Monero’s (XMR) transaction fees nearly drops to zero after a software update

An introduction of Monero or XMR

Monero or better known as XMR was initially launched on the 18th of April, 2014. XMR has come a long way since then. Just like a majority of other cryptocurrencies at the start, XMR was worth almost zero dollars. From being worth dollar zero to the world’s top 10th cryptocurrency, Monero has had a wild four years ride.

Talking about the technical side of XMR, it is a cryptocurrency which mostly focuses on privacy and fungibility (a digital asset that is freely interchangeable with another in satisfying an obligation). Now, almost all the top cryptocurrencies have something unique about them and so does Monero.

The special transaction system used by XMR makes the recipient, sender and amount of every single transaction invisible. If a user sends funds to another user across the border, the transaction will almost be untraceable and invisible unlike a majority of other cryptocurrencies. In the case of other cryptocurrencies, the transaction history of a user can be easily traced back by having a look at the shared ledger.

The client’s history could be used to blacklist the specific blockchain in an exchange. However, in Monero’s case, because the coins are interchangeable, there is no possibility of finding out a user’s transaction history by having a look at the shared ledger. In order to send funds to a recipient, the sender will have to generate a one time use “stealth address” based on the public address of the recipient.

Every transaction is sent through a different and unique stealth address where only the users with the view key can view the transaction data. It is up to the sender to decide whether to share the view key with the recipients or not.

Monero (XMR) Price Today – XMR / USD

Name Price24H (%)
Monero (XMR)
$86.43
1.01%

Monero’s Transaction Fees Drops by 96 percent

The cryptocurrency which has a market cap of over 1.7 billion US dollars updated their software on the 18th of October 2018 or last Thursday. The platform has introduced a new type of cryptography which is known as “bulletproofs.” The upside of this new enhancement is that the privacy feature is now more scaleable as compared to before bulletproofs activation.

The new technology verifies transactions more efficiently which in turn makes the whole privacy feature much more scaleable. The transaction fees have been as high as 0.64 cents. Talking about the transaction fees, before the system update the fees were about 0.54 cents. After the update, the transaction fees dropped to 0.021 cents which is a little over ninety-six percent drop.

The drop in the transaction fees was expected after a Monero developer named Moneromooo stated; “I think you can safely say a typical [transaction] fee goes down by more than 95 percent.”

Another developer called Hyc stated; “The upgrade will definitely make the notion of micropayments more palatable again.”

As reported by Theoofy earlier Monero could go as high as $400 per coin due to its true privacy feature. Although because the crypto market has been very bearish lately, all the cryptocurrencies are at their lowest, the reduction in transaction fees has already stabilized the price of Monero (XMR). Moreover, experts are predicting that this fee reduction could result in XMR’s price to skyrocket.

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