Monero
The Monero cryptocurrency (XMR) has not been on the market for too long and, nevertheless, it is increasingly being used by users due to the numerous advantages it offers compared to other alternatives such as Bitcoin.
The main characteristic that we must highlight of Monero, is its high privacy and security.
Although this system based on the blockchain has unique and exclusive advantages, one of its most significant features are the security measures that have been taken, as well as the concern to maintain the privacy of users and transactions.
Precisely for this reason, Monero has also become very popular in the black market of the Internet (the 'deep web' above all), since the anonymity of the senders and receivers is preserved at all times, just as in the transactions that are carried out through this system.
Therefore, in the following sections we will talk in more detail about this currency, in order to know what are its characteristics and the advantages that we have if we decide to finally work with it.
What is Monero (XMR)?
In this sense, we have to tell you that Monero is a cryptocurrency that was created in April 2014 and, since then, it has experienced a great growth that has positioned it among the first virtual currencies in the market.
Although it does not have many years of experience in the sector, this has not been any problem for Monero (official website), which has managed to find a niche in the market thanks to the features it presents and the advantages it offers.
»A coin with an improved system
Although it is now known as Monero, this cryptocurrency was initially born under another name, BitMonero. As you may have noticed, part of the name of the digital currency is now the same, however, at that time the prefix Bit was added.
This was because Monero was created based on the Bitcoin system, but little by little, it included improvements and modifications to it, to create a different and own system that was much more private and anonymous.
With respect to this cryptocurrency, we also have to say that, to operate with it, the acronyms that are usually used are XMR. Therefore, this currency started being a complement to Bitcoin and, later, it became a cryptocurrency that presents unique and exclusive characteristics.
What are their characteristics?
Among its features we will highlight some of its anonymity, privacy and scalability.
One of the advantages of Monero is that all transfers are anonymous, and perhaps that is one of the reasons for its success. Everything that is decentralized and anonymous seems to like, and in fact it may even be too much, because even cybercriminals have long started to show their interest in this cryptocurrency.
Today is the cryptocurrency that offers more anonymity of all, worldwide.
Although everything is registered in a Blockchain at any time it is possible to know the actual amount of money sent, so we could say that this makes Monito cryptocurrency a much more secret option, to put it in some way.
In fact, he has already been associated on more than one occasion with the Darknet, which has been like the dark Internet, accessible only to the most knowledgeable and where you can find all kinds of illegal businesses such as arms sales, drugs. ...
In short, Monero is an accepted cryptocurrency for all types of transactions, including those just mentioned, and that is why it is related to the darkest part of the network.
However, Monero is like any other cryptocurrency, and can be used for all types of transactions. For that reason, and despite the bad reputation that may have among some, its price continues to rise, and grows every day that passes.
Read our article on the best cryptocurrencