Cryptocurrencies are around for over a decade now. With over a couple of thousand different cryptocurrencies, each with their own set of unique features out there, very few cryptocurrencies specialize in user privacy. Monero is one of them.
The idea for Monero popped up back within the summer of 2012 when user privacy issues on multiple social media platforms were a serious concern. In fact, Monero was actually the result of the failure of another cryptocurrency.
In the summer of 2012, Bytecoin was initially released, with the pure intention of maintaining user privacy. However, at the time of its initial release, it had been realized that there was a bug within the system which resulted in 80% of the entire coins being introduced into circulation. As a result of this disaster, Bytecoin was forked into Bytemonero which was later renamed to Monero.
Monero could be a totally untraceable cryptocurrency, however, one can share the small signature of one’s wallet. Thus, Monero doesn't go against the principles set by any government.
Additionally, Monero also breaks down centralization when it involves mining other cryptocurrencies.
Monero is ASIC resistant. This suggests that the mining power isn't concentrated with a couple of rich companies who have access to powerful ASIC devices. Instead, anyone with a CPU and a GPU can start mining Monero directly.
There is no way a specific Monero transaction is often linked to a specific wallet or a specific person.
This is the most reason why many of us prefer Monero for his or her everyday business.
As Monero is essentially privacy-oriented, the applications of this project don't transcend a payment system. Currently, in the 14th position on the CoinMarketCap, Monero may be a cryptocurrency that's widely used as a payment system.
Let us now have a closer look at Monero and understand what makes this project so unique.
The team behind the project:
The core team of Monero comprises just seven people. A bit like how nobody knows the true identity of Satoshi Nakamoto, the developer of Bitcoin, only two of the five core developers of Monero have opened to the online world. The remaining five have decided to remain anonymous and work from the shadows.
The two developers who have revealed their identities to the planet are Riccardo Spagni and Francisco Cabañas who are more popularly known from their aliases, fluffypony, and arcticmine.
The whole Monero project is open source which suggests that anyone can view and suggest upgrades to the present working of the network. Monero may be a cryptocurrency that's privacy centered, so it makes complete sense that five of the seven developers also like better to remain anonymous.
It is this anonymity that provides the developers the liberty to develop and support the Monero project. Hence, we will now see Monero being one of the highest ten cryptocurrencies out there.
Getting started with Monero:
In the year 2012, user privacy was the main point everywhere on the web. Social media platforms like Facebook were heavily criticized for the poor use of privacy control that it offered some time past. While everyone thought that your privacy is protected if you employ cryptocurrency like Bitcoin, it had been found that a specific transaction could actually be traced back to its origin on the Bitcoin network.
Thus, the necessity for a replacement privacy-oriented coin was needed. This gave birth to Bytecoin which was released within the summer of 2012. However, a serious bug on this platform was exploited which resulted in 80% of the entire supply of Bytecoin is available right after the network was released.
In order to stay the project alive, Bytecoin was forked to make Bytemonero. This was later renamed to what we've today, Monero. so as to supply users with privacy features, Monero uses a technology called Cryptonote.
Almost all privacy-oriented cryptocurrencies make use of cryptonote technology. So, as to supply user privacy, the general public keys are grouped together and whenever a transaction is formed, the transaction is signed by a gaggle of public keys. This makes it completely impossible for anyone to trace back the transaction to at least one particular wallet.
There is no upper limit to the utmost number of Monero coins. Additionally, the miner fee charged is additionally very low and therefore the transaction gets verified quickly on the Monero network. All these spells on the other blockchain network because it might attract tons of spam transactions. However, this is often not the case for the Monero network.
In order to avoid any spam transactions on the Monero network, there is a preset mechanism in place. In this mechanism, the miners accommodate only a particular number of transactions onto one block. The size of the block is kept constant. No transaction will be included in a block if the number of transactions present exceeds the preset size. Anything other than this size would impact on the mining rewards given to the miner. Hence, the miners would ignore all the spam transactions that have extremely low miner fees attached and therefore the normal operation of the Monero chain continues.
How does Monero work:
Monero is one among the very few cryptocurrencies out there, using which a user can have complete control of his privacy. you'll prefer to share your transaction details with just a couple of people or the entire world. This is often possible thanks to the way a Monero wallet is meant.
A Monero wallet consists of 4 addresses.
1- A public address- to receive Monero from other users.
2- a personal view key- This key is often wont to gain access to the small print of any transactions that involve your wallet.
3- A public spend key- this is often wont to verify a specific transaction signature.
4- a personal spend key- this is often used to spend the funds that are present in your Monero wallet.
In order to extend the transparency, users can share their private view keys with authorities like the IT department while filing their taxes. This not only makes the entire process easier but is additionally one among The explanations why Monero has not been banned by any country.
The strengths of Monero:
Monero is one of the few cryptocurrencies that have strengths in many various aspects.
