Founded in 2014, Monero goal is simple: to promote private and anonymous transactions, i.e. to prevent the traceability of transactions with coins, especially Bitcoin. In other words, even though it is widely believed that a person’s identity can be obscured on the BTC network, it is often very easy to trace payments back to their source because blockchains are visible. XMR, on the other hand, uses strong cryptography to hide both the sender and the recipient.
Security And Privacy Are Of Paramount Importance
The main goals of the Monero development team are privacy and security, followed by usability and performance. It aims to protect all users, regardless of their technical skill level.
Overall, XMR aims to enable fast, cheap, and uncensored payments.
Who Founded The Cryptocurrency Monero?
Seven programmers were involved in the original development of Monero, five of whom wished to remain anonymous. Satoshi Nakamoto, the inventor of Bitcoin, is also believed to have developed XMR.
XMR originated in Bytecoin, a decentralized cryptocurrency created in 2012 with privacy in mind. A member of the Bitcointalk forum, known only as thankful for today, forked BCN’s codebase two years later, which led to the development of Monero. They took matters into their own hands after proposing “controversial changes” to Bytecoin that were rejected by the community.
Hundreds of programmers are expected to contribute to XMR over the years.
What Makes Monero So Different?
Users should not view privacy-oriented cryptocurrencies as interchangeable or equivalent services, as not all offer anonymity in the same way. XMR, for example, should be viewed as a technology that, when implemented correctly, hides user data in the blockchain and makes it harder to identify users.
How Much Is Worth?
Most Monero users value the privacy and anonymity that Monero offers. It allows consumers to make bitcoin transactions at any time, for any reason, without fear of being tracked by the government, hackers, or other outsiders. Since XMR currencies are untraceable, companies cannot blacklist them for illegal transactions.
In addition to its use as a medium of exchange, Monero could be valuable to investors who believe that the need for privacy will increase in the future and could drive up the price and market capitalization of XMR.
Use of Monero
RandomX, a proof-of-work method, is used to verify transactions on Monero. This method was introduced in November 2019 to replace the CryptoNightR algorithm. Both are designed to be based on ASIC analysis.
Monero can be mined on consumer-grade hardware such as x86, x86-64, ARM, and GPUs, a decision based on Monero’s objection to the mining intensity in ASIC mining. This has also contributed to Monero’s popularity with non-consensual malware-based miners.
P2Pool is a mining pool that runs on a sidechain and gives participants full control over their nodes, similar to solo mining offerings. It was developed by the Monero team in October 2021.
How Is Monero Different From Others?
Monero has a number of features. One of its main goals is to achieve the highest possible level of decentralization, which means that a user does not have to trust any other network participant.
Several special features guarantee privacy. While XMR is fully fungible, each bitcoin in circulation has a unique serial number that can be used to track its use. By default, information about the sender, the recipient, and the amount of cryptocurrency sent is hidden. Monero’s proponents claim that this gives Monero an advantage over competing for privacy coins like Zcash, which are “selectively transparent.”
The use of ring signatures ensures that data remains hidden. This involves selecting previous transaction outputs from the blockchain and using them as decoys so that outsiders cannot identify the person signing the document. Ian can further complicate the transfer of 200 XMR to Susan by splitting the amount into random parts.
The secret addresses are generated once for each transaction to ensure that the transactions cannot be linked.
All of these features have led to XMR being increasingly used as an alternative to Bitcoin for illicit transactions, especially in darknet markets. Governments around the world, particularly in the United States, have offered tens of thousands of dollars to anyone who can decrypt Monero.
How Many Monero (Xmr) Coins Are Currently In Circulation?
Neither XMR tokens nor pre-defined XMR tokens have ever been sold, making Monero a very rare cryptocurrency. At the time of writing, there were a total of 18,188,773.23 XMR in circulation.
This cryptocurrency is designed to resist the application-specific integrated circuits normally used for Bitcoin mining. In theory, this means that standard computer hardware should be able to mine XMR.
On May 31, 2022, it is estimated that there will be 18.4 million XMR in circulation, which would be the upper limit. In the future, miners will be compensated through “queue emissions,” which add a small amount of XMR to the system every 60 seconds. This method is considered more efficient than transaction fees.
Is The Monero Network Secure?
The network uses CryptoNight, a proof-of-work-based consensus protocol, to prevent centralization, which is one of Monero’s main goals. This prevents large-scale mining from becoming the dominant force.
Where Can I Buy Monero (Xmr)?
As a privacy-oriented cryptocurrency, XMR is not listed on some major exchanges. For example, while XMR can be purchased on Binance, it is not supported by Coinbase. As a result, you may need to convert your fiat money to bitcoin and trade on a smaller platform.
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