Why Monero $XMR is Still the Undisputed King of Privacy Coins

[Music] we see what are you doing snooping about like that with my things your book is here oh I wasn't moving Monero keeping your private information safe from snooping eyes since 2014 for more information go to anti snooping eyes that io privacy is a fundamental human right one arrow is the gold standard of privacy coins you could say that Manero is a multi-layer shield from all the snooping eyes of the world although some coins may be superior to Manero in other aspects when it comes to privacy more narrow is second to none in this video I'm gonna talk mostly about the privacy features because that's what Manero really is all about it is what they are prioritizing we'll also talk a little bit about Mineiro scalability as well as there are other projects Monaro has different layers of privacy let's take them one at a time first is ring signatures it is used to hide the sender when sending money Manero makes it appear as if several outputs were used to send that to someone but in reality only one of these is actually spent this is the ring signature you select several other decoy outputs that you do not control selecting these decoy transactions will make it seem as if you are also spending this now that your transactions are mixed up with other transactions from strangers on the network outside observers and receivers have no idea what exactly is going on here let alone who sent the money to whom the sender is hidden on the receiving end it is hidden by what we call stealth addresses stealth addresses hide the recipient by requiring the sender to create around the one-time address for every transaction on behalf of the recipient the recipient can publish just one address but have all his incoming payments go to unique different addresses on the blockchain where they cannot be linked back to anyone by using stealth addresses only the sender and receiver can determine where a payment was sent so now that we've hidden the sender and receiver you might think we're all good not even close on top of everything one arrow also hides the amount in the transactions and it does this by what we call ring confidential transactions ring city works by manipulating mathematical operations to allow only the participants of the transaction to see the amount of Manero that is being transferred no outsiders can see now if you're smart you might be thinking if the amounts in Mon arrows transaction are hidden how would we know no one is minting new coins out of nothing how do we maintain the integrity of a system that hides itself well in that case we just need to make sure that the sum of the inputs are equal to the sum of outputs that way an outside observer can cryptographically verify that no new coins were minted another important aspect of a ring city transaction is the range proof which prevents the sender from committing a negative value and thereby secure the supply for a narrow range proof cryptographically proves the amounts used in a transaction are greater than zero and less than some arbitrary number while an outside observer is unable to see the actual amounts they are able to confirm that the transaction is a legitimate one that the network should accept so these three technologies are the main privacy features of Manero for now when combined it is the ultimate anonymity you can get while purchasing online untraceable even if someone knew about specific anonymous funds that you control they cannot tell if or when you spend those funds they cannot tell whom you sent those funds to because from an outsider's perspective people will be using your funds in their own transactions all the time and you will appear to be using their transactions too this is what makes Manero so good at privacy unlike Z Cash it is private by default that is to say there is no option to be non private while sending or receiving transactions in Manero whether you like it or not you will take part in making the privacy stronger and there's a good reason for this I already explained this in my min Bullwinkle video using Assassin's Creed analogy if you want to check out another awesome privacy protocol links in description basically the idea is if you want to be anonymous you have to blend in the crowd no matter how strong the privacy features if the crowd is too small you'll likely get caught and for that reason monarus privacy is mandatory now you might be thinking since you are so damn smart doing all this in one arrow must require a lot of computing power as well as bandwidth to move data around the blockchain and you're right – I'm just gonna put this out there scalability is not Manero strong suit in fact without actively measuring every aspect of their implementation I dare say it probably is their weakest on average or narrow blocks or mind every two minutes as opposed to 10 minutes in Bitcoin also they don't have any hard-coded block size limit instead when arrow was designed from the beginning to have an automatically adaptive block size limit this is made possible by a taking advantage of a mechanism to control the rate at which the block size can grow based on the average of the last 100 blocks as a result it will automatically adjust itself depending on the volume of active transactions on the network with this they will be able to handle future increases in transaction volume but unless other scaling solutions are in place the network will likely be slow and laggy and transaction fees will spike we've seen this happen with Bitcoin last December 2017 at the height of the bull run and we will likely see this in more narrow unless they do something about it recently they implemented bullet proofs remember when they talked about range proofs earlier well that whole process is very hefty to verify and bullet proof purpose is to mitigate this by handling transaction data in a logarithmic manner as opposed to linear bullet proof and able transactions are drastically smaller in computational size than their non bulletproof enabled counterparts of course this isn't really enough to scale to like 10 million users but this is a good start some of the community is also looking into second layer solutions similar to Bitcoin sliding Network they call it tari and it is merged mind with Manero as a side chain although thorry plans to scale using technologies like payment channels and transaction cut-through it's not really a scaling solution for Manero and it is relatively early safe to say Manero is not prioritizing scalability today another very important property that one arrow excels at is fungibility which is the ability of an asset to be interchanged with the same type of asset equally without censorship or exclusion guys key word here is equally one Manero has to be equal to any other Manero in the world meaning no bad money let's explore this a bit further imagine a scenario where you are a glass merchant who accepts Bitcoin as payment you've been doing this for a while with no problem until one day a customer paid you with Bitcoin that was previously used in a terrorist or any other criminal activity now you are worried that you have become a suspect in a criminal case because the movement of funds to you is a matter of public record if you're in Bitcoin you are also worried that certain bitcoins that you thought you owned will be considered tainted and that others will refuse to accept them as payment but none of this was your fault to begin with you were just a glass merchant making an honest living see that is why fungibility is an important property of money and I dare say although not 100% sure that Manero is also the champion of fungibility Manero might be the most anonymous cryptocurrency you can send and receive payments with but that doesn't mean you are completely safe from snooping eyes some information might still be leaked in the network level while making a transaction no one might be able to tell what you're exactly doing but powerful entities like governments will still know that you use Manero this affects countries that already restricted or might want they restrict the use of Manero that's where Cauvery comes in Kadri is a decentralized anonymity technology based on the invisible internet project AKA i 2p essentially it hides an applications internet traffic to make it anonymous within the network they believe this will have superior anonymity than tor however Cauvery is still in the alpha phase that is to say it's not yet integrated with Manero but they are currently developing a client and core API for Manero bottom line what narrow is the best privacy coin there is at least for today they have some scalability problems but they believe that they can take care of that and in some ways that may seem like wishful thinking but from what I can see it's very important for Manero to remain the undisputed king of privacy and such prioritizing the anonymity of their users should be the way to go at least until such time that invasion of privacy is no longer an issue or they've totally fixed it which I don't think is happening anytime soon I'll be exploring more about one arrow in the coming weeks or months so stay tuned damn it feels good to be in crypto unfortunately that's all the time I have for you today my channel is growing a lot recently and I'm very thankful for it my goal is to reach 500 subscribers by the end of March so if you have it already be sure to subscribe and hit that like button if you enjoy the video thank you for all the good comments and all the support I'm grateful to all of you and I'm gonna continue doing my thing laying the foundation for this crypto channel step by step be sure to be around for the next video if that spell notification if you think I'm worth it and I'll see you on the flipside [Music]

You May Also Like