Steemit Crypto Academy Season 2 - Week 8 Homework for professor @levycore|Privacy coins
Good day everyone, here is my submission for this week homework by professor @levycore
Cryptocurrencies such as Monero, ZCash, Dash and the likes are becoming more popular these days because they provide “privacy” for their users, this privacy is what the so called public blockchains like Bitcoin, Ethereum and others are not providing.
In this assignment, I will be explaining what exactly it means to have privacy on the blockchain, and the privacy coin that I will be taking is MONERO, I will be discussing the fundamental analysis of Monero, the advantages and the disadvantages of using the wallet and at the end we will conclude on which wallet is the best to use between Privacy coins wallets and public coin wallets.
A coin wallet is said to be private if its users can perform these two key benefits on their wallets;
- The users will be able to start and complete anonymous transactions on their coin wallet
- Users account balance will be private i.e. not everyone will have access to a user account balance.
Privacy coins provides the above benefits by making the sender’s address, the receiver’s address, and the transaction amount less visible when carrying out each transaction. They are able to accomplish this because they make use of a number of knotted cryptographic techniques into their protocols
1.
Choose a Privacy Coin and perform a fundamental analysis of the coin in detail.
As I said earlier in the introduction part of this post, the Privacy token I choose is MONERO. I will be performing a fundamental analysis on it.
Monero is a privacy-focused cryptocurrency that was created by Nicolas Van Saberhagen, he created this coin is a bedrock movement with no pre-mine and no venture capital financing. It was launched on the 18th day of April, Year 2014 as a branch of Bytecoin. The currency symbol is XMR
This coin (XMR) is based on CryptoNote application which is an open source protocol, Nicolas Van Saberhagen is also the original author of CryptoNote. He make use of this protocol in other to solve some specific problems that occurs in other cryptocurrencies such as Bitcoin, example of this problems includes; Transaction traceability, irregular emission, bulky scripts, hardcoded constants etc. In 2019, Monero started using the RandomX proof of work algorithm in other to strengthen “Application-specific integrated circuit” ASIC mining resistance.
Monero is ranked as the number 26 currency on coinmarketcap and The current price of XMR on coinmarketcap website is 282.86 USD. It's lowest and highest bids between the last 24 hours is $273.37 and $313.93
It's ATH price is $517.62 which took place last month, may 7, 2021. comparing this with the current price of $282.86, there is hope that XMR Will surely boom again to a new ATH price. It's ATL price is $0.213, this took place in January 14, 2015. This is indeed a coin that have a good chance of high return for investors
Monero is traded on different top exchanges such as Binance, Huobi, Kraken, Poloniex, Bitfinex, OKEx, KuCoin, Gate.io etc.
| FUNDAMENTAL ANALYSIS | MONERO |
|---|---|
| Currency Symbol | XMR |
| Current Price | $282.86 |
| Last 24 hours Trading Volume | $368,653,942.60 |
| Volume / Market Cap | 0.07233 |
| Coinmarketcap rank | #26 |
| Market Dominance | 0.31% |
| Market Cap | $5,097,150,651.32 |
This table is designed in accordance with the result I found on coinmarketcap wallet regarding Monero coin
2.
Describe the steps in creating a wallet for the Privacy Coin of your choice. (Screenshot required)
Below are the steps I took in the process of creating my monero wallet
I searched how to create monero wallet on chrome application and clicked on the result that have mymonero.com (that is the official website of monero). At the bottom of the website you will see an option that says “Quick access wallet online”
You will be directed to another page after pressing the “quick access wallet online” option, click on the “Create new wallet” option in the blue box
Here is a guideline, telling you some things you need to know and those information you need to save regarding your Monero Wallet. After reading and understanding this, there is a box to tick below, tick the box and press the “next” button
Copy and save this mnemonic, as this will be the only way to access your wallet if you are switching between mobile app or online wallet
After saving the mnemonic, they will ask you to tick the first 7 words in wish you must provide to activate your wallet
After proving my mnemonic, my monero wallet activation then succeeded!
You can see that my monero wallet have shown here.
Here is my “wallet address, secret spend key and secret mnemonic”: all these keys have their significant functions
Note: Don't forget that we are still on the “Quick access wallet online” mode. Below, I will be downloading “My Monero Wallet” App, there we shall see some key differences between creating wallet using the “Quick access wallet ” and using “Mobile App”
Here, I entered Google play store and searched for my monero wallet app. Then I downloaded the app
I'm done with the downloading here
One of the features that I saw on mobile app is; instead of displaying “my monero wallet”, I can set the name to be my personal username timileyin988 and a preferred display color
Here is another key features I couldn't find using the “Quick access wallet online” method. You can set up a password or pin for your wallet if you create your wallet via Mobile App
My wallet is set
3.
Explain the reason you chose the Privacy Coin. (State the advantages and disadvantages)
There are three reasons why I choose Monero;
- It is the number 1 best privacy coin when I search the internet
- The future of this coin is beautiful
- It is the original privacy coin due to CryptoNote mining algorithm.
- Anonymous transactions: transactional activities are secured on Monero, no one can see your wallet balance and your operations on the wallet
- Mining is simple: unlike Bitcoin mining tha requires special computer, monero mining can be done using ordinary computers
- Adaptive block size: Monero has adaptive block size which can increase whenever transaction reaches the maximum volume
- In case of theft or hacking, it won't be possible to know the account behind any illegal activity
- Illegal mining: since Monero is a privacy focused coin, illegal mining of this coin will be untraceable
- Monero is prone to government barning; if the Market size should increases to that of Bitcoin theRe may beat conflict as it is with Bitcoin.
- Monero is currently the number one in the privacy coin industry so, there no doubt that this coin will be facing competition by others upcoming coins.
4.
Conclusion
“To every advantages there are corresponding disadvantages”
Privacy currencies have good advantages that makes users agree to use them and in another perspective there are so many reasons why users should think twice before considering a privacy coin to use.
@levycore
@steemcurator01
@steemcurator02
@steemitblog
Unless otherwise stated, all the images are my original works.
Hi @timileyin988, Thank you for taking my class in the 8th week.
This is the detailed assessment that you get from the results of writing the homework that you have created:
Review dan Feedback:
Your fundamental analysis is good, but it could be improved by adding some supporting pictures from your explanation.
The conclusions you make are still too shallow. Not worth the good discussion you've made.
Re-learn the "Markdown Style Guide" to improve your writing skills.
Don't mention steemitblog, steemcurator01, and steemcurator02 in your homework post.
Thank you!