Monero (XMR) Sees Reduction in Transaction Fees, As Low as 2 Cents After Bulletpoint Fork
The transaction fees of Monero have reduced to an average of 2 cents. This is according to a recent a crypto asset analytics company called Coinmetrics.io. Apparently, the price drop is as a result of the recent hard fork on the Monero blockchain network.
The primary objective of the hard fork was to deploy the ‘Bulletproof’ technology on the Monero network. Bulletproof is a short non-interactive zero-knowledge proof that uses a trustless model. The necessity of the hard fork was fueled by the obscuring of transactions details of the Monero token from public verification.
The Bulletproof technology was launched earlier this year with an aim of making digital currency transactions more confidential. It enhances the privacy of transactions by shrinking the size of the cryptographic proofs.
Before the deployment of Bulletproof, the Monero network relied on its proprietary Ring Confidential Transactions functionality to make transactions private. However, with the introduction of Bulletproof, the size of anonymous transactions on the Monero network are expected to reduce significantly. This would translate to reduced transactions fees, as mentioned earlier.
Since the beginning of 2018, the transaction fees have been steadily dropping. The record high transaction fees on the Monero network were attained in December 2017, coinciding with the famous bullish run in the crypto space at the time. Back then, the price of XMR was around $460. The current fee of 2 cents is the record low on the XMR blockchain.
The Bulletproof update had an impressive reception among members of the XMR community. In fact, most of the comments on social media regarding the hard fork were in its support. On Twitter, Bad_Ape tweeted that they were buzzing with excitement. Similarly, many users in the Reddit platform expressed their delight over the reduced transaction fees. The reduction of transaction sizes was confirmed through the Twitter account of Riccardo Spagni, a lead developer of Monero.