Through a virtual contact with CriptoTendencia, Nico or Behack, author of the book Mastering Monero, shared some of his thoughts on privacy in cryptocurrencies. In that sense, he was emphatic in stating that Bitcoin is traceable due to its transparent Blockchain. It is a negative quality that nullifies the right to privacy and makes personal finances easy prey for governments.
According to what the author explained in his book, the Monero cryptocurrency (XMR), due to its structure, makes it the best option. Meanwhile, its Blockchain hides both the address it sends, the one it receives and the amount at the same time. These qualities make the XMR holder invulnerable to governments and their impositions, as well as criminals.
On the other hand, the impossibility of being mined with ASIC machines, avoids the disaster of centralization that happens with Bitcoin mining. Thus, Monero is presented as a safe, private, undetectable and, at the same time, democratic currency in its mining. Basically anyone with their computer can mine this cryptocurrency from the comfort of their home. There is no power in the world that can find a miner, there is no disproportionate power consumption and there is no noise.
I do not recommend Bitcoin because it is traceable
The Italian IT security expert, Behack, lamented that such a popular currency as Bitcoin is traceable. He also referred to other cryptocurrencies that are presented as “privacy protectors».
Among all of them, he affirms «the only one that protects privacy by default is Monero. Currently, many cryptocurrencies offer the possibility of making transactions without allowing a significant amount of data to be leaked. Many are built in various methods such as the RingCT. The problem with these coins is that privacy is an option and not an attribute imposed by the network».
Tracking them is not a problem, since you can discriminate private transactions from normal ones, he says. When asked what is the main difference between Monero and Bitcoin, Behack it is emphatic. «Bitcoin does not even offer a minimal option to protect the privacy of its users».
He adds: «many companies were created to analyze and report any activity that they consider suspicious. Some of these firms are Elliptic and Chainalysis», He stressed. According to the author, any government can use their tools to determine the user behind the transfer with a high probability of success.
«Monero, for its part, uses different techniques. Try opening the Monero Blockchain explorer and compare it to the Bitcoin one. You will see that it is impossible to track the flow of transactionsNico added.
Some examples of privacy protection with Monero
Considering that Bitcoin is traceable and its use under control regimes is not recommended, it is worth asking, what does using Monero protect from? In the book Mastering Monero, Some situations are shown that can serve as examples of how Monero can provide protection in everyday life.
- Avoid price manipulation: Sofia is the only mechanic in a small town. One of your clients pays you in Bitcoin for the oil change service. Sofia checks the wallet of your client in the ledger and he realizes that he has enough BTC to buy a Lamborghini. The next time her client requires a service, she will double the price of the service. If this customer had used Monero, Sofia would not have the option to view and use the information to manipulate prices.
- Avoid discrimination: Ramona rents in her dream apartment, conveniently close to her new job. The rent is paid in Bitcoin. However, the owner of the property realizes (because Bitcoin is traceable) that the origin of these coins dates from a legal online casino. He hates that kind of gambling and decides not to renew the rental agreement. If Ramona had used Monero, the apartment owner would have been unable to discriminate against her because of where her funds came from.
- Privacy in the supply chain: Kyung-seok is a small merchant. It is dedicated to providing family dishes for local events. A large food company uses Blockchain tracking to identify its most regular customers. The corporation uses that Kyung-seok customer list to offer you 5% off deals. If you had used Monero, your customers would not have been stolen by the competition.
What makes Monero so safe?
Without going into the technical aspects related to the security and privacy of the Monero Blockchain, some general aspects can be understood. For now, they are reviewed superficially. To understand them in detail, we recommend chapter 3.2 of Mastering Monero.
- RingCT: Hide the transaction amounts.
- Ring Signatures: Protect the sender by hiding the amount of output.
- Stealth Address: Ensures that the address wallet of who receives is not registered in the Blockchain.
- Kovri: Breaks the link between the transaction and the physical address of the person who operated it.
The government seeks at all costs to exercise control over personal finances
During his communication with CriptoTendencia, the author of Mastering MoneroHe stated that he knows of terrible cases in Latin America. “In some countries, governments try to control all aspects of people’s lives. Many believe that with Bitcoin they escape from that control and it is not like that “, Explain. He adds that Bitcoin, being traceable, allows governments to collect large amounts of data.
