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An Analysis of Privacy Preserving Blockchain Monero

Monero is a private digital coin that uses privacy-enhancing blockchain technologies to provide anonymity and confidentiality for its users.

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Blockchain is a public ledger with its transactions available for verification by anyone in the network. Their ledgers are transparent and open for public view. Blockchains are supposed to provide anonymity so that the user addresses cannot be linked to real-world identities. 

Among all the public blockchains, Monero is a private digital currency working on a privacy-preserving blockchain. It was created in 2014 and originally known as BitMonero, as a derivative of a proof-of-concept currency, CryptoNote. It uses privacy-enhancing technologies to provide anonymity for its users. Furthermore, it creates confidential and untraceable transactions. Anonymity is provided by default to all its users. It hides sender and receiver addresses and the amount involved in a transaction.

A new feature called atomic swap is coming on Monero soon which would provide trade between Bitcoin and Monero without the need to trust any party. With a steady increase in its trading volume, Monero (XMR) is currently trading at $394. In April, a Monero based DEX, called Haveno, was launched for trading XMR for fiat and cryptocurrencies.

We will analyze how Monero is different from other digital cryptocurrencies in the following sections.

How Monero Blockchain Can Help Privacy Issues in Blockchain

Third parties like a central authority have been let go to achieve decentralization in governing a digital currency. Now to verify any exchange between parties, its complete transaction history must be publicly visible. Most blockchains store transactions in clear text to facilitate verification by community users. Here an open ledger defies the privacy of its users by publicizing their complete history. To address this lack of privacy, Bitcoin users can obfuscate their identity by the use of temporary intermediate addresses for each transaction. However, it is still possible to analyze money flows and link these addresses. Many other analyses are still possible like finding network topology, studying transaction patterns, linking senders with receivers. The transparency makes such currencies pseudo-anonymous.

Also, financial confidentiality is not available in most blockchains. The transaction amount for each exchange is publicly visible. High volume transactions can attract attackers in attempts to steal their currency. There is insufficient financial privacy for any commercial and personal transactions.

How Does Monero Blockchain Help?

Monero is a cryptocurrency built with the sole purpose to provide censorship resistance and user privacy otherwise insufficient in other digital currencies. It uses powerful cryptographic techniques. It allows parties to interact without revealing the sender, receiver, or transaction amount. Even without actually knowing the transaction amount or account balances, the participants in the network can assess the validity of the transaction.  One can think of Monero as an opaque blockchain providing all the benefits of a decentralized and trustless cryptocurrency without risking the privacy of its users.

It provides a solution to address the privacy issue by storing only stealth, single-use addresses in the blockchain, it also uses ring signatures for authenticating transactions, thus confiscating user identity. This reduces the chance of an observer to find the origin of funds among the users and find any link between the parties of a transaction. Monero also uses confidential transactions in which transaction amounts are concealed behind cryptographic constructions without revealing the value itself.

Features of Monero

To provide a great deal of opacity to the users Monero makes use of the following cryptographic features:

  • Monero is supported by over 100K miners, working on a PoW based consensus algorithm called RandomX. It is an ASIC-resistant algorithm to prevent specialized mining hardware from centralizing the network. It is optimized and works efficiently for a general-purpose CPU.
  • Ring Confidential Transactions: They conceal the amount in a Monero transaction. RingCT keeps this sensitive information private by allowing the sender to still prove that they have enough balance for a transaction. It is done by the use of cryptographic commitments and range proofs. It reveals just enough information for the network to confirm the legitimacy of the transaction, while not publicly disclosing the amount itself. The transaction amount is hidden by a cryptographic commitment. A valid commitment guarantees that the transaction is not fraudulently creating or overspending Monero. Range proofs, also used in RingCT, is a method to ensure that the committed amount is greater than zero, and less than a certain number. This is necessary to prevent senders from committing negative or high amounts of Monero.
  • Stealth Addresses: These ensure that the recipient’s address is not recorded on the blockchain. To achieve this, each Monero transaction is instead sent to a unique disposable one-time address. The recipient can access funds sent to a stealth address, without exposing any links to their wallet’s public addresses. To create a stealth address, the sender will use the public keys of the receiver along with some random data to generate a unique one-time public key. An observer can’t connect these random stealth addresses back to the originating wallets. This prevents multiple payments to the same address of a user from being linked together.
  • Ring Signature: This protects the sender by obfuscating the source of Monero being spent. Ring signatures are used in Monero to blend the keys from multiple outputs on the blockchain, to obfuscate which output is actually being spent. This allows one member from the ring to digitally sign the message on behalf of the group while mixing in the public keys of the other members so that it is unclear who actively signed the message. It is possible to cryptographically verify that one of the ring members signed the message, but impossible to determine which of the members actually crafted the signature. A significant consequence of ring signatures is that an outside observer is unable to definitively prove that an output has been spent.
  • Kovri: It breaks the link between transactions and the physical location of a sender by obfuscating the broadcast origin and concealing network signs of Monero activity. Since broadcasting to the Monero network reveals an IP address, a node receiving a transaction may be able to identify the physical location of the sender. Kovri is based on the decentralized Invisible Internet Project (I2P) specifications. It is designed to use encryption and sophisticated routing techniques to create a private network for Monero distributed across the internet.
  • Atomic Swaps: This feature is getting developed under a community-funded project called Farcaster. The COMIT team is also developing a software implementation for Monero-to-Bitcoin atomic swaps. It makes use of Adapter signature also called one-time Verifiably Encrypted Signatures (VES) and zero-knowledge proofs. As some countries have suppressed the use of private currencies like Monero, using atomic swaps will make Monero as available as Bitcoin. Atomic swaps will hide the movement of Bitcoin and provide privacy by routing value through the opaque Monero blockchain.

