Monero (XMR) is known for being one of the most respected virtual currencies around the world. Indeed, it has the luck of being considered the largest privacy cryptocurrency in the market right now. Moreover, several users prefer it over Bitcoin (BTC) and other public blockchains.
Privacy is definitely one of the most important things in the crypto market. The founders behind Monero knew this. Due to this reason, they have created this virtual currency that continues to attract attention from several investors.
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Privacy in the Cryptocurrency Market
The cryptocurrency market is characterized by focusing on privacy. There are different systems that protect users’ identity, and this is also something that individuals pay close attention to. However, there is a very big problem.
Bitcoin (BTC) and Ethereum (ETH), are public blockchains. That means that they are open and visible to the entire world. The whole ledger can be seen and analysed by people or companies. In this way, it is possible for them to understand who sent a transaction, which was the initial wallet amount, and which address it was sent to, among other things.
Although Bitcoin and Ethereum do not require your name to operate, it is very easy for companies and blockchain analysis firms to link an email account, IP address or even your name with a specific transaction or wallet. With Monero and other virtual currencies, this does not happen.
What are Privacy Currencies?
As the name suggests, privacy currencies are digital assets that focus on privacy. They want to protect the information shared by individuals when sending o receiving a transaction on most of the public blockchains.
It is certainly uncomfortable to share our wallet balances, information and funds transferred. With privacy coins, we are able to hide this information if we want to do so. We are the owners of our information and others shouldn’t get access to it, if we do not want them to do so.
This is where privacy coins help the market become a safer and more private place. If we process a transaction, the information that we share becomes limited and it makes it almost impossible for third parties to get access at the information about our funds, wallets, previous balances and recipient addresses. However, privacy coins are usually linked by mainstream media and authorities to criminals that want to remain hidden.
What is Monero (XMR)?
Monero (XMR) is the largest privacy coin in the market. This virtual currency was created by Riccardo Spagni several years ago and it protects the information we share with others when sending or receiving a transaction.
Rather than making public all the information about the funds sent, the wallet we were using and the recipient address. This makes it not only more private for us and the recipient but also more secure, considering nobody else more than the sender and recipient know the information about a transaction.
Over the last years, Monero expanded and remained one of the largest cryptocurrencies in the world. This shows how important it is for crypto users to have the possibility to protect their information and data. Nonetheless, governments all over the world are taking different measures to reduce the impact of privacy coins such as Monero considering they make it easy for criminals to send and receive money without being detected.
Other Privacy Coins
There are many other privacy coins in the market right now. That makes it possible for individuals to select from a wide range of projects that are currently making it easy for users to send and receive funds.
Litecoin (LTC), despite not being a privacy coin, was expected to add some privacy features to protect users’ identity. Fungibility is one of the most important topics when using digital assets. Bitcoin and Ethereum are not fungible. Indeed, LTC is still not fungible.
That means that if we send a transaction from a BTC address that has been blacklisted, these BTC would not be able to be moved and the transaction will be rejected by some recipients. By using different solutions and technology, this problem gets solved. Litecoin will use the MimbleWible implementation that could make it easier for individuals to protect their information when using digital assets.
