After AlphaBay and Oasis announced that from now on they would be supporting the yet-to-be popular cryptocurrency Monero, /r/DarkNetMarkets subreddit and marketplace forums have been flooded with posts filled with different kinds of misinformation about the subject.
Other than being much less popular than cryptocurrencies like Ethereum and Bitcoin, Monero is yet to clear users’ confusions regarding the level of security it is capable of offering and its method of use.
Recently, “sapiophile,” a moderator at /r/DarkNetMarkets, came up with a post offering an essential warning to individuals looking to use ShapeShift/Monero, but without ending up in jail.
The post has turned out to be extremely helpful and has assisted in clearing the majority of the concerns discussed in the community.
Most of the concerns the community had about Monero resulted from lack of knowledge about the working procedure of the cryptocurrency.
One of the main reasons behind the popularity Bitcoin is enjoying today is its decentralization. Monero adopted an absolutely different working principle, and that decision appears to have gone against it.
Significant points covered in Sapiophile’s post
The privacy of Monero has its roots in the transaction’s sending side.
If the sender is not sending Monero himself or herself, from his or her own computer, and running Monero software he or she owns, the person would never gain any privacy in spite of using a particular vendor’s Monero receiving address.
This makes Monero a lot like GPG; one should never rely on another party for doing it on his or her behalf.
This feature often turns out to be a big problem. That’s because few would want to take the pain of running personal
That’s because few would want to take the pain of running personal Monero software. Instead, they would prefer doing something like sending Bitcoins to ShapeShift so that ShapeShift can send
Instead, they would prefer doing something like sending Bitcoins to ShapeShift so that ShapeShift can send equivalent amount of Monero to the vendor of their choice or the market.
That’s actually a pretty unimpressive procedure. If you choose to use such a method, you would stand to lose your privacy; since your privacy would be entirely dependent on how trustworthy ShapeShift is.
Here, it must be mentioned that ShapeShift is a registered firm and needs to abide by a series of laws, which include “anti-money laundering (AML)” and “know your customer (KYC)” laws.
The laws mentioned above make it mandatory for ShapeShift to record all transactions so that law enforcement departments can check it at any given time.
This rule of keeping records ends up destroying the privacy that users gain through different security measures adopted by Monero (examples include Stealth Address and Ring Signatures).
If you need to rely on another party for your anonymity, privacy, or security when carrying out a transaction online, there’s no doubt that you are at significantly high risk.
One of the aspects of systems like Bitcoin, GPG, Tor, etc. is that each of them is trustless.
These systems work with the aim of ensuring the users’ well-being without the need of relying on any third party platform.
That’s the reason why it is extremely important to manage Electrum and other light BTC wallets carefully. You should use such wallets only when they are perfectly anonymized, something that is extremely difficult to achieve.
The final explanation
According to the post published on Reddit, to use Monero securely, you must follow the same principle.
In addition, you must have enough knowledge about this cryptocurrency to use it effectively.
There are actually two recommended starting sites; the first one is obviously Monero’s official website and the second one (which according to some is even better), is /r/Monero, the cryptocurrency’s subreddit.
Latest posts by Richard (see all)
- 12 Farmers Arrested for Unlawful Cultivation of Cannabis - June 23, 2017
- Demand for Bitcoin Continues to Soar in Venezuela - June 22, 2017
- New Mac Malware Spotted on the Dark Web - June 22, 2017