“People underestimate the amount of data that can be obtained by following the Bitcoin transaction trail. From information related to personal interests, to technical details of the product or service purchased such as the size of a flannel, etc. », alert Behack.
In some Latin American countries where Bitcoin is allowed, this legality conceals a trap. Governments, under the guise of avoiding money laundering or the proliferation of weapons of mass destruction, aim to force cryptocurrency users to declare sensitive information related to transactions.
Although it seems funny to imagine a citizen using the pair of satoshis that he bought in an exchange to build an atomic bomb, the matter is serious. Governments use the money stolen in taxes from their citizens to manufacture and use weapons against the civilian population. Paradoxically, they suspect that crypto users do the same as them and punish them in advance.
As for money laundering, it can be said that Latin American politicians are “stars” in this field. Long before cryptocurrencies appeared, money was notoriously laundered in the region. According to leaks like the Panama Papers, the practice continues.
What is required to mine Monero?
The problem with Bitcoin is not only that it is traceable, but that its generation process (mining) is totally centralized. Satoshi Nakamoto’s idea in the White paper, on the possibility that everyone can mine from their computers, was swept under the rug. Currently, becoming a Bitcoin miner is outrageously expensive, plus all that investment can be lost on a simple government whim.
The pioneering cryptocurrency mining business is reserved for a privileged group. It is headed by giants like Riot Blockchain, Bitfarms or the huge farms of ASIC manufacturers like Bitmain.
For its part, to mine Monero, you do not need more than a computer and Internet access. Naturally, the better features the PC has, the better the reward. But having an old computer is not exclusive. On the Monero page, you can follow the instructions step by step.
Monero has a special feature, which is a variant of the PoW Algorithm CryptoNight. This differs substantially from that used by other cryptocurrencies in that it avoids the optimization. In simple words, it blocks the acceleration of the mining speed, which prevents the creation of very powerful processing equipment. These inevitably lead to centralization.
You want to know more? Download Mastering Monero for free
During the electronic interview, Behack, he shared some of his motivations for writing Mastering Monero. First of all, it highlights that the book is open source and can be downloaded for free. It has translation in several languages. The author regrets that there is so far no version available in Spanish. However, he assures that this work is in progress and the collaboration of translators is welcome.
Regarding his motivations for writing the book, he expresses: “After knowing and understanding Monero, I began to develop ideas to support the Monero community.” Underlines: «every day I dived deeper into the Monero repository code to better understand how it works. Then I found that there is not enough material dedicated to new to Monero and the few that do exist are written in complex terms». The point was, make people understand with simple terms that they require Monero because they need privacy. Bitcoin is not the best of the alternatives because it is traceable.
He explains that for someone who wants to get into Monero, they will find that they have no sources of information, which is not a good start. This is how the idea of writing Mastering Monero.
It should be noted that this work, which exists in print and digital, is one of the most advanced guides to understanding cryptocurrencies. Their language is written in a harmonious way, illustrating complex issues with everyday examples that make reading enjoyable and enriching.
Future projects for the book
Behack assured that he is actively working on the second edition of Mastering Monero. At the same time, it highlights that its main focus is on people’s lack of understanding of essential aspects of cryptocurrencies. The latter, he explains, is evident in the field of computer science. Evidence of this is the belief that Bitcoin is not traceable.
He believes that people must learn to detect fraudulent projects. It is normal for many to fall into the trap of a scam, because they cannot determine if a given project is solid. There are so fictitious currencies that not even Blockchain have, he warned.
Finally, the author invited everyone who believes that privacy is a human right to join. In Latin America, he highlighted, there is great potential and many ways to collaborate with Monero. In this sense, patch up the article by Seth Simmons Contributing Monero.
«I believe that everyone can help Monero no matter what field they specialize in. Developers, engineers, entrepreneurs and anyone who values privacy are welcome», He highlights.
Data to take into consideration
- To download Mastering Monero (English) enter this link.
- The cryptocurrency XMR, is immune to appropriation by governments, since it is impossible to trace.
- In this way it becomes a weapon of empowerment of people to maintain their financial privacy.
- The Monero Blockchain hides the sender, the receiver and the amount of the transactions.
- Also, its PoW protocol CryptoNight locks optimization. That means they cannot be mined with ASICs.
- Anyone can mine Monero with their computer without major difficulties.