Monero Coin – the Way to Make Cryptocurrency Private
Monero received the status of the most popular privacy-focused cryptocurrency. It’s not hard to get that Monero’s selling point became its anonymity. Even though the XMR coin became a thing in the darknet society, its privacy technologies are quite impressive.
Monero was the most productive coin of 2017, and now we are watching the decline of the whole market. In this article, we’ll answer such questions as what’s special in Monero cryptocurrency and is XMR is still good investment. Keep reading!
Monero Blockchain and XMR Coin
Monero (XMR) is a decentralized, open-source cryptocurrency that is popular with its high privacy level. The cryptocurrency is a brainchild of the bitcointalk user thankful_for_today. XMR coin is one of the oldest digital currencies in the market. It was released in April 2014. There are two known developers (of seven existing). They are Riccardo Spagni and David Latapie.
Monero stands for ‘coin’ in Esperanto. The creator used Bytecoin and CryptoNote code base and made Monero from scratch. By the way, Bytecoin was the first digital currency that used CryptoNote technology. It combines several keys in a single transaction, so it becomes nearly impossible to track the sender and the receiver.
All improvements were implemented in privacy and security direction. The main aim was to reduce block time. Initially, it was only 60 seconds, but now the block is generated every 2 minutes. Since thankful_for_today disappeared, Johnny Mnemonic began to develop XMR coin.
Great privacy features made XMR coin the rising star of 2016. It grew faster than any other cryptocurrency. The privacy feature was improved more in 2017. By the beginning of 2018, the XMR rate was breaking the record in its price.
The developers implemented a confidential transaction algorithm which was made by Bitcoin Core developer Gregory Maxwell. The technologies behind Monero’s anonymity are Ring Confidential Transactions (RingCT) and Stealth Address. Ring signatures mix a user’s account keys with public keys obtained from Monero’s blockchain. A stealth address is a randomly generated one-time address that is created for each transaction.
However, there is another side of cryptocurrency anonymity. Monero became one of the leading crypto coins in darknet society. Due to the particular transaction scheme, it was easy to hide the purpose of the money. Here is an explanation of Monero’s transaction in comparison with Bitcoin.
Transaction in Bitcoin
Transaction in Monero
Alice sent 1 BTC to Bob
Whoever sent # XMR to Whoever
As you can see, it’s easy to send XMR coins and to stay anonymous. That helps darknet users hide their money and buy stolen credit cards, drugs, and weapons. This fact can characterize Monero as a fungible coin. Fungibility means that no one can tell which transaction each coin was involved in. It’s impossible to link XMR coin to any crime (or even legal) transaction.
One more Monero distinct feature is its scalability. The term itself means the opportunity of how well the network can grow in relation to demand. For instance, Bitcoin has a 1MB block-size limit. In Monero, there is no pre-set block size. The blockchain fits the circumstances and the requirements of the network in a particular period of time. This makes Monero blockchain extremely scalable and helps to provide more transactions than in Bitcoin.
Monero (XMR) Mining
Monero blockchain is based on a Proof-of-Work consensus algorithm. The network uses RandomX. Previously, Monero used the CryptoNight mining algorithm. The new, RandomX, was introduced in November 2019 to cripple the ASIC mechanism and improve CPUs’ efficiency.
Let’s sum up some significant blockchain characteristics.
The average transaction fee is 0.00031 XMR
Block time is up to 2 minutes (avg. 1 minute)
Block size is 68.140 KBytes (in Oct 2020)
The average number of blocks per day is 32
The reward per mined block is 1.37 + 0.00908 XMR
Blockchain size is 63.75 GB
A recent halving took place on 5th November 2019. It was the 4th Halving (Reward=1.90 XMR/block). The 5th and the last halving will be conducted on 24th March, 2021. In June 2022, the tail emission will start so that the reward will remain 0.6 XMR forever.
Monero developers were always against the monopoly of ASIC hardware devices. It is very expensive and makes mining the way for the privileged class of people. Since Monero treats its community with respect, the team gives an opportunity to choose hardware from affordable ones. By the way, the Monero community is primarily focused on optimizing the XMR code together with the developers.
Monero Transaction Features
As we already said, Monero is famous for its private transaction system, which is provided by the ring signatures and stealth address. Let’s focus on technology.
The Ring Signatures maintain Monero privacy. One of the members of the list of potential signatories signed the message but is not disclosed by whom exactly. In this case, the keys of all members of the list and the private key of the signatory itself are used.
One of the distinct differences of Monero is in its key function. The network has multiple keys:
Public view key and private view key
Public spend key and private spend key
The user generates a public view key as a public address where the cryptocurrency can be received. The receiver uses a private view key to scan the blockchain in order to find the funds sent to him.
Public spend key participates in a ring transaction. It is also used to verify the signature of a key image. The private spend key helps create the key, enabling the user to implement a transaction.
Monero uses a unique protocol that creates one-time addresses. This allows you to hide information about the payee, the balance of his account.
Another important feature of Monero is the use of stealth addresses. Thanks to this method, the sender can receive the recipient public key and convert it into a one-off address. The recipient can publish one address and receive an unlimited number of public payments, which will be impossible to track.
The Monero team publishes plans and completed points regularly. The roadmap is listed on the website. We’ll show some highlights from that scroll. Here is a plan of Monero developers:
Onion address for Getmonero.org
Wallet scanning speedups (support for supercop ASM)
Concise linkable spontaneous anonymous group (CLSAG) signatures
Triptych: logarithmic-sized linkable ring signatures with applications
Kastelo: open-source hardware wallet
Second-layer solutions for speed and scalability
Monero (XMR) Wallets
Monero cryptocurrency is all about privacy. That’s why users need to choose the most secure wallets to store XMR assets. In 2019, Ledger Nano hardware wallet released the version for Monero. The models X and S are available to save the funds. This wallet is claimed to be one of the most secure. Moreover, Ledger Nano X is the only wallet that works with iOS via Bluetooth.
If you prefer to store your XMR coins in the hot wallet on your device, there are some wallets available for iOS and Android. For instance, you can use Edge mobile wallet, Cake Wallet, and Monerujo Wallet (for Android).
You can also use a desktop wallet. Monero team developed a Monero GUI wallet to store your XMR coins more securely. If you want to create a paper wallet, you can generate a key offline.
Where to Trade Monero (XMR)
Since XMR crypto coin is a very popular option to trade, there is a wide range of exchanges. Let’s overview the most tradable pairs on the market. Note that there are more trading platforms to use. We’ve got the list of the most reliable liquidity providers.
By the way, you can buy or swap your coins for XMR easily. Check out our cross-rates and find the best option available on the market.
Monero development stays on three pillars of conservative crypto: fungibility, privacy, and decentralization. Monero’s team is capable and strong to hold their ground. The coin is not a beginner-friendly one; that’s why it’s not widely adopted and accepted.
It will be interesting for us (and hope for you) to follow the future of Monero. The development team will achieve an even more confidential ecosystem. XMR cryptocurrency is now in quite a bullish trend, so we’ll see if the coin will gain the rate numbers of 2018.