COMIT Network rolls out beta version XMR-BTC Swapping utility on the mainnet of Monero. This will hopefully make exchanging currencies much safer and easier.
The swapping tool will indeed prove to be quite useful. The tool will help in conducting atomic swapping of both cryptocurrencies without the need to go through a centralized exchange. So, the question arises about the security and stability of Monero’s Mainnet because there are definite chances that ongoing swaps might get interrupted by exploiters. In counter to these vulnerabilities, Monero’s ring signature system comes into play. The system uses a minimal ring size, mainly limited to 11, to ensure anonymous dealing. The receiving end is guarded using hidden addresses. Meanwhile, funds present inside the ring are usually the same. This technique is said to work flawlessly against any exploiters as it makes it difficult for them to figure out the source of the dealing. Until and unless a larger ring size is used, it is very difficult to track the origins of transactions.
Even if Monero has a much more private method of dealing with transactions than Bitcoin, it is still not such a simple task to perform. Using ‘Churn’ transactions, transactions can become nearly impossible to track because of the immediate fund jumping from wallet to wallet. However, this method hasn’t been used much. According to researches, the only way to reduce the privacy of a transaction on Monero is to fill up the Monero blockchain with small lower-value transactions, leading to the removal of participants. Researchers revealed that more than 47.6% of transactions could be traced using this method.
Because of regular monitoring, Bitcoin gotten using high-level hacking are very difficult to launder. Every single Bitcoin can be tagged with its original source, so jumbling them up with other Bitcoin is a very difficult process, especially dealing with a large number of Bitcoin as we know that people who are willing to convert their Bitcoin into XMR are forced to use centralized services that keep hold of their sensitive personal data. Atomic Swaps do not require the user’s private information, greatly improving the privacy of users, helping them conduct safe transactions.
Because cryptocurrencies have had a history of being used at very dangerous places for transactions such as the Dark web, it is very likely that attackers can use them to conduct attacks on networks, which can result in massive loss of wealth. This will also make governments restrict the use of cryptocurrencies. As we can already see, huge countries, including India, China, and Turkey, have imposed bans on using cryptocurrency.