Monero (XMR) is a digital currency very akin to Bitcoin, but it offers a higher level of security, privacy, and untraceable currency system for users and their transactions. It gets really impressive and segregates itself from a lot of other traditional cryptocurrencies, also designed as a medium of exchange.
The Monero is not developing just because of attention from the black market, but also because of the large number of people not fond of being watched by governments, corporations, and hackers.
Here, we’ve designed this guide to understand it more clearly and to know everything about Monero. Let’s see what makes XMR so special-
What is Monero?
Monero is one of the popular cryptocurrencies with a focus on private and censorship-resistant transactions. It uses cryptography to guard sending and receiving addresses, as well as transacted amounts.
Monero (XMR) is electronic cash that allows confidential and fast, inexpensive payments to and from anywhere in the world.
Moreover, the Monero ledger doesn’t record the actual stealth addresses of parties to transactions, unlike Blockchain. In this ledger, the one-time created address is recorded and not linked to the actual addresses of the parties. All new transactions are grouped up with some other transactions that occur among unrelated parties.
The origins of Monero
In July 2012, the first real-life implementation of CryptoNote- Bytecoin, was launched. CryptoNote is the application layer protocol that supports various decentralized currencies. While it is similar to the application layer which runs bitcoin in many features, but these two differ from each other.
While bytecoin had insurance, people noticed that a lot of untransparent things were going on and that 80% of the coins were already published. Therefore, it was decided that the bytecoin blockchain will be forked and in the new blockchain, coins will be called Bitmonero. It was ultimately renamed Monero meaning “coin” in Esperanto.
Monero is managed by a group of 7 developers, in which 5 have chosen to remain anonymous while two have come out openly in public.
** Image courtesy: Coinsutra
Special features of Monero
CryptoNote gives some unique properties that make it so hot and demand. Let’s check it out.
With Monero you have complete control over your currency. Your currency is yours that means you’re responsible for your money. Because it enables identity privacy so, no one will be able to see what you are spending your money on.
It is Fungible:
Fungibility is defined as- it is interchangeability of goods or assets with individual goods or assets of the same type. Let’s take an example to understand more clearly.
Suppose you sold a completely legal item on a platform like Open Bazaar and you received Bitcoin as payment. However, it points out that the Bitcoin you received was previously used in a drug deal. For you, that might not be an issue when you try to spend it somewhere else. The person receiving it could decide that they don’t want this type of tainted coins.
With this advanced privacy feature of Monero, no one can tell which transactions each coin was actually involved in. There are no transaction records associated with any Monero coins. This indicates they are fungible.
Scalability means how well the network can grow in relation to demand. We know Bitcoin have scalability issue in the crypto circles the past few years. It was created with a self-imposed 1 Mb block size limit. But in its early developments bitcoin didn’t have any block size limit, however, in order to block spam transactions, the size limit was imposed.
On the other hand, Monero has no “pre-set” size limit, but this also means that malicious miners can jam up the system with disproportionately large blocks. A block reward penalty is built into the system to prevent this.
In its early the median size of the last 100 blocks (M100). Now, every new mined block has a particular size which is called “NBS” aka New Block Size. If NBS > [10%, 50%, 80%, 100%] M100, the block reward gets reduced by [1%, 25%, 64%, 100%]. Generally, blocks greater than 2*M100 are not allowed, and blocks less than 60KB are always free of any block reward penalties.
ASIC (Application Specific Integrated Circuit) Resistant:
CryptoNote system makes Monero distinctly different from Bitcoin. The hashing algorithm used in CryptoNote based system is called CryptoNight that was created to build a fairer and more decentralized currency system.
CryptoNight uses a number of advanced features to make the production of ASIC chips suitable for mining Monero unprofitable. The specifics are a little complex but Monero can be profitably mined using both CPUs and GPUs. Hence, the currency has the potential to be even more decentralized than Bitcoin.
Monero uses a different system of keys. Bitcoin and Ethereum have just one pair of keys – a public key and a private key. On the other hand, Monero uses a public view key, a private view key, and both public and private spend key.
The public view key is used to generate stealth public address and a private view key is needed for verifying the transactions. To verify the signature on a transaction a public spend key is needed and private spend keys are used to create outgoing transactions.
There is no fixed number of Monero tokens for mining, unlike Bitcoin. Initially, there will be 18.4 million coins, following this the supply will increase by around 0.87% in its first year.
This percentage drops each year. It’s expected that it will take 117 years to reach double the initial distribution. At the time of writing, there are 15,054,759 XMR in circulation and each Monero is worth $114.83.
Monero vs Bitcoin
|Bitcoin (BTC)||Monero (XMR)|
|Launch date||3 January 2009||18 April 2014|
|Notable team members||Satoshi Nakamoto||Unknown|
|Max. number of tokens||21 million||No fixed limit.|
|Token uses||Digital asset||Peer-to-peer digital currency|
|Supported language(s)||C++||C++, C, CMake, Objective-C, Shell, Python & more|
|Consensus algorithm||Proof of work||Proof of work|
|Buy token||Buy bitcoin||Buy Monero|
** Table courtesy: Finder
The pros and cons of Monero
- One of the best privacy features.
