On the other hand, the digital currency has an adaptive blocksize, avoiding the transaction capacity limitations of bitcoin’s fixed 1MB. It further has far lower confirmation times than bitcoin, making commerce slightly more convenient. Leading Silkroad like markets, such as AlphaBay and Oasis, to add Monero due to its anonymity features and as a potentially more convenient method of payment. The move brought attention to the currency and sent its price skyrocketing at the time, but if transaction volumes are any indication it does not appear to attract much use.
Monero, the fifth largest digital currency with a market cap of nearly $200 million, has successfully hardforked yesterday to add higher levels of privacy and anonymity by implementing an adapted version of Confidential Transactions.
The networks’ near 650 visible full nodes have made the transition without any noticeable problem so far, with the market responding positively as indicated by an increase in Monero’s price of more than 4.5% at the time of publishing.
Image from Shutterstock.
Monero’s Price Following a Hardfork to Implement Confidential Transactions. Chat Courtesy of Poloniex
The new invention is now enabled by default, with a planned hardfork in September enforcing the added level of privacy on all transactions, making monero one of the most anonymous digital currency, but it comes at a fairly high cost. One average monero transaction takes more than 4kb of space, increasing to around 6kb per transaction with RCT, compared to an average of 400 bytes per bitcoin transaction.
The network hardforked to implement Ring Confidential Transactions (RCT), an adapted version of Confidential Transactions described by Gregory Maxwell, a Bitcoin Core developer and Blockstream’s CTO as a “a cryptographic tool to improve… privacy and security.” Monero develops on Maxwell’s implementation by adapting Confidential Transactions to work with the currency’s already implemented ring signatures, an inbuilt mechanism which bundles sending and receiving public keys with a number of older actual transactions, thus operating as a mixer to obfuscate addresses.
The nearly three years old currency already has a blockchain of around 10GB while barely having any transactions – around 2,600 a day, compared to bitcoin’s more than 250,000 a day. At bitcoin’s transaction levels Monero would add 1.5GB per day, consuming an average laptop disk space of 500GB in one year.
That might gradually change as bitcoin continues an apparent stalemate regarding scalability and general innovation, which has led to increased fees, unpredictable confirmation times and increased user annoyance, but whether miners will allow such stalemate to continue to the point where users begin leaving en mass for other public blockchains remains to be seen.
Confidential Transactions add to ring signature’s inbuilt mixer by “hiding amounts, origins and destinations of transactions with reasonable efficiency and verifiable, trustless coin generation,” according to the peer-reviewed Ring Confidential Transactions paper, making any blockchain analysis difficult if at all possible.
Although storage is relatively cheap with terabyte disk sizes now becoming more common, initial node synchronization may eventually become a problem, but the network is considering Lightning and TumbeBit, a more private version of Lightning, for more scalability, according to Othe, a pseudonymous Monero core developer. They have no plans to implement Segwit, Othe says, as the currency doesn’t have any transaction malleability problems and further consider sharding to be “a failed concept.”
Here's why one investor is way more comfortable with marijuana than bitcoin
Cryptocurrency ETFs proved too risky for ETF Managers Group Founder and CEO Sam Masucci, but he threw caution to the wind with his latest marijuana ETF â and it's paying off. "The business is
bitFlyer Launches in Europe and Becomes the World's First Bitcoin Exchange to Be Regulated in Japan, the US and … – Business Wire (press release)
Japan bitcoin bourse group stages Europe expansion Financial TimesWorldÂ´s biggest Bitcoin exchange wins backing for European launch Daily MailBloomberg all 4 news articlesÂ Â»
SEC 'Looking Closely' at Public Company Blockchain Pivots, Says Chairman
The head of the U.S. Securities and Exchange Commission said today that the securities market regulator is "looking closely" at the trend of public companies that have announced new focuses on blockch
Bitcoin Slides More Than 10 Percent to Near $10,000 Level
The price of bitcoin is down more than 10% today, according to CoinDesk's Bitcoin Price Index (BPI).
At press time, the cryptocurrency's price is trading around $10,237.25, a decline of roughly 11.
US Senators Blast Venezuela's Oil-Backed Cryptocurrency Plan
U.S. Senators Marco Rubio (R.-Fl) and Robert Menendez (D.-NJ) have denounced Venezuela's planned cryptocurrency in a new letter.
In an open letter addressed to U.S. Treasury Secretary Steven Mnuchi
Coinbase Taps Twitter Vet to Bolster Customer Support Team
Cryptocurrency startup Coinbase has hired a former Twitter executive in an effort to shore up its customer support teams.
Tina Bhatnagar will serve as vice president of operations and technology, a
IMF Calls for International Cooperation on Crypto
The International Monetary Fund (IMF), an organization that aims to foster global monetary cooperation and financial stability, has called for global coordination on cryptocurrencies, warning of the r
Commodity Merchant Louis Dreyfus Trials Blockchain for Soybean Trade
Louis Dreyfus, a major commodities trading company, has announced that it has piloted a blockchain-based transaction system developed by a group of financial institutions including ING.