It is common these days for companies to analyse your data and identify patterns, map real-life identities and also uncover behavioural information about users.
Many people do not like to be studied and value their privacy, hence the need for an anonymous coin like Monero.
It was founded in 2014, based on a technology that exists roughly from 2012 and it is using cryptography to ensure that all of its transactions remain 100% unlinkable and untraceable, opposed to other cryptocurrencies where the ledger is public.
The project was founded by a group of developers, most of whom have chosen to remain anonymous. Only two have come out openly: David Latapie and Riccardo Spagni aka “Fluffypony”. The project is open source and crowdfunded.
Also see: Ripple v stellar
There are numerous uses for a private cryptocurrency like Monero, mostly they can be used to securely send money wherever and whenever.
There are a couple of cryptocurrency out there than can offer you the option to make a private transaction like ZCash or DASH, in Monero’s case all transaction are private with no exception.
The Monero Protocol
Focuses on 3 things: the sender, the receiver and the amount sent.
• To conceal the sender’s identity, Monero uses ring signatures when the user is making a transaction, their signature is combined with past signatures from the Monero blockchain, making it impossible to determine who makes the transaction.
• The amount sent is concealed with ring confidential transaction (ringCT); This is broadcasting into the system a lesser amount than the one being paid.
• And to hide the receiver, it is using something called a stealth address, which is derived from the public address, it is also using software that reroutes your transaction through multiple virtual nodes so that your IP address is also concealed.
Monero’s currency XMR, is similar to Bitcoin, and it is using the proof of work algorithm, the production of new coins is made by mining.
The algorithm used to mine Monero is called CryptoNight, it is different than the one for Bitcoin, here the processing power of the machine doesn't matter, because the actual mining is made in the background via browser, most of the time.
In the case of Bitcoin, there is a limit of 21 million coins, in Monero, a coin is made at every 2 minutes, and it is estimated, that by 2022 they will be 18.4 million XMR in circulation.
The main features of Monero
• Property, this means that you have complete control of your transactions, your identity is private so no one will be able to see what you are spending your money on.
• It has a dynamic scalability, meaning that there is no size limit for a block, in bitcoins case, it has a self-imposed size of 1 Mb per block.
• It uses a hashing algorithm that makes it distinctly different from bitcoin or other cryptocurrency on the market called “CryptoNight” making it more decentralised.
• Using CryptoNight, developers were trying to prevent the creation of mining pools and make the currency balanced.
• Another exciting thing that differentiates Monero from other cryptocurrencies, is that there are multiple access keys, making it more secure.
Monero can very well be the best private cryptocurrency because it is scalable with no limitation, also it is 100% decentralised private and untraceable.
If you are new to the Cryptocurrency world and would like to open an account we recommend Cex.io.
Also see: Tips To Trade The Volatile Crypto Market
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