- Transactions are not linkable and traceable.
- Dynamically scalable and no block limit.
- It is selectively transparent that means it’s possible to choose who can see your transactions.
- A great team of committed developers works on the project.
- Even though Monero was made ASIC resistant, there is still a large degree of centralization of miners on Monero (~43% of the hashrate is controlled by just three pools)
- Only a few wallets that have been developed for Monero.
- It is harder to develop applications that interact with Monero’s blockchain.
- Less secure than other cryptocurrencies.
How to store Moneros?
To store Moneros, you’ll need a Monero wallet. For this, you can go to mymonero.com
First, click on Create an Account button
- Write down your private login key.
- In the next step, enter your private login key to get the public address.
- Well done! You have successfully created a storage account for Monero. Be careful to never reveal your private login key. In case, you forget your key, then click on Account button and then click on Review Login Key. Here, we’re providing you a list of best Monero wallets. If you want to know what is cryptocurrency wallets and how they work, you can learn from our guide on best crypto-wallets.
Best Monero wallets
Where to Buy Monero?
There are some best Monero exchanges to buy or sell Monero cryptocurrency. Let’s check it out.
|Name||Deposit methods||Fiat Currencies||Supported Cryptocurrencies||Buy|
|BINANCE||Cryptocurrency||–||BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more||Go to site|
|USD||BTC, BCH, DASH, ETC, ETH, LTC, XRP, MIOTA, XLM, ADA, NEO, EOS, LCC, BNB||Go to site|
|USD, EUR||BTC, BCH, BTG, IQ, TRX, GNT, AVT, DASH, DATA, EDO, EOS, ETC, ETH, LTC, MIOTA, NEO, OMG, QTUM, SAN, USDT, XMR, XRP, BAT, ZRX, FUN, MANA, SPANK, TNB, RLC, RCN, REP, ELF, AID, SNGLS, SNT, QASH, YOYO, MITH, ETP, XTZ, CNN, BOX, GOT, TKN, UTN||Go to site|
|COINTREE||Cryptocurrency||–||BTC, ETH, BCH, EOS, MIOTA, ZRX, AE, AION, REP, DGD, ICX, IOST, OMG, PPT, SNT, TRX, VET, ZIL, ZEC, LSK, DCR, SC, STEEM, GNT, DGB, BAT, KMD, BTG, ADA, DASH, ETC, OIST, LTC, XMR, XEM, NEO, ONT, QTUM, XRP||Go to site|
Bank transfer (SEPA)
|USD, GBP, AUD, EUR, INR, ARS, BRL, CAD, CNY. NZD, DKK, HKD, ILS, JPY, KES, CHF, MXN, NOK, PHP, PLN, SGD, SEK, AED||BTC, LTC, ETH, BCH, BAT, DASH, BTG, XRP, VOX||Go to site|
|USD, EUR||BTC, ETH||Go to site|
Bank transfer (SEPA)
|USD, EUR||BTC, ETH, ETC, BCH, LTC, ADA, QTUM, XRP||Go to site|
Bank transfer (SEPA)
|USD, EUR, RUB, GBP||BTC, DASH, ETH, XRP, ZEC, XLM||Go to site|
|USD, EUR, RUB||BTC, BTG, BURST, BYC, CANN, CFI, CLAM, CLOAK, CLUB, COVAL, CPC, CRB, CRW, CURE, CVC, DASH, DCR, DCT, DGB, DMD, DNT, DOGE, OMG & 140+ more||Go to site|
|USD||BTC, BCH, MIOTA, XVG, NEO, ADA, XRP, TRX, ONT, ZIL, GAS, LTC, ZRX, QTUM, ETH, ETC, VET, ICX & 300+ more||Go to site|
Monero (XMR) is a CryptoNote blockchain based cryptocurrency, it relies on Ring Signatures in order to provide privacy when making a transaction. It uses Proof of Work to mine Monero, in which miners requires computational power from a CPU or GPU. Due to unavailability of ASICs, anyone can mine Monero with a computer.
In order to mine, you need to think about is if you are going to mine solo or pool. Here, we’re recommending you to join a pool mining. Because as a beginner, it is more profitable. However, you can calculate your profitability with Monero profitability calculator.
Note: Information contained in this guide is not an offer or solicitation to buy, hold, or sell any security. We’re not financial advisors and are simply providing information for educational purposes. Investing in ICO involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment.
Investors should consult their financial advisor before investing in ICOs. Furthermore, the SEC has warned investors residing in the United States and other jurisdictions that ICOs may constitute securities.
Hope! this guide helped you to understand what is Monero and also, we’ve discussed the best Monero wallets and Monero exchanges to buy or sell Monero coins.
If you have any query, feel free to tell us in the comment section. We are happy to help you.