The tenth-largest cryptocurrency by market cap – Monero – has a great news for its investors! After the successful execution of Moner’s hard fork last week on October 18, transaction fees for XMR users has dropped considerably by 96% from 60 cents to just 2 cents, according to data provided by CoinMetrics.
The latest hard fork on Monero is named “Monero 0.13.0 Beryllium Bullet” which implements a non-interactive, trustless, zero-knowledge framework called “Bulletproofs” for the XMR cryptocurrency. This allows XMR transaction details to hide from the public blockchain validation.
Bulletproofs Bring this Massive Drop In the Transaction Fees
CoinMetrice confirmed this massive drop in Monero’s transaction fee on its official Twitter handle. It also noted that the average transaction size has also dropped from over 83 percent from 18.5kb pre-fork to just 3kb.
— CoinMetrics.io (@coinmetrics) October 20, 2018
This drastic shift was early predicted by Monero core developer nicknamed “moneromooo” while speaking to CoinDesk. In a word with the publication, “moneromooo” said:
“I think you can safely say a typical [transaction] fee goes down by more than 95 percent.”
Moneromoo further noted that fees reduction can be even lower depending on the type of transactions which users create.
Last week on October 18, Russian new publication Forklog reported that the Monero hard fork took on block number 1685555, while the Bulletproofs and version of the software were implemented at 1686275. A major reason behind introducing Bulletproofs was to overcome a number of existing issues and at the same time providing enhanced privacy features with cheaper and faster transactions. Bulletproofs also provides a greater resistance to ASICs while preventing risks pertaining to centralization.
In order to achieve this, Bulletproofs also reduces the size of cryptographic proofs it uses that further leads to over 80% decrease in the transaction size. Hence, Monero now requires a substantially less disk storage space then it earlier used to. Ever since the successful implementation of the hard fork, mining difficulties have dropped significantly said the XMR miners. Monero lead developer Ricardo Spagni replied to CoinMetrics tweet saying “Monero is now unfairly cheap.”
Monero is now unfairly cheap https://t.co/iVjsYNaV78
— Riccardo Spagni (@fluffypony) October 20, 2018
Monero’s market cap stands to a 3-day high at $1.735 billion and daily trading volume going over $14 million. Although Monero too remains the victim of the overall price-drop of the crypto market this year, it still remains as one of the most popular cryptocurrencies among investors. Currently, at the press time, Monero (XMR) is trading for $105.15.