Explore this Ecosystem and Crypto with Amazing Benefits

Firo was built to protect the main goal of cryptocurrency – to provide the public utility of money. As fiat currencies across the world, the control over funds is obviously not the same as fiat currency. Bitcoin was created as the solution to this problem with no reliance on any third party. However, the lack of privacy on Bitcoin has created a long list of blacklisted funds.

To enhance privacy, Firo fully dedicated itself to developing a privacy-focused cryptocurrency by crafting privacy protocols Lelantus and Lelantus Spark and inspired other privacy protocols like Triptych, and Seraphis.

Firo uses a hybrid POW and LLMQ chain locks system combining the fair distribution of supply with protection against 51% attacks and quick finality of blocks and transactions.

How the Privacy Mechanism of Firo Works

The privacy mechanism of Firo includes burning the coins to destroy them so that they stop existing, and later redeeming them. This process of destroying and later redeeming, breaks the link. Hence, no previous transaction history can be tracked. 

This is lacking in Bitcoin, so it only provides pseudo-anonymity.

The redemption of the coins includes zero-knowledge proof. It does not highlight the coins burnt. The minted coins appear as new coins as they do not have a previous history of transactions and have no links with the coins burnt. The input and the change amount are also hidden in the Lelantus protocol.

The upcoming Lelantus Spark protocol has taken the idea further with all the amounts hidden and also removed the requirement to redeem. Users can pass the coin among themselves without revolving the output amount. The Spark addresses are publicly shareable but cannot be discovered in the blockchain.

What is Zero-Knowledge Proof?

Zero Knowledge Proof is a method to prove something without disclosing the details about it. For example: The user has 1 Million in digital assets and it is shown that the user has a Million of assets without disclosing the amount the user holds or transacts.

It allows others to verify transaction validity without disclosing the details of the transaction. Firo’s privacy protocol uses zero-knowledge proof to permit people to burn the coin and redeem the new coins without any previous history of transaction and showing which coins are burnt.

Firo Protects the Transaction on the Network Level

Firo is the first cryptocurrency to use Dandelion ++ on the mainnet. Most of the other cryptocurrencies use the gossip model which means they tell the nodes about the transaction when they receive it. In this way, the information flows. The opponent can easily track from which node the transactions are made by monitoring it closely.

Thus, it is vulnerable to scrutiny. On the other hand, when a transaction is made on Firo, Dandelion ++ confuses the way transactions are broadcasted, by randomly selecting the other node about the transaction to switch to gossip mode. This makes it tougher to guess which node started the transaction.

Firo supports the TOR network that can work alongside Dandelion++

How are the Firo Funds Used

There will be 21.4 Million Firos. It follows the same distribution halving as Bitcoin. The current block reward is 6.25 Firo. The block reward distribution includes Miners -25%, Masternodes (50%), Development (15%), and community funds (10%).

15% of the Firo funds are utilized for the development of the fund development work and other efforts in promoting coders and cryptography researchers, audits, bugs, and community managers.

The Current Market Analysis of Firo

The data from Coingecko shows that Firo has a market cap of $22,510,721. The circulating supply of the token is 13,057,731 and the trading volume is $378,935. The fully diluted valuation of the coin is $36,892,277. The total supply of Firo is 21,400,000.

The floor price of the coin is $1.72. The 24-hour Low/high is $1.69/$1.74. The seven-day low/high value is $1.64/$1.86. The market cap rank of the coin on Coingecko is #748. The coin has a market cap of $22,510,721. Market cap dominance is 0.002%. The time high of the coin was $129.77 on December 26, 2017. The all-time low of the coin was $0.279591 on December 2, 2016.

Advantages of Using Firo as an Online Payment

There are many advantages of online payments when compared to the traditional methods. Some of the comparable advantages are

1. Security and Privacy: The zero-knowledge proof is used in Firo which keeps the customer transaction confidential and untraceable.
2. Fast and Efficient Transaction: Blockchain technology made quick and seamless transactions possible.
3. Lower Transaction fees: The traditional payment system often comes with significant transaction fees but with Firo the transaction fees are low which reduces the payment processing cost of the business and potentially passes on the savings to customers making their services and products more competitive in the market.
4. Future-proofing the business: Using Firo acts as a future-proofing of the business as it shows that the customer is ready to adapt the future customer preferences and stay ahead of the competition. The emerging payment option of Firo is embraced with highlighted security and privacy.
5. Expanded customer base: To increase the online business one can enhance the customer base by FIRO. By including FIRO as the payment option the user can reach the new market of cryptocurrencies and reach the customer base who are interested in making purchases in digital currency. This expands the customer base.

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.