What is Monero?

What is Monero?

What is Monero?

There are over 1300 cryptocurrencies in the world struggling to achieve and maintain a respected place in the cryptocurrency market. That is why sometimes it is hard to predict which one will succeed, especially if you are new to the blockchain technology and digital money phenomena. You have probably heard about the big names in the game such as Bitcoin, Ethereum, Bitcoin Cash, Ripple or Litecoin. But there are coins with interesting features and possibilities worth looking into such as the privacy coin Monero (XMR).

Word monero comes from Esperanto and means a coin. It was released in 2014, but it definitely shined in 2017 due to the price surges and increased media attention. Monero coin adopted various advantageous solutions which were meant to further develop the security and financial freedom of the cryptocurrency network.

Monero is certainly one interesting cryptocurrency, and its potential has been recognized by artists. Mariah Carey, G-Eazy, Motorhead, Sia, Fall Out Boy, Lana del Rey are some among over 40 artists who got on the Project Coral Reef that enables fans to buy their merchandise and music in moneros. One of Monero’s core developers, Riccardo Spagni said that Project Coral Reef is a very important step towards mainstream adoption. That step followed a rise in monero price, which has been rising in the last couple of months.

What is it all about?

Monero is one of the most popular privacy cryptocurrencies. Although Bitcoin is considered to be private, it is actually pseudoanonymous. Since all transactions with corresponding addresses are recorded on the blockchain, which is a public ledger, it is possible to track down every transaction made to or from a certain address. Basically, someone with your address can find out how much bitcoins you’re storing and your transaction history. Monero uses another kind of protocol called CryptoNote which hides the connection between the sender and the receiver, as well as the transferred amounts.

Four fundamental technologies Monero uses are ring signatures, ring CT, Kovri and stealth addresses. These technologies provide complete anonymity due to concealing where the money comes from, who sends it and what amounts, as well as hiding IP addresses and geographical locations. This implies that moneros are fungible, which means that every unit of monero is the same because the transaction history is untraceable.

Monero Features

Monero Features

For example, bitcoins can be used for illegal purposes and land into an innocent users wallet. Since transaction history can be traced, these bitcoins become tainted and a bitcoin address can be blacklisted. Monero, on the other hand, cannot become tainted and therefore less valuable than another monero. That also means that it is impossible to make a rich list that would identify addresses with the greatest number of coins.

Some coins have incorporated privacy features to some degree, but anonymity and thus, financial freedom is one of monero’s core values.

Advantages of Monero

So, Monero’s biggest advantage is privacy. That entails complete control over your funds. Monero transactions are untraceable and unlinkable. Other notable traits include previously mentioned fungibility and decentralization.

Decentralization can be observed through ASIC resistance and equitability in mining. Monero mining encompasses using computational power to resolve mathematical problems, confirming the validity of transactions and securing the network. For their effort, miners are rewarded in monero coins.

Bitcoin miners figured out that the process of mining can be accelerated by using powerful machines specialized only in mining bitcoins, called ASICs (Application Specific Integrated Circuits). This led to the creation of bitcoin farms that centralized the process of mining and kicked out small miners that used their computers and graphics cards for mining.

Monero Advantages

Monero Advantages

Monero’s algorithm is ASIC resistant, which means you can mine at home using your computer because there is no ASIC solution superior to CPU or Graphics Card Solution. The system is easy-accessible for everyone and therefore, decentralized.

The monero mining will go until May 31, 2022, after which the system will give incentive for miners to keep mining through pumping 0.3 moneros per minute into the system.

Where can you get monero

You can acquire moneros by monero mining, joining a monero mining pool, buying a smart contract for cloud mining or buying the coins via cryptocurrency exchange. Since monero mining is feasible (and possibly lucrative unlike with bitcoin) with a regular computer, you may want to look into that option.

First, you will have to create your own monero wallet. You can download a desktop wallet from their official website, or you can login to web wallet MyMonero that is held by one the Monero’s developers, Riccardo Spagni. Monero wallet will store your data and keys which you will use to handle your monero coins.

As previously stated, mining is a process that involves your computer, or specialized machines to verify transactions and secure the network. To evaluate monero mining profitability, you can use a monero calculator, such as this one. You will have to input certain values like hashing power (speed of computing power to mine moneros), cost of the electricity and power consumption. The result will show you if your computational power is enough to make you a profit.

MyMonero Wallet

MyMonero Wallet

Another option is to join a mining pool. In mining pools, a lot of miners join their computational power to mine faster. That also means that the reward is smaller since all the participants from the pool share it.

One more alternative is to buy a smart contract for cloud mining, which essentially means you are renting computational power from a cloud mining company that mines instead of you. To calculate the profitability you can use the same calculator, but instead of electricity cost, you can enter your contract price, for example.

Monero on cryptocurrency exchanges

Lastly, you can buy your moneros at a cryptocurrency exchange, and that’s where we come in. Cryptocurrency exchanges are websites that connect buyers with sellers, and/or provide service of exchanging cryptocurrencies to fiat money and vice versa. On our website, you can find numerous cryptocurrency exchange reviews which are designed to help you find the website that suits you best. Take a look at what we say and you will find the right place to start trading in no time.

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Author: Ben Prescott

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