In preparation of the fourth episode of Crypto Nights, I chose to look at Monero and find out what it has in store for us. With technology advancing at a rate faster than we could have ever imagined, does Monero help protect our privacy or is it merely the future of the dark web?
What is Monero?
Derived from Esparanto, a constructed auxiliary language; Monero literally means coin. Launched in April 2014 by ‘thankful_for_today and was initially known as BitMonero. Monero’s key selling point focusses on privacy. The purpose is to provide users with complete anonymity whilst still being able to use the blockchain.
How does Monero keep your transactions private if it uses the blockchain?
it’s done through what is known as the “electronic cash triangle” which provides extra three levels of privacy. These include Ring Signatures, Stealth addresses and Ring Confidential Transaction.
- Ring signatures: Hides where the money comes from
- Stealth Addresses – hides where the money is being sent to
- RingCT (Ring Confidential Transactions) – hides the amount being transferred!
Is there a future for Monero?
While it can be used as a tool for people who want to hide illegal activity, the number of legal uses should not be overlooked.
If crypto currencies become widely accepted, there will be merchants unwilling for everyone to know exactly how much they are selling and to who, which is information available on a normal block chain. Between 2015-2016, the number of transactions with Monero has increased as well as the number of nodes going from just over 100, to 1,000.
As people become aware of their lack of privacy online, Monero might just be an important one for the future.