrencies were created was due to the need to stay anonymous. Customers were demanding to engage in online transactions without giving up their personal details. It was impossible at that time to keep a person’s anonymity because most of the payment methods required credit or debit cards.
When Bitcoin was introduced, it paved the way for users to create decentralised currency, which is the blockchain’s praised characteristic. However, what most people do not know is that decentralised currency does not also mean anonymity. In truth, Bitcoin, along with most other altcoins out there, expressly identifies the coin used in all the transactions on its blockchain.
Since the blockchain is immutable, it claims to provide both trustless transactions and decentralisation. Unfortunately, these traits allow the government agencies or hackers to trace the transactions on the chain – even back to the public keys of the users. Worse, it is possible to link each business to the individuals themselves, particularly those who created the accounts.
There is also the issue regarding distributed ledgers, such as a blockchain for Bitcoin. It denotes that the traceability becomes permanent so it will persist as long as the blockchain is in existence.
Certain people want complete anonymity with their transactions. If you are among them, you will find Monero a better choice than Bitcoin, Ethereum, and all the others. Monero is actually a response to this anonymity issue with Bitcoin and other altcoins. It was created to mitigate these traceability concerns while focusing on protecting the privacy of the users.
Monero uses mixins, which are chaff outputs that serve as decoys when the cryptocurrency records various outputs to its blockchain whenever a transaction takes place. Monero’s success is mostly due to its ability to keep all deals anonymous, which means it is the safer alternative to Bitcoin. Try Monero and keep your coins safe in one place at XMRWallet.com.