Among the cryptocurrencies on the market, Monero (XMR) offers a characteristic that makes it different from the rest. This digital currency offers a transaction system that can not be traced, with complete anonymity of the user.
Since its early stages in 2014, Monero’s developers have paid a lot of attention to the anonymity of every possible transaction. In the crypto-world, the word “untraceable” is synonymous with “invulnerable” or “safe,” and this coin has become one of the main altcoins currently available on the market. While transactions using the most popular Bitcoin cryptocurrency can be monitored fairly easily, XMR offers an alternative appeal to investors.
However, very recently, some problems related to the anonymity factor have been reported. According to some experts, these problems can actively take into consideration the risk of compromising the seemingly “untraceable” nature of transactions, ultimately making it vulnerable to hacking and other malicious activities.
How XMR Exploits ASIC resistance
Monero’s vision is clear and coherent, but they have seen the centralization and lack of privacy in the blockchain increase in other important digital currencies. As a result of this centralization, they created a private currency that obscured user transaction data and resisted large-scale extraction activities. The classic mining set up is a series of graphics processing units or GPUs, but in this last period the ASIC units have almost completely replaced the traditional platforms.
Application-specific integrated circuits are hardware systems created for one purpose: mining. This creates an incredibly powerful miner compared to previous generations.
The developers understandably wants to avoid falling into this trap, and they have no problem changing their currency to guarantee it. Immediately after the discovery of Antminer x3, Monero has optimized their algorithm to make new hardware ineffective.
Short-term prospects of Monero
The decision to keep their ASIC resistance can lead to unhappy miners. However, Monero has clearly and quickly responded to the wishes of its community: privacy and decentralization (all that Bitcoin is currently losing).
ASIC’s resistance keeps Monero decentralized, while ensuring that small-scale miners can still make a profit. The advantages are many, as evidenced by the recent adoption of Monero mining as an advertising alternative.
The low processing cost of Monero’s mining operations allows direct extraction via web applications. The Media Salon website has recently launched a pilot program that allows visitors to participate in XMR mining instead of traditional advertising options. After the recent revelations, the development team of this cryptocurrency has performed several development updates to regain the absolute anonymity of Monero.
Monero is still one of the safest currencies in the market. Its anonymity function may not seem as impregnable as it seemed previously, but it is not yet possible to identify the user who transacts even if the actual currency is traced.
In addition, Monero is one of the most stable currencies able to maintain prices during the recent losses that the market has suffered. Therefore, keeping this currency under control can make many traders happy by the end of this year. Instead, medium-long term investors can be sure that Monero’s development team is monitoring the situation and ensuring that their cryptocurrency remains true to their original vision.