Table of Contents
What is Monero?
Monero is a cryptocurrency that focusses on private transactions that are censorship restricted and openly verifiable by any individual across the world. It uses cryptography to protect and encrypt transaction amounts as well as sending and receiving addresses. To make the currency what it is today, over 240 developers had to be a part of the project, 30 full-time developers and a good number of experts. Monero, however, is not a corporation and it was not created to stand as a company like others. Rather, it is funded by the community by cryptography experts across the entire world. What this guarantee is that it is sustainable over time and is not constrained by one jurisdiction or country. They have no multiple days holding period, and you can rest assured that there are no risks of being defrauded. Privacy is a big deal for them and for that, they make use of a tough protocol that is known as CryptoNote. You are, thus, saved from external factors. It is a fungible cryptocurrency, and so it focuses on making transactions anonymous. Also, it is an open-source cryptocurrency, and it uses a public ledger to record transactions. It certainly is and even promises to be one of the coolest cryptocurrencies till date.
History of Monero
The history of Monero is as simple as its brand. The company was launched sometime in the second quarter of last year. It has grown and made really large improvements since it first hit the market. It was not just an improvement from other cryptocurrencies, but even its original platforms. Areas like privacy and security are where they have largely focused on. Also, they have given ease of use as well as the overall efficiency of the virtual currency a little extra though. The currency was originally launched by a Bitcointalk forum user only known as
and under the name BitMonero (combination of (like Bitcoin) and Monero (also meaning “coin” in Esperanto). Since then, they have experienced rapid growth in different metrics ranging from market capitalization to the volume in transaction volume in the year 2016. Its blockchain was moved to a different database structure to give room for greater efficiency and flexibility. Finally, in January last year, the privacy of Monero and its many transacts was even more increased by the adoption of Bitcoin top developer, Gregory Maxwell’s and his algorithm where private transactions hid their specific amounts.
5 Distinct Features of Monero
Even though there are many different types of cryptocurrencies, this one has its distinct features, and they entirely make it what it is. Here are some of them:
1) It’s Security
Monero has a very strong form of security, and even the wallets are secured by cryptographic math that is not reversible. All its transactions are secured cryptographically using very resilient encryption tools possible. It is a decentralized cryptocurrency as a very wide network of users put it to use. You get the golden opportunity to secure your cryptocurrency yourself and not third parties. Also, transactions are confirmed by the distributed consensus before being kept on the blockchain.
One unique feature of the cryptocurrency is what is known as Fungibility and adoption. As it has an untraceable nature, all the coins are distinguishable from one another; this is even though they are regarded as the exact in the eyes of merchants or traders. It is the fungibility that ensures that some of the coins are not rejected by users as old. In essence, all currencies can be substitutable with another. Also, since the past transactions of individual coins are recorded on the blockchain, the coins that have been associated with theft and other kinds of criminal issues can then be rejected. More people are becoming part of the cryptocurrency – this is due to popular demand.
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3) It is also very private
You also enjoy privacy with Moneo as they take it extremely seriously. All users need to be able to trust it with the way they spend and the general pattern. They have to be able to protect the interest of their clients even if it is in an open court and the privacy has to be accessible to the users of the virtual currency. Also, it uses ring signatures, as well as stealth addresses to change the transactions amount and origins. Its privacy is focused as its key selling point, so nobody else can see your balance; at least not just by looking at the blockchain. Hence, it provides the benefits of a decentralized cryptocurrency that you can think of.
4) It is decentralized
The cryptocurrency is decentralized, and it even seeks to make it even more so. What this means is that you don’t have to trust anybody else on the network. No team or group of people handle it – just you. Its decisions for development are entirely clear and available to the public for discussion. On their official website, they also show clearly that “An accessible “Proof of Work” algorithm makes it easy to mine it on normal computers, which makes it more difficult for someone to purchase a large amount of mining power.” In all sense, they deploy a lot of effort to ensure that you are truly capable of standing alone.
5) It is anonymous and cannot be traced
With Moneo, you can also hide where all your money comes from so nobody else has access to it. This it does by using what it calls ring signatures. Ring signatures basically offer transaction mixing, so there is no one traceable route to your information. They are digital signatures that are easily performed by members of the rings or group. Every single signature is an eligible one. Senders have the opportunity to be only ones seeing it, and this is also one of the things that allow you enjoy privacy with the currency. Beyond ring signatures, it uses RingCT and stealth addresses. The incoming transaction comes as a group of different transactions having multiple senders. This is its form of encryption.