Bitcoin is losing its position as the number one currency on the dark web as other cryptocurrencies are taking over. One of these currencies is Monero. A dynamically scalable cryptocurrency Monero is based on CryptoNight proof-of-work algorithm which makes it untraceable and hence, provides its customers with high level of privacy.
What is Dark Web?
Dark web is a part of World Wide Web that uses non-standard communication protocols and allows users to communicate through internet anonymously. It is concealed through series of identity masking layers which makes this part of internet a private market where the identity of a user gets difficult to trace. In order to access the dark web, special software(s) are required. One of the famous software is TOR (widely known as The Onion Router). This routes everything to a series of encrypted computers all over the globe instead of routing the connection through a direct line. So when a person browses the internet via TOR, his or her request bounces around randomly before it reaches the host destination.
Although TOR, a darknet software was created by the US Naval Research Lab for US Navy’s intelligence officers to surf through internet anonymously. Gradually TOR became famous among the illegal and black marketers trading drugs, guns and child pornography. While Dark Web via TOR provided these traders a medium through which they can communicate anonymously, Bitcoin, because of its quasi-anonymous characteristics provided them a method of payment.
Years back, Bitcoin was the only fundamental platform that provided people to make transactions anonymously. It was the only medium that allowed people to sell and receive payments where traditional currencies were restricted, not suited or impractical. However, there exist privacy issues in Bitcoin as the Blockchain technology behind this cryptocurrency is flawed. The transactions and addresses of Bitcoin get recorded on the blockchain and also these records are available publically. Therefore, these records can be used by blockchain analytics to trace the identity of the person involved in a transaction. This clearly means privacy of a Bitcoin user is at stake.
Privacy Features of Monero
Monero, on the other hand is known for its feature of providing high level of privacy to its customers. This is the reason why this cryptocurrency is getting popular in the dark web. It’s been the longest since as the privacy coin and it has never, ever been hacked. One can never find out who the sender or receiver is. A user has to never request or verify whether the other person involved in a transaction has enabled privacy mechanism while making a payment or transferring funds because privacy is always on and applied to all the transactions. Although many cryptocurrencies were launched in order to combat the problems of privacy in Bitcoin such as Zcash, Dash and more but, they also somehow failed. So what makes Monero different?
Monero protects anonymity in a three-step order- ring signatures, ring CT and stealth addresses. Just like Confidential Transactions, Ring CT hides the amount of each transaction, Ring Signatures makes the transaction unlinkable (origin of the transaction cannot be identified) and Stealth Addresses hide the address of the receiver and therefore makes the overall transaction untraceable. This high profile privacy provision attracts the traders on the dark web and makes them choose Monero over Bitcoin.
Other Advantages of Monero
Other than privacy, there are many more advantages that are provided by Monero over Bitcoin. This coin also offers fungibility which means each unit of currency can be substituted for other which gives each coin an equal value. Monero is beneficial here because in case of other cryptocurrencies, addresses associated with coins previously involved in an undesired activity can be refused by other users but this does not exist in the case of Monero because of fungibility. Dark web marketplaces such as AlphaBay and Oasis have used it extensively, because of its popular demand by buyers. These are few of the main reasons why Monero is chosen specifically by the traders on Dark Web instead of Bitcoin and hence Monero is on its way to take Bitcoin’s limelight on dark web.