1- Scalability: Albeit Monero doesn't have an upper limit to the entire supply, the limit imposed by the dynamic block size and therefore the reward-penalty system ensures that there are not any or very fewer spam transactions on the network. Thus, any transaction on the Monero network usually requires a very less miner fee and is confirmed quickly also.
2- Privacy: The pliability offered by Monero when it involves user privacy is totally unmatched. By using Cryptonote technology, no transactions are often traced back to its origin. However, thanks to the way this platform is meant, users can prefer to share with some authorities that they wish to. Thus, giving them complete control over their own privacy.
3- ASIC resistant: Albeit all the main cryptocurrencies steal the show by saying that they're a decentralized network, we will see that a serious part of the network is controlled and mined by a couple of mining pools. This is often thanks to the event of Application Specific Integrated Circuits that are capable of mining cryptocurrencies at a way faster rate. Thus, people with PC’s and graphics cards haven't any chance against all this.
Moneros, on the opposite hand, is totally worthless to mine using ASIC miners. The Cryptonote technology is more efficient when mined employing a graphics card and processor. Thus, helping to bring back decentralization to the platform.
How to buy and store Monero?
Monero is one of the foremost popular cryptocurrencies immediately. This is often the rationale why it's available on several major cryptocurrency exchanges. Moreover, it's available across a good array of trading pairs like BTC, ETH, LTC, USDT, USD, ZEC, etc. you'll continue any popular crypto exchange like Binance, Bithumb, Poloniex and trade it for other cryptocurrencies otherwise you also can inspect Bitfinex so as to shop for Monero using your fiat currency.
Once you purchase your first Monero coins, your next mission is to store them during a safe and secure place. The wallet provided by an exchange isn't very safe and you ought to use it to store very less amount of cryptocurrencies that you simply will use for executing quick trades within the future. The simplest wallet to store your Monero in is the Ledger Nano S.
If you've got invested tons of cash in Monero, you ought to store it within the hardware wallets. If you can't afford to spend extra money to shop for a hardware wallet, you'll always use the official Monero wallet. Alternatively, you can use the Moneroju wallet to store your Monero. It offers excellent security and a particularly user-friendly user-interface that is very easy to understand and navigate through.
Future of the coin:
No one is often certain about the longer term of any coin. Monero does exactly what you'll do using Bitcoin, except, you'll transact without anyone knowing that it had been you on the Monero blockchain.
Privacy plays an important role altogether in our lives. Hence, a privacy-centered cryptocurrency like Monero features a very promising future ahead. Moreover, it's extremely easy for users to share the small print of their transactions also.
By providing the private view key of the Monero wallet, users can easily share the small print of any transaction with specific people. this will be extremely useful while handling official matters like tax filing, etc.
This also provides the governments with an assurance that a privacy-oriented cryptocurrency isn't getting used to fuel illegal activities.
By employing ASIC resistant algorithms, Monero is additionally striving towards a more decentralized ecosystem. Thus, bringing back true decentralization. By distributing the facility, the network is safer than other cryptocurrencies.
Additionally, with a very active core development team, Monero is destined for success. Albeit most of them like better to remain anonymous, the work that they are doing is clear for the entire world. To put an icing to the cake, Monero has a strong community following which is lifting this cryptocurrency to its success.
How is Monero better than other cryptocurrencies?
Almost all the favored cryptocurrencies are controlled by the few mining pools that have managed to accumulate an outsized chunk of mining power. This was made possible thanks to the introduction of the ASIC miners. albeit these miners look small, they're extremely powerful and at an equivalent time very expensive.
As only an upscale few can afford them, they hold the bulk of the hash power of the network. This completely destroys the thought of decentralization in cryptocurrencies.
Monero has the right solution to the present problem. By employing a mining algorithm that's ASIC resistant, Monero gives back the facility of mining to the overall public. With more people mining this cryptocurrency using GPUs, Monero has become more decentralized. Thus, Monero employs a way that's better than the other cryptocurrencies.
Should I invest in Monero?
Currently, the entire cryptocurrency market goes through a market phase. the costs of all the crypto assets are on a dip. This is often the proper time to shop for a number of the promising cryptocurrencies. However, you ought to be extremely careful as a number of the cryptocurrencies that don’t have an honest project might actually not make it out of this market.
User privacy will play a serious role in our future. As Monero is one among the only a few privacy-oriented cryptocurrencies out there, it'll undoubtedly flourish within the Bull Run which will come very soon. So, now would be the right time for you to take a position in some Monero and store it over an extended period of your time.
Privacy over the internet is our right. However, our privacy is being invaded regularly by the centralized system in place. With Monero’s arrival at the scene, we can expect privacy to be under our control once again. More privacy-oriented projects will soon join this bandwagon and in turn, create a better world for us to live in.
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