The Swap tool of XMR-BTC launched by COMIT Network at Monero’s Mainnet is all set to permit users to execute trust-less atomic swapping between a pair of cryptocurrencies. Monero was chosen as the platform for launch owing to its ring signature framework that maintains a minimum ring size to preserve anonymity. The platform employs stealth addresses to protect the users and maintain the confidentiality of transactions.
Monero employs the native cloaking system to secure the transactions, but the security mechanism is still not foolproof. However, by the creation of churn transactions, Monero can reduce the chances of hacking and manipulation by retracement techniques. Researchers are trying out the security measure of overloading the Blockchain network of Monero with low-cost transactions by about 47.63% to de-anonymize the XMR exchanges.
At conventional forums, people who seek to convert BTC to XMR can do so by registering details like transaction history and IP address at a centralized platform. With the advent of the Swap tool, the users can make use of the on-chain atomic swap mechanism to toggle between the cryptocurrencies easily without registering any information. This system greatly enhances user privacy by enabling people to channelize through Monero for liquidating XMR or Bitcoin without leaving a trail for information.
The abolition of the centralized exchange service is highly advantageous, but there are certain disadvantages too. XMR is notoriously used in the Dark Web marketplace and its increased use along with other cryptocurrencies is likely to lead to a rise in a ransomware attack. With improved cross-chain privacy, international governments may use cyber-criminals as scapegoats for imposing restrictions on cryptocurrency trading and use. There may also be a suppression of fiat offramps, especially in the US, where the economists seek to increase the tax revenue.