Is Monero a Top Contender for Bitcoin?
This question came from 'Justin' who asks whether and how Monero will compare to Bitcoin, and how Monero will fit into our Blockchain future. In this video, I ...
What's up, party people? How are you? You have to do it like, what's up, party people? You're crazy. What's up, party people? How are you? Really, I'm on Nickelodeon, this is great. How is everyone doing? What should we ask about? So the question today is, how does Monero compare to Bitcoin, or is Monero superior to Bitcoin? You wanna say that? I don't know who...who is Monero? That's good enough.
What's up, party people? Chris Derose here, Community Director of the Counterparty Foundation. And in today's video< I was asked by Justin Nunez, Justin asked, "Chris, is Monero superior to Bitcoin or is Monero offering advantages to Bitcoin?" So I was asked this question a couple of times even in the south Florida channel, we have a guy that's very into Monero. And it was really fine watching the progression of that coin because Bitcoin is a bit of fragile, I actually have to commend the Monero people. If I'm not mistaken, they didn't fundraise. I think that they didn't fundraise at all, I think that they did a burn, or something like that, which would typically if I'm right please correct me in the comments if I'm wrong, would make them a resource project and not a company. So, yeah, it's really great we start these open source project, obviously Counterparty is one.
We don't fundraise and it's a great way to setup the incentives of developers to do something that's very productive and productive for egalitarian and nonprofit reasons. Reasons that produce high quality software that is not under the pressure of having to deliver under a deadline or delivering a project specs that perhaps are not necessarily in line in what the developer sees as scratching his own itch. So well let's talk Monero because I think what Monero is, though I liked a lot of those features of Monero, what I didn't like about Monero right off the bat was it seemed it was an incremental improvement over the Bitcoin technology. So you know what you see in open source projects, typically what you see is that when there is a competing project and there is a good feature of that project, that feature get rolled into the main projects. So you look at something like, let's say Apache or something like that, where it's an open source project and it adds a nice feature. Well that feature will make it into lighttpd or nginex or vice versa.
There is a lot of shared features that go back and forth and this is what we saw with Monero. Monero really hung its hat on anonymity features and those were great and those were good. And I was always saying, "Yeah, that's, you know, that's a thing." But if we need those features in Bitcoin and if they are an advantage to Bitcoin, we'll add those features to Bitcoin. And sure enough, that's what happen. We've seen in the newest.
.well, it's about to happen. We've seen in the newest blog stream videos that a number of the dabs are looking to add fungibility to Bitcoin which is an anonymity, and not only are they looking to add fungibility, they are looking to add the ring signature functions that were in Monero to Bitcoin. So I think that what you see a lot in these competing technologies is that if there's good features, they will be added to Bitcoin at the time. Because Bitcoin has the network effect. We want Bitcoin to be mature, we want Bitcoin to work and if anybody wants to deliver their features on our platform, they wanna prototype it for us, that's great.
But those are all reasons why you probably you shouldn't be investing in this competing chains. They are not typically wise investments. They do not have the network effect. And another issue that I have with Monero, certainly at this point is that the entropy in that network is very small. So you look at the amount of transactions in Bitcoin, huge amount of transactions. You look at even the of tumble transactions, and certainly when we have ring signatures, you look at the amount of transactions in that sense, it's a huge amount of entropy.
This is randomness from which we can actually deliver on fungibility promises and on anonymity promises. And Monero never had that. There was so few people using. It was probably pretty easy to trace in the scheme of things within a smaller network. Because you know with a certain degree of probability, it's one of these people probably. You look at the exchange volumes, you can tie a bunch of things together like that, because it's a very small network.
But when you bring those features to Bitcoin, now you get the network effect of all those features. So I don't know what Monero's function is now. They really hung their hat on these fungibility features, and now that those features are no longer a competitive advantage, I don't know what they're gonna do. Are they gonna close the shop? Are they gonna find a new feature? Five-second block times or something like that? I don't know. Historically, it's very hard I think for these apps to walk away from a project when it's redundant and that's probably what it is at this point, but we'll see. I don't know maybe there will be some problems integrating the fungibility features into Bitcoin, and maybe there's a way to see if that happens.
I think it will. But hey, maybe you have a competing opinion. Why don't you put in the comments below or maybe you have some more question about Monero. Why don't you tweet me on Twitter my handle is derosetech. I always like hearing from you guys. So peace out.
Later, party people.