Uses and Market of Monero

Monero works on several exchanges and is accepted by many merchants. A lot of Monero has been recently on the move. The project has recently celebrated its 7th anniversary and is currently on a high ride. It attracts special users which prefer privacy and confidentiality for their transactions. But owing to its upcoming features of atomic swaps and bulletproofs, Monero is expected to be the mainline cryptocurrency.

READ  Attackers Hijack Azure Machine Learning Software Of Microsoft To Mine Monero

#Bulletproofs #Monero (XMR) #Privacy Preserving Blockchain #Ring Confidential Transaction #Ring signatures #User Anonymity

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Source: https://www.cryptoknowmics.com/news/an-analysis-of-privacy-preserving-blockchain-monero

Blockchain

Coinbase Should’ve Gone Public Via Crypto Tokens – Olaf Carlson-Wee

Olaf Carlson-Wee has recently stated that the shares of Coinbase would be worth more today if the company had chosen to go public via crypto tokens.

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The first hire at the Coinbase cryptocurrency exchange, Olaf Carlson-Wee has recently stated that the shares of the exchange would be worth more today if the company had chosen to go public via crypto tokens. As witnessed already, the Coinbase stock has been declining since the day it was listed on NASDAQ on April 14.

Coinbase Shares Declining, Crypto Tokens Should be Preferred, Suggests Olaf Carlson-Wee

Olaf Carlson-Wee suggested that the cryptocurrency exchange company would be worth a lot more if instead of going public through the stock exchange, it had chosen a crypto-native way.

He said addressing the possible expectations from the Coinbase exchange:

“I think that if Coinbase would have gone public on Coinbase, [it] would be valued at over double what it is.” 

But, we all are aware of the fact that the crypto exchange chose to go public with a direct listing on NASDAQ on April 14.

The now Founder and CEO of Polychain Capital, a crypto venture capital firm, Carlson-Wee, intricate recently in the Ethereal Virtual Summit of this year regarding the listing and decline in the share price of the exchange.

Direct Listing vs IPOs, Exchange’s Way of Going Public Wasn’t Mainstream

If the cryptocurrency exchange had chosen to go public through crypto tokens, the shares of the company would be represented as ERC-20 tokens, which would be allowed for trading in the wild yet wonderful world of Defi.

However, that didn’t happen and the crypto exchange chose the option of direct listing on NASDAQ instead of an IPO. 

Well, the major difference between an IPO and a direct listing is that the direct listings are less unwieldy than IPs and they require comparatively less paperwork. In addition to this, they are also cheaper.

Coinbase, instead of an IPO, offered up 115 million already-existing shares. 

At the launch of the exchange, it was rumored to be worth around $100 billion and its shares were available to trade for $375 each.

READ  CoinDCX Partners With Blockchain Council To Offer Crypto-Related Educational Programs

#Coinbase #Crypto Tokens #Olaf Carlson-Wee

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Source: https://www.cryptoknowmics.com/news/coinbase-shouldve-gone-public-via-crypto-tokens-olaf-carlson-wee

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TheNewsCrypto – Blockchain & Cryptocurreny News Media | Crypto Guide

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Source: https://thenewscrypto.com/

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Alpha Finance Lab Launches New Oracle Aggregator

The Decentralized Finance (DeFi) lab Alpha Finance Lab has announced the launch of the Alpha Oracle Aggregator.

The post Alpha Finance Lab Launches New Oracle Aggregator appeared first on BeInCrypto.

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The decentralized finance (DeFi) focused Alpha Finance Lab has announced the launch of the Alpha Oracle Aggregator.

This new product was developed using data from two of the largest data oracles providers. Namely, Band Protocol and Chainlink. Its primary purpose is to confront obstacles that are preventing the expansion of the DeFi landscape. As such, it developed the Alpha Oracle Aggregator in a bid to ensure scalability, flexibility, and security.

Tascha Punyaneramitdee, co-founder of Alpha Finance Lab, commented:

“The speed at which the DeFi landscape is growing has impacted how Alpha Finance thinks about building and scaling our products. The Alpha Oracle Aggregator ensures the reliability and security of data sourced while increasing flexibility and scalability for the Alpha ecosystem.”

What issues will the Aggregator address?

More specifically, the new aggregator will allow Alpha Finance Lab to access verified data, aggregated from up to three data oracles for a single asset in one location. In addition, the product allows users to access data from different oracles for different assets.

Before, decentralized applications (dApps) needed to integrate with multiple oracles across multiple blockchains. A requirement that led the dApps to build and maintain several infrastructures at once. Alpha Finance’s new aggregator hopes to negate this requirement.

Soravis Srinawakoon, CEO and co-founder of Band Protocol, elaborated:

“The way we aggregate and supply data must adapt to facilitate growth and add a strategic edge with security to the decentralized projects that use it.”

Other issues include the lack of backup for dApps operating on a single chain, using a single data oracle. This leads to problems in the event of manipulation or unavailability. Furthermore, as the crypto space grows, it brings a variety of new tokens with it. This expansion causes difficulties for data oracles trying to cater to dApps’ requests to support more tokens.   

Big year for Alpha Finance Lab

The aggregator is not the first big launch Alpha Finance Lab has made this year. Back in March, its leveraging protocol, Alpha Homora, announced the launch of staking opportunities and a new tokenomics model. In the reveal made on March 28, Alpha Finance said holders of the native ALPHA token could benefit from its product expansion. Specifically, ALPHA holders could stake tokens for fee-earning opportunities, and also unlock unique features.

At the time, reports indicated that this was one of the first times tokenomics were directly integrated with core underlying protocol usage.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Dale Hurst is a journalist, presenter, and novelist. Before joining the Be In Crypto team, he was an editor and senior journalist at a news, lifestyle and human-interest magazine in the UK.

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Source: https://beincrypto.com/alpha-finance-lab-launches-new-oracle-aggregator/

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Chainlink (LINK) and Uniswap (UNI) Technical Analysis: Bullish Outlook

Chainlink and Uniswap technical analysis predict solid prices. LINK/USDT and UNI/USDT both look firm for $60 in the medium-term.

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Chainlink and Uniswap technical analysis predict solid prices. LINK/USDT and UNI/USDT both look firm for $60 in the medium-term.

Chainlink (LINK)

The dApp is a cog that supplies external, tamper-proof data to over 300 DeFi protocols. Chainlink is centered around LINK that’s used for paying services rendered.

Past Performance of LINK

The token is the most valuable DeFi project, according to trackers.

Presently, it is up roughly seven percent against BTC and USD, adding three percent versus a solid ETH. It is changing hands at around $51.

At the same time, trading volumes are up 62 percent to $3.3 billion on the last trading day.

READ  Seoul Police Raid South Korea’s Largest Crypto Exchange Bithumb

Day-Ahead and What to Expect

Technically, Chainlink is roaring higher. Its capitalization would continue rising in tandem with DeFi expansion.

At $50, the token trading within a bullish breakout pattern, adding to gains of Q1 2021 and reversing losses of late April 2021.

Overly, momentum is building up as LINK/USDT prices align along the upper BB.

This suggests buyers and the odds of further gains above $60 could be on the offing.

LINK/USDT Technical Analysis

Chainlink Daily Price Chart for May 10

Chainlink prices are on an uptrend. As of writing, LINK/USDT is within a bullish breakout pattern.

Banding along the upper BB, every low is possibly a loading opportunity. Immediate and medium-term targets stand at $54 and $82, respectively.

Hence, correction below $45 may see LINK/USDT prices correct to $35.

Uniswap (UNI)

Uniswap is the world’s leading DEX on Ethereum. UNI is the protocol’s native currency.

READ  TCS Announces Launch of Quartz Smart Solution for Crypto Services

Past Performance of UNI

The UNI/USDT price ranges between $40 and $45, trading within a bullish breakout pattern.

From UNI technical analysis, the path of the least resistance is northwards despite a nine percent contraction over the last week of trading.

Presently, the breakout trade is valid as long as UNI prices remain above $40.

Day-Ahead and What to Expect

Uniswap technical analysis and fundamentals support UNI bulls. In all, the middle BB and $40 are crucial reaction points in the immediate term.

For trend continuation, how UNI/USDT reacts at $45 could determine the short-term trend.

UNI/USDT Technical Analysis

Uniswap Daily Price Chart for May 10

Aforementioned, UNI/USDT is trading within a bullish breakout pattern above $40.

In a retest last week, the short-term trend for UNI remains upwards. However, the rally to $58 could be accelerated if there is a conclusive, high volume breakout above $45—May 2021 highs.

READ  Bakkt Partners With Galaxy Digital to Launch White Glove Service

Hence, losses below $40 may see UNI/USDT dump down to $30.

#Chainlink #DeFi #LINK #LINK USDT #UNI #UNI/USDT #Uniswap

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Source: https://www.cryptoknowmics.com/news/chainlink-link-and-uniswap-uni-technical-analysis-bullish-outlook

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