Monero has the third-largest community, just with Ethereum and Bitcoin being ahead. If you have not yet been acquainted with Monero’s features, you might wonder why it is so popular. The answer is simple: Monero is one of the most private cryptocurrencies ever created.
In this article, we will cover the technology- and mining-related questions. Also, we will try to unravel whether it is true that Monero is better than Bitcoin. Are you intrigued? Then, let’s dive into the world of the most privacy-focused cryptocurrency.
Table of Contents
Who Created Monero?
The Monero protocol’s conception is rooted in CryptoNote, a cryptography protocol that was first described in the white paper by Nicolas van Saberhagen. By the way, this name might be as real as Satoshi Nakamoto’s one. We still don’t know who this mysterious Mr. Saberhagen is.
As a cryptocurrency, Monero first made its appearance in 2014, when a Bitcoin user under the nickname “thankful_for_today” made up Saberhagen’s ideas into a cryptocurrency. At first, it was dubbed Bitmonero. A couple of weeks after the Bitmonero launch, its creator ignored all the offers and comments on the newly minted coin and did what he actually wanted. What were the claims?
- The block reward was steeper than what everyone was expecting.
- The creator moved forward with one-minute block times despite everyone’s concerns about the increase of orphan blocks.
- The tail emission concern was not resolved in the code with the subsequent updates.
That’s why the community decided to fork the coin. The newly created Monero version has a great team and a good PR campaign. This is what triggered thankful_for_today to disappear. The naming is marvelous, though. Monero means “coin” in Esperanto.
How Does Monero Work?
Monero is an open-source and privacy-oriented cryptocurrency with an XMR ticker. Behind the digital currency lies an open ledger that makes the network transparent — but not in the case of Monero.
The current Monero protocol is called CryptoNote. It was created to make all the transaction details as well as the sender and recipient information untraceable. That’s how Monero supports the concept of decentralization and its anonymity principles. That’s how the network makes all people equal.
The protocol is built in such a sophisticated manner that it’s impossible to trace any transaction details. Such features make the Monero network a safer space for its participants and eliminate the risk of being rejected or blacklisted by others.
The central pillar of Monero’s technology is based on Ring Signatures. It mixes the digital signature of the individual who is making an XMR transaction with the other ten users’ signatures before recording it on the blockchain. Now, there are eleven signatures added to every transaction.
There is actually more to say about Monero’s privacy improvements throughout the year. So, let’s go further.
How Does Monero Improve Privacy?
Monero developers use some tricks in their technology to make privacy its essential feature. All the transaction details, such as an address, transaction amount, etc., are obfuscated. That’s the reason why cypherpunks, crypto-anarchists, and privacy adherents love Monero so much.
Now, let’s dot the i’s and cross the t’s on what features make Monero so incredibly anonymous:
- In 2017, the developers introduced Ring Confidential transactions. Since then, the transaction amount has been hidden.
- Stealth address is used in transactions to hide the parties involved in the process. It operates by creating a one-time address for every transaction, even if the sender and the recipient remain the same.
- Dandelion++ is a protocol that obscures the IP address of devices that produce the transactions.
What Algorithm Does Monero Use?
Transactions in Monero are validated through mining based on the RandomX proof-of-work algorithm, which issues new coins to miners.
Why Should I Use XMR?
As we have already mentioned, XMR is an excellent coin for those concerned about privacy. However, there is another side to cryptocurrency anonymity. Monero has become one of the leading crypto coins in the darknet society. Due to the particular transaction scheme, it is easy to hide the payment purpose when using XMR.
So, when making XMR transactions, users remain completely 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 coins to any criminal (or even legal) transaction.
How to Mine Monero
To validate transactions on the network, Monero uses a PoW algorithm called RandomX. It was introduced in November 2019 and replaced the previous one, CryptoNight.
What equipment should you use to mine XMR coins successfully? The first thing to mention is that RandomX is ASIC-resistant. So, x86, x86-64, ARM, and GPUs are suitable for Monero mining. Learn more about the Monero mining equipment in the corresponding article.
- Block reward: 1.16 XMR
- Block time: 2 minutes
By the way, according to Monero’s software rules, the block reward will never drop to zero. In May 2022, the last halving will occur, so block rewards will be fixed at 0.6 XMR.
How Much Monero Can I Mine in a Day?
This figure is not constant, as you can understand. If we consider that a block is mined every 2 minutes, about 720 blocks per day are mined. Check out the current Monero network hashrate and the block reward and fill the gaps according to this formula:
You will get the hashes per second that will help you choose the appropriate hardware for profitable mining and gauge the machine’s speed.
How Is Monero Different from Bitcoin?
Here is a comparison of Bitcoin and Monero in the table below:
|Year of creation||2009||2014|
|Block time||10 minutes||2 minutes|
|Block reward||6.25 BTC||1.16 XMR|
Is Monero Better than Bitcoin?
Everyone has their own taste, so discussing whether one currency is better than another is very subjective by its nature. Monero is just different from Bitcoin. But still, they have some similarities. For example, both coins can be mined using their own proof-of-work algorithms.
How Do I Buy Monero?
Monero is a cryptocurrency that offers its users improved privacy and anonymity. So, no wonder the Monero community is huge. However, you might ask yourself why you should buy Monero. Well, there are a couple of reasons:
- Monero’s technology is a really cutting-edge one.
- Its privacy is very strong and steadfast.
- If you want to stay fully anonymous, choose XMR coins for your transactions.
So, you firmly decided to buy some XMR. The next question is obvious — where to buy Monero? Changelly is here to offer you an exchange option. If you don’t have any crypto, you can easily purchase BTC or USDT to exchange it for XMR coins. Now, how to do this?
- Choose any cryptocurrency you would like to exchange for Monero.
- Choose the rate structure. Here we have two options: fixed or floating rate. The fixed rate keeps the amount the same throughout the transaction. The floating rate considers market changes so that the final sum can be slightly different. Then, click the “Exchange Now” button.
- Check all the transaction details. On this page, you can learn more about the fee structure and the estimated arrival time.
- Fill in your XMR wallet address. Please double-check it before clicking on the “Next Step.”
- Again, check all the information you’ve entered. If everything is fine, click the “Confirm & Make Payment” button.
- Now, you should send funds within a 36-hour timeframe; otherwise, the transaction will be canceled automatically. Copy our address or use the QR code to send the EXACT amount in one transaction. It’s crucial to have the transaction processed.
- After everything is done, wait for XMR coins to jingle in your wallet. On average, it takes about a couple of minutes. Feel free to address your pain to our support center if something goes wrong. The operator will answer you in less than one minute.
Is Monero a Good Investment?
You can contemplate whether investing in XMR coins is profitable or not. In 2021, XMR reached its all-time high at $517, which is quite a good result for Monero. At the beginning of 2022, the whole market is in a downtrend. So, you can consider this red market as a sale and get some coins.
Let’s make a clear example of how profitable Monero was last year. Imagine you had invested $100 on January 1, 2021. Back then, one XMR coin was worth about $46. So, you had gotten 2 XMR (let’s spend roughly ten bucks on the fees). By September 5, Monero’s price had boosted to $517. So, if you had invested $100, you would have withdrawn more than $1,000 on September 5.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.