The crypto currency Monero was developed to create a decentralized means of payment. The goal was to circumvent certain problems of Bitcoin. That is why the developers of Monero focus on anonymity and arbitrary scalability. Like most crypto currencies, Monero is based on the block chain. All current Monero news, exchange rate developments and tips for buying Monero can be found on this page. Monero offers a special feature in the field of mining. This is usually associated with high electricity costs and the wear and tear of high-quality hardware. Therefore, mining coins is not lucrative for most users. The mining of Monero can be done with conventional hardware and is possible on any computer. This crypto-currency thus reduces the cost of the hardware and makes mining attractive for a larger group of people.
Where is it used?
Monero is interesting for all activities where anonymity plays an important role. One example are monero casinos, which you can see at this website. A lot of online gamblers have switched from casinos like the one mentioned at casinoBTC where you can only pay via BTC, because they are far less anonymous.
How does Monero work?
The currency Monero is clearly distinguished from well-known crypto currencies such as Bitcoin. Unlike most coins, Monero was developed from scratch. A proof-of-work algorithm checks the individual blocks of the block chain and adjusts them. The crypto currency, whose block time is two minutes, uses the CryptoNight hash algorithm. Compared to the well-known SHA, this requires less computing power. On the other hand, CryptoNight is rather memory intensive compared to SHA. The number of coins is not limited with Monero. The developers therefore rely on a currency without limit. The upper limit of coins is regulated by an algorithm, the block size is variable. Through this unlimited digging, Monero sets itself apart from currencies like Bitcoin. Bitcoin has a fixed block size and the number of coins is limited to 21 million BTC.
In the development phase the crypto currency was known as Bitmonero. The basis of the coin was the CryptoNote Whitepaper. Thus Monero is one of the first CryptoNote Coins. From this the essential characteristics of the currency result.
Who developed Monero?
The crypto currency Monero was released in April 2014. Since its inception, the coin has achieved lasting success and gained popularity in a very short time. Behind the currency is the company Monero Org. based in Denver, Colorado, USA. The Monero White Paper contains all essential information about the idea and the programming of the coin. It was written at about the same time as Monero was founded by Surae Noether. Behind the pseudonym hides the founder of the company Brandon Goodell. The development team consists of Martha Cummings and Diego Salazar. There is no information about other members. It is likely, however, that other people are actively shaping the currency.
What are the advantages and disadvantages of Monero?
Monero already offers some special features that make it unique due to its conception as an alternative to classic coins. For example, the currency attaches great importance to increased anonymity. Special attention is paid to general transactions. These are grouped together by the system and can thus be made anonymous. The algorithm makes a fast processing of all transfers possible. By using a peer-to-peer consensus network, each transaction is cryptographically secured, which guarantees a high level of security. Another much discussed special feature is the unlimited number of coins. However this characteristic is judged completely differently, which some users understand as advantage, consider others as disadvantageous. All in all, Monero appears to be a lucrative project where the advantages clearly outweigh the disadvantages. Accordingly, the success story has been constant since the coin was founded.
The future of Monero
The crypto currency Monero does not set an upper limit for coins. This allows the currency to increase steadily in the future. An annual increase of about 150,000 XMR is planned. Monero has stood out from the crowd since its foundation, which should continue to pay off in the future. The special potential of this crypto currency lies in its anonymity. Many users miss this in other currencies. Monero also has a fast and reliable algorithm. This is why Monero has always been able to remain among the top 20 crypto currencies in terms of market capitalization. User activity on the currency platform is consistently high. Currently there are no signs that this will change in the near future. With an investment you too can positively influence the future of Monero. On BitcoinMag you can learn, among other things, how to buy Monero with Paypal.
Crypto currencies have the advantage that they exist independently of central facilities and are therefore very secure. There are, however, representatives of this industry for whom the security of Bitcoin, Ethereum and Co. is not yet high enough. The crypto currency Monero has an increased focus on decentralization and privacy, and differs from the other Altcoins in some important features.
Decentralized Network
There are already many crypto-currencies, which give anonymity a high value. Monero goes here however still another step further: The currency exhibits some characteristics, which one misses with other Coins. Monero’s network is indeed decentralized, since all nodes are of equal value. There is no superclass of special nodes that have more control or influence on the system than other traffic points. Each node in the Monero network is also equally important. It does not matter how many tokens are held.
Fungibility of the currency
A value is fungible, if it can easily be replaced by another one. With Monero, the transaction history is not clear, since all Monero coins have the same identification. This means that the tokens cannot be marked or blacklisted compared to Bitcoin (What is Bitcoin?) or Ethereum. So there is no way to trace where the coins come from. Therefore, the coins cannot be traced by block chain monitoring or analysis.
The use of ring signatures means that all transactions in the Monero network cannot be traced, which also means that the amounts involved are not public. Linking a transaction to a specific user is almost impossible due to this system. However, it is possible to make the transaction public by using a “view key”. This is especially needed if the transaction should be traceable for tax reasons.
Monero stands for security and confidentiality
All transactions are actively encrypted in the Monero block chain (What is block chain?). Here the currency hardly differs from other crypto currencies. The wallet in which the Monero is stored is also strongly encrypted and corresponds to the technology standards of the industry. By using a decentralized peer-to-peer network, each transaction is secured by numerous users and is also encrypted in this way.
Unlike Bitcoin, the account balance of a wallet is not public and can only be viewed by people with a private key. A regular user of the Blockchain can therefore not track how much Monero is in another wallet. The crypto currency uses a nearly completely encrypted system through which the coins can be sent and received. This procedure guarantees that all transactions, purchases and sales remain private. By these methods there is also no “Rich List” as with other crypto currencies, where the wallets with the most coins are listed.
In addition to the already mentioned advantages of Monero, some important elements are added. Monero is more divisible, as it can be calculated precisely to up to 12 decimal places. At the current price of the currency of about 100 €, this still plays a minor role, but it could prove helpful in the future. Besides this fact, the algorithm of the crypto currency is also suitable for mining by CPU, RAM or GPU. This leads to the fact that mining is still largely carried out by private persons and that there is no power centring with a few mining providers.
Summary
- Decentralized Peer-to-Peer Network
- Transactions not traceable
- Nearly complete system
- Accounts not publicly visible
- Maximum security and confidentiality
Bitcoin has an upper limit that will most likely be reached in 2130. After 21 million Bitcoins have been created, no more coins can be added. Monero has no upper limit, unlike many other crypto currencies. By 2040, Monero will already have exceeded the limit of Bitcoin. Having no upper limit can be both an advantage and a disadvantage. If a Bitcoin is lost, these coins can no longer be saved. This can happen if the user dies or forgets the password to his wallet. With Monero this would not be a problem, since the quantity can be adjusted at any time. However, if too many coins are distributed, it can lead to a strong inflation of the currency. The sophisticated algorithm of Monero should prevent this for years. Current XMR rate.