Monero XMR, known as the ultimate privacy coin, currently ranked among the top ten cryptocurrencies as the 9th largest digital asset by its market cap, is heading towards extending its privacy features with the announced bulletproofs protocol.
Back in 2014 when Monero was launched as an initial coin offering, XMR was represented as the first digital asset actually focused on privacy while Bitcoin had transparent addresses which enables practically anyone who knows your public address to monitor and track your transaction activities.
Although Monero turned out to be vulnerable to 51% more than once, the coin was also proclaimed as the fastest growing coin alongside with Bitcoin in a report that followed a ten-year long run in the market as calculated by Satis Group, blockchain advisory and research company.
Moreover, back in mid-July Monero XMR announced switching to bulletproofs protocol that should moreover make the network more scalable, faster and more privacy oriented, which could potentially bring Monero further up the top 10 list. Additionally, the bulletproofs protocol was confirmed once again in August, while the first three audits for the protocol are already marked as completed.
Monero to Get Lower Fees, Faster Verification and Extended Privacy with Bulletproofs Protocol
Back in mid-July, the team behind Monero XMR announced that they will be implementing the bulletproofs protocol, which actually represents a cryptographic scheme.
This implementation should indicate transaction data reduction by 80%, also creating a more proficient network out of Monero blockchain.
At the current moment, Monero is using RingCT in order to be able to represent an asset with handy features that allow for the utmost privacy. Thanks to RingCT, users can easily make transactions with XMR or keep their XMR units safely stored in their digital wallets while sharing public addresses that don’t reveal sensitive transaction data to anyone knowing your public address.
With bulletproofs protocol, the work that the network is relying on RingCT for support would be done in a more efficient and cost-effective way, also diminishing the problems that RingCT was causing to Monero network.
That means Monero is taking an initiative towards solving one of the most common problems in the blockchain industry: creating a highly scalable network.
Scalability, of course, comes with faster payments and faster overall performance, also allowing cheaper transactions, which is one trait that is always attractive to investors, holders, and users.
Small transactions are often expensive at cryptos like Bitcoin, so it doesn’t actually pay off to make microtransactions that often as fees may go up to 40$ per one micropayment, however, bulletproofs protocol should allow cheaper microtransactions with XMR, which might consequently draw in more investo9rs.
Moreover, Monero network will become more scalable, so the protocol should allow the system to accept new updates in an easier manner.
All three completed audits for bulletproofs protocol was conducted by third parties, with the first audit being completed by Kudelski Security on July 15th.
The team is still working on preparing the network for implementation, after which if everything goes smoothly, the system should have the new changes applied and ready to be used.
How Close is the Bulletproofs Protocol Implementation?
In one of the most recent posts, Monero representatives confirmed that by August 20th, all three audits were successfully completed by third party companies, which means that the network is getting closer to implementing bulletproofs protocol.
In accordance with the information found on KryptoCal, the event of releasing bulletproofs protocol is scheduled 12 days ahead of the time of this writing, which means that the new protocol should meet the network on September 30th, that way symbolically entering the last quarter of the year 2018.
The team behind XMR have already introduced the initial protocol back in 2017, stating that not many projects have tried bulletproofs. With the upcoming implementation, not only that Monero users will be able to take advantage of the extended privacy, but will also be able to enjoy the perks of having transaction fees cut by 80%.
Since the protocol should create a more scalable and efficient system out of Monero, also solving the issues that RingCT was causing at times, there will be major space savings alongside with faster processing times and cheaper microtransactions, which could eventually send XMR to the moon.
Monero XMR in the Market
Monero is already doing pretty well on monthly charts although we can see XMR dropping by over -3% on September 17th with the latest negative market trend that came approximately 48 hours ago.
With bulletproofs implementation, it is expected to see increased trading volumes in XMR as well as a possible price increase due to enabling faster and cheaper transactions with the extended privacy and removed bugs.