What is Monoro (XMR)?
Monero (XMR) was one of the first cryptocurrencies to show real advances in privacy and fungibility over available alternatives.
Its main differentiator was its ability to allow users to send and receive transactions without making that data available to anyone looking at their blockchain.
As such, Monero is often classified with other privacy cryptocurrencies such as Zcash (ZEC), which seek to address the privacy shortcomings of Bitcoin (BTC). (At the Bitcoin, transactions reveal the amount exchanged, as well as sender and recipient data by default.)
This, in turn, allows bitcoins to be tracked, making them less fungible as companies can identify and blacklist coins involved in suspected criminal ventures, for example.
However, while projects like Zcash enjoyed media fanfare and the support of venture capitalists, Monero's origins are more comparable to Bitcoin, involving a small online technology community that quietly grew over time as the project gained credibility and market share.
But Monero also distinguished himself in areas other than privacy.
For example, Monero's software is scheduled to be updated every six months, a regular schedule that has helped him add new features more aggressively without much controversy.
This means that Monero has been able to continue to introduce cryptographic advances such as secret addresses (which allow users to create unique addresses) and confidential transactions (which hide transaction values).
Given his willingness to pioneer such advances, Monero continues to attract the interest of cryptographers and researchers seeking to push the boundaries of what's possible in cryptocurrency.
Who Created Monero?
Monero's origins are among the most unusual among major cryptocurrencies, involving unknown developers, allegations of fraud and, ultimately, various rebrandings of the project.
The story begins in 2013 with the release of the white paper CryptoNote, authored by developer Nicolas van Saberhagen.
The article would get the attention of the crypto community, with renowned Bitcoin developers Gregory Maxwell and Andrew Poelstra creating their own work on its implications for cryptocurrencies.
However, initially this did not translate into success for their pioneering ideas.
Soon after, CryptoNote was used to create a new criptomoeda called “Bytecoin”, although the project would collapse under allegations that its developers had tampered with its supply.
The code base that would form the basis of Monero was later released in April 2014 as “Bitmonero”. The developers, however, had to fork again amidst the controversy, shortening the name of the cryptocurrency to Monero, derived from the word “currency”.
How does Monero work?
In addition to its privacy features, Monero works similarly to other major cryptocurrencies, using proof-of-work mining to control XMR emission and to encourage miners to add blocks to the blockchain. New blocks are added approximately every two minutes.
Notably, however, enthusiasts may find mining XMR easier than other cryptocurrencies, as the algorithm that governs this process is designed to guard against specialized hardware.
This means that users can generate XMR when mining with a laptop (CPU) or graphics card (GPU), low-cost forms of hardware that are more widely available.
What Makes Monero Private?
Not all privacy cryptocurrencies achieve privacy in the same way and, as a result, users should not consider them equal or interchangeable offerings.
XMR, for example, should be seen as a tool that, when used correctly, obscures user data in the blockchain, making it difficult to track your users.
The technology that makes this obfuscation possible, Monero uses Ring signatures to blend the digital signature of the individual who makes an XMR transaction with the signatures of other users before writing it to the blockchain.
That way, if you look at the data, it looks like the transaction was submitted by any of the signatories.
Over the years, Monero has experimented with changing the number of signatures involved in this mixing process, simultaneously, allowing users to specify a desired number.
In 2019, however, a standard Monero transaction was defined, adding 10 signatures to each transaction group and combining 11 signatures in total.
Another feature that contributes to Monero's privacy is Stealth Addresses, which allows users to publish an address that automatically creates multiple unique accounts for each transaction.
Using a secret “view key”, the owner can then identify their received funds while their wallet can scan the blockchain to identify any transactions with that key.
Launched in 2017, Ring Confidential Transactions hides the amount users exchange in transactions recorded on the blockchain.
In fact, RingCT makes transactions that can have many entries and exits, preserving anonymity and protecting against double spend.
Why Does Monero (XMR) Have Value?
Investors should note that Monero is also rare among major cryptocurrencies as it does not have a fixed supply. This means that, unlike Bitcoin, which guarantees that only 21 million bitcoins will be mined, Monero is programmed to continually create new XMRs.
According to Monero's software rules, the rewards for new blocks will never drop to zero. (After May 2022, block rewards are scheduled to be fixed at 0,6 XMR per block.)
At that time, about 18,4 million XMRs are expected to have been issued.
However, as the provision of XMR is known and users can prove ownership of their coins, XMR can serve as a form of value in a similar way to BTC.
Still, investors and traders should note that the XMR money supply will continue to grow, meaning it may not be as well suited to acting as a savings mechanism.
Price of Monoro XRM?
Why Use Monero (XMR)?
The big reason for learning to use Monero could be your privacy. Since transactions cannot be easily tracked on your blockchain, users can more freely exercise their ability to send and accept encryption on all types of transactions.
In addition to being safe and untraceable, this makes XMR fungible. This means that companies cannot reject XMR because they may be involved in questionable activities.
Likewise, investors who believe that cryptocurrency users will eventually demand more privacy may find it a valuable addition to their portfolio.
In addition, XMR can be attractive to any user who wants to push the boundaries of cryptocurrency cryptography, paving the way for cash systems that allow individuals around the world to save and pay without being oppressed.
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