- The hard fork introduced several fixes to the internal multi-signature mechanism
- The update seeks to increase the overall performance of the whole ecosystem built around Monero (XMR)
- Privacy tools in the crypto space turn out to be a double-edged sword for users
On 13th August, Monero executed a protocol update to improve several privacy and security features within the network.
The well-known privacy protocol, Monero deemed the hard fork successfully performed on block 2,688,888 after a collaborative effort.
The Monero Hard fork
The hard fork took place after almost 4 months since it was announced. The collaborative effort brought about 70 developers to the initiative.
The hard fork introduced several fixes to the internal multi-signature mechanism. The move aimed to facilitate the exchange of information such as key sets and data synchronization. The exchange of information consequently happens between wallets.
Monero hence introduced the concept of Multisig, which is commonly used in transactions that require multiple signatures before submission. Once the signatures are obtained, compliance and execution take place in the network.
A whole group of wallets collaborates to transact.
In addition, the number of cosigners needed for signature verification rose from 11 to 16. Ring signatures ensure that the origin of the transactions remains secure. Multisig, however, makes Monero the most popular cryptocurrency among privacy enthusiasts.
Privacy updates
In terms of security, Monero upgraded the bulletproof algorithm to bulletproof+. Bulletproof represents a zero-knowledge-proof algorithm implemented in 2018. The algorithm reinforces the network’s privacy.
Bulletproof+ hides the exact number of transactions. Furthermore, the algorithm only shows the origin and destination of the transactions.
Another significant improvement entailed the release of the ‘View Tags’ update. The new option allows the network to speed up wallet synchronization by 30% to 40%.
The update seeks to increase the overall performance of the whole ecosystem built around Monero (XMR).
Protocols and security
Monero’s hard fork signals a big departure from Bitcoin’s security model. The hard fork provides a perpetual incentive to miners relying on reasonable fees to boost security.
The Monero hard fork guarantees the network’s security and makes it untraceable. The hard fork update hails as the 15th update by the platform. Monero, however, expects more updates in terms of privacy and network security.
This surprisingly comes at a time when governments continue to pursue privacy-oriented protocols and developers.
Privacy tools in the crypto space turn out to be a double-edged sword for users—many criminals abuse these protocols to launder money and evade authorities.
Earlier last week, a Tornado Cash developer was arrested in Amsterdam. The authorities claim that the developer infringed laws regarding money laundering. The Amsterdam authorities added that the developer created a tool used by criminals to launder money.
Recently, the smart contract banned some of the wallets sanctioned by OFAC. Though a decentralized project, Tornado cash remains a tool exploited by fraudsters.
In early January, hackers attacked CryptoCom, robbed 4,600 ETH, and laundered money through Tornado cash. The CryptoCom loss tallied up to $15 million worth of Ethereum.
Meanwhile, most users only want to take advantage of anonymity. Anonymity preserves their right to move their money privately.
