While Monero (XMR) offers both anonymity and privacy to transactions, the two are mutually exclusive. Anonymous cryptocurrencies offer the user with transactions that can be viewed publicly but the one who made the transaction remains hidden. On the other hand, on the private transaction networks the transactions cannot be viewed at all. You can’t see who made the transaction and you also can’t view the transaction. On Monero, the only viewable statistic is the whole lot of transactions made but not individual transactions. As any industry, this poses the ‘good or bad’ questions, will privacy networks be beneficial or detrimental to society?
What is privacy all about?
Monero is a secure, private and untraceable cryptocurrency that offers private and censorship-resistance transactions. Monero uses cryptographic ring signatures, stealth addresses and RingCT ensuring that all of its transactions remain 100% unlink able and untraceable. Monero currently ranks as the largest privacy network in terms of market capitalization and adoption. The cryptocurrency ranks 12th on the market capitalization rankings with a total market capitalization of $1,621,757,069 USD.
The private nature however gives rise to the possible use of Monero for illegal activity. A spoilt fruit spoils the lot. Governments and other regulatory bodies remain skeptical of the nature of privacy coins. However, Monero is already in use and even if the governments and associate bodies would wish to regulate it, it would not be possible. They can ban the public presence of XMR in their states but people will still be able to use it.
Governments have the reasons to ban the privacy coins, but the underlying technology can be used in other capacities such as voting, confidential messaging and sensitive information. The government can offer voters privacy and anonymity during voting processes while countering the private digital money.
Benefits of Monero
One of the biggest benefits to the private decentralized technology that Monero is built on, has to be the private ownership of one’s data. Big corporations will no longer be able to collect massive amounts of data from you without your consent as seen in Cambridge Analytica’s case. Not only will Monero privatize your transaction data but it protects the system from hacks. The current centralized nature of corporations increases the risk of hacks which will not be the case with private DLTs.
Finally, the governments will also be able to profit from the technology as officials will be able to keep the accounts secure and immutable. Hackers will not be able to penetrate the system as long as the private keys are kept safe. The system can also be used in voting in elections democratically and unchangeable.
Monero (XMR) gaining mass adoption across the globe seems uncertain at the moment with regulation of the coin is proving virtually impossible. The community members will however not care so long as they can continue transacting across the platform at their own will. Will the field of cryptocurrency feel the pinch in case private coins such as Monero are banned? I guess not.