Earlier, the editor has introduced what Monroe Coin is. Monroe Coin XMR is an open source digital currency created in April 2014. It focuses on privacy, decentralization and scalability. However, there are still some novice investors who are confused about Monroe coins. Then, let's follow Xiao Bian to see what are the characteristics of the watchdog coin and whether it is worth investing.
What are the characteristics of Monroe coins?
Bitcoin is the first cryptocurrency and the first decentralized point-to-point transaction. As long as the address of Bitcoin is known, its historical transaction records (money, quantity, time) and current accounts can be found out. On the blockchain, there is an open and transparent historical record that can be traced back to the address from the historical transaction record, which can be viewed by everyone.
If a Bitcoin was used for illegal transactions before, it can be regarded as stolen money, involving legal issues. The judicial department starts to track down the Bitcoin address one by one. Whether it is an accomplice or an investor who simply wants to do over-the-counter transactions, the acquisition of the Bitcoin will be involved, and the person who owns the Bitcoin will lose.
This example shows the particularity of Monroe Coin and other cryptocurrencies. No matter what transactions the previous holder made with Monroe Coin, the transaction data is private, and no one can understand the historical transaction records of each transaction.
Therefore, Monroe Coin has three characteristics, namely, irrelevability, untraceability and privacy trading service provided by confidential trading quota. Let's take a look.
Irrelevance
When a customer transfers property to another user, because the transaction cannot be associated, no one can judge who the receiver and sender are and which account address is based on all the information in the blockchain. The irrelativity function is achieved through a secret address. A secret address is a one-time address set up by the receiver and sender for each transaction. When the transaction is completed, the address can no longer be used. That is, when two senders transmit property to the same receiver, there will be two transactions without any relationship, but they are the same receiver. The Monroe Coin transaction means that only the sender and the receiver defendant know what address is involved in the transaction.
Untraceability
Because the sender can still query the subsequent transactions of the receiver by monitoring the activities of a specific secret address, the irrelative function alone is not enough to protect privacy. Transactions between multiple parties must also be untraceable to achieve maximum concealment. In order to achieve this, Monroe coins use ring CT (Ring Confidential Transactions) to perform transaction mixing. In transaction mixing, when pushing assets, the sender randomly selects assets from several other wallets as a possible source of funds and appears in the transaction records to achieve the effect of transaction mixing. No one can determine the source of what assets are actually used for trading, and no one can judge whether the received assets have been used. This situation also makes it possible that the inactive Monroe coin wallet with funds in it will continue to trade with many Monroe coin wallets.
Confidential transaction limit
Monroe coins can also hide the number of loan coins sent in each transaction, which is also achieved through the expansion of the ring trading system.
Take the example of Lao Li's transaction with Hua Hua to illustrate these three characteristics:
Lao Li wants to transfer 100 Monroe coins to Hua Hua, and the number of confused transactions is set to 5. Then five Monroe coin transfer records will be generated on the blockchain at one click. Except for the one that Lao Li transferred to Hua Hua, the other four transactions are all for confusing external observation.
When Lao Li transfers money to a flower, the sender Lao Li adds some random numbers to the public key of the recipient flower to generate a unique, one-time address, and transmits 100 Monroe coins on the temporary address. Anyone can see this temporary address, but they don't know who the money in the address belongs to.
At this time, Huahua's wallet will use the private key to carry out the search function to check whether the temporary address on the blockchain belongs to its own currency. This coin can be used when the private key of the flower identifies the temporary address it is entitled to receive. Only the private key of the recipient flower can receive this coin. After receiving it, the flower knows that Lao Li has already transferred money.
Lao Li will not directly disclose to the blockchain that he and Hua have traded 100 Monroe coins. Instead, Lao Li provides a multi digit Ring CT as the export of the trading quota. Ring CT is a random number plus a real trading quota. The random number is used to cover the real amount. The random number is automatically generated by the wallet. The Ring CT value provided by Lao Li on the blockchain verifies whether the transaction input quota is equal to the transaction output quota to determine the transaction. With this technology, Lao Li can prove that he has transferred 100 Monroe coins to the flower.
Is Monroe Coin Worth Investing?
The value of Monroe Coins depends on the future development. Monroe Coins are designed to deal with the needs of privacy, and the use of CPU mining for Monroe Coins has prompted a large number of miners to participate in it. Therefore, Monroe Coins also have a large number of supporters. Monroe Coins have unique implementation technology, which is always amazing. In April 2018, in order to maintain the mining fairness of Monroe coins, prevent the infringement of ASIC miners from causing unreasonable mining, the developers successfully fought against ASIC mining machines. In September of the same year, hackers found a loophole in the Monroe coin wallet and destroyed 1000 Monroe coins. The development team of Monroe Coin comes from the online community and has such strength to maintain the original intention of Monroe Coin creation.
It seems that the perfect Monroe also has inherent defects. Many users use Monroe coins to do illegal things. Although many countries are hesitant about cryptocurrencies, they cannot ensure that countries will not boycott them. Although the national boycott will not let cryptocurrencies fade away directly, this situation makes it extremely difficult for Monroe coins to obtain legal recognition, The application of Monroe coins is limited to a limited number of people, and the scope of application will also be limited. Cryptocurrency, which is difficult to be recognized by everyone, has problems in circulation. Monroe coins, even if they have a high degree of concealment, have no value even if they cannot be circulated.
Speaking of this, I believe you have a certain understanding of the characteristics of Monroe Coins and whether they are worth investing. In general, Xiao Bian also reminds investors that no matter whether they invest in Monroe coins or other digital currencies, they should have a comprehensive understanding before entering the arena. After all, investment is accompanied by certain risks, so don't invest blindly.
