Crypto Academy Season 2 Week 8 Homework Post for (@levycore) - Privacy Coin

This week lecture was about the privacy coin. I got to know much more from this lecture. Now after reading the lecture thoroughly and doing some basic research, I am going to write the homework for professor @levycore

What is the Privacy Coin

As we know that the blockchain is a decentralized platform where all the transactions are open. The whole detail about any transactions is keep open and all the traders on network are able to see that. The history is keep in middle and there in no information about any transaction which remain hidden. Everything from sender address to the amount which is sent to any receiver is transparent. This sometime can cause of argument between the groups on network. To overcome this situation the privacy coins were introduced in crypto market.

The basic purpose of this coin is keep the transaction information secure and hide. Not all the people on network are able to see the information of transaction occur on network. The transactions on the privacy coins are not traceable like other crypto currencies. These crypto coins work on the same blockchain as the other crypto currencies but these keep the transaction information and transaction history hide for all on network. Only the sender and receiver are able to see the history of transaction. Many Privacy coins are there running successfully on blockchain network such as Monero, dash, Zcash etc.

Advantages

The transaction information is remain hide and secure

1) The transactions are not traceable

2) Work on the decentralized network

3) Only sender and receiver have the right to see the history of transaction

Disadvantages

1) As transactions are not traceable, so sometime this coin may be used by hacker to perform the illegal operations on network

2) As this may cause the illegal operations, so some countries do not allow the use of these coins.

1. Choose a Privacy Coin and perform a fundamental analysis of the coin in detail.

Monero is a privacy coin which was introduced in 2014. Monero(XMR) is one of the top thirty crypto currencies on blockchain network throughout world related to the market capitalization. This coin keep the transaction information secure and do not keep it transparent for all on network. A signature known as ring signature is being used for keeping the transactions secure and hide. This signature if formed by the combination of some specific keys which keep the sender information confidential.

When we think about the crypto currencies, the first currency which click in my mind is bitcoin. Bitcoin is the world largest crypto currency which have the power to influence the other crypto currencies's market trend. But even this largest currency keep the transaction information open to all the people on network. Everyone is able to see which sender send how much amount to which person or group. The monero is like other crypto currencies is anlyzed to predict its future.

But this not happen in case of monero. Monero keep the transaction information secure. User feel there assets more secure and protected. This protection zone is created by hiding the wallet. The transactions are untraceable. No one is able to see the transaction information. Only sender and receiver have access to see the information about any transaction.

It may seems secure and attractive of being secured and untraceable transaction process, but sometime these feature may become the reason illegal transactions on network.
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Which exchanges platforms support Monero

The monero is secure and untraceable. It is not listed on multiple exchanges. Many weel knwon exchanges such as coinbase do not allow the Monero to run on it. But you can buy or sell the monero on Binance, Gate, Poloniex, Huobi, exchanges.

Monero market Value

The rank of Monero is 26

Market capitalization of Monero is $5,141,700,080

Volume in last 24 hour is $292,701,445

Monero highest price in history in recent year which is $ 517.62

Monero highest price in history in 2015 which is $ 0.213

Difference between Bitcoin and Monero

Bitcoin	Monero
The transactions are Transparent	Only sender and receiver can see the information of transaction
Run almost on all famous and well known exchanges	Support only by few exchanges
Transactions are traceable	Transactions are not traceable

Is it possible to mine monero coin

Monero is a crypto currency which like other currencies verify the transaction, make history of transaction. But the difference is that the history and transaction information is not open for all the people on network. The security, generation of new monero coins and verification process is done in monero crypto currency by use of Proof of stake consensus algorithm. The multiple tools are available which allow monero minning but some protocols are being used to protect the network from unauthorized access. Maybe then i will be listed in top 5 crypto currencies and will be legal in other countries which currently have banned the use of monero.

Describe the steps in creating a wallet for the Privacy Coin of your choice. (Screenshot required)

The wallet of privacy coin is set up by following some steps. The steps are as follow:

Go to the https://www.getmonero.org/downloads/

Click on Download

Click on the option i marked in screen short for downloading the setup in your laptp

Once the installation get competed, open it and Click on the next

Tick the I agree statement and CLick on the next.

tick the box of creare a dexktop icon and click on next

Click on next

It will start installig in your PC

Click on finish.

Once the installation get completed, open it and click on safe mode

Tick the privacy term and click on next

Click on Create new wallet

A series of mneminics will appear. Save it at the secure plavce. CLick on next

The wallet has been created. Now when you will open your wallet, you will have to enter teh password.

This is your wallet.

3. Explain the reason you chose the Privacy Coin. (State the advantages and disadvantages)

Although the monero coin have many advantages, but there are some darks sides of this currency too. Let's now talk about the advantages and disadvantages of monero crypto currency

Advantages of Monero

• The transactions Cannot be traced

• The basic goal of this crypto currency is to reach at the highest level of decentralization

• As the mining of monero is a bit hard, this save it from the volatlity of value.

• Many currencies are there which ask you to charge more if you want your transaction occur fastly. But this is not happen in Monero. Average transaction time is two minute and it will perform in two minute. No need to pay extra for large scale transaction

• This is more valuable coin but for those users who prefer the financial privacy.

• Fungible

• The consensus algorithm is being used here for protection, verification and generation of new moneros which make this coin more reliable

• More secure

• One of top 30 crypto currencies

Disadvantages

• Use for illegal transaction.

• Cannot be trace, so it is possible to hack

• Not run on many well knwon exchange platforms

• A small number of wallets are there who support monero

• Due to privacy oriented, it is now allowed to be used in many countries.

• Not use widely and frequently

• There are mainly three pools having the more than 40% of hashrates. This ratio make the Monero centralized to some extent.

• As the transactions cannot be traced and history is not visible for all so the new users find the monero a bit complex in starting.

Conclusion

The current banking system are work as the transactions are not visible for everyone. The sender and receiver have access to see the transaction history. The transactions cannot be traced so some illegal actions may perfomed by unauthorized people. To oversome these issues, the crypto currencies were introduce where all the transactions are visible for all the people on network. All the transactions are traceable so no point to hack. The history is keep in middle so no argument is often place there.

But privacy coin again offer the user the high privacy and security of there assets but the week point is the transactions are un traceable. The Illegal transactions therefore perform by unauthorized people. Many countries do not allow the use of this coin as it somehow against the mission of crypto currencies.

It can be analyzed by many analyses tools and the future can be predicted by the investors before investment like any other crypto currency, but it violate the goal what the crypto currencies basically introduced for.

So i support the current system of crypto currencies transaction. Where all the transactions are transaprent. All the people on network are able to see the history of transactions. But maybe in future, these coins come up with new strategy regarding to the transparency.

Cc:

@steemitblog
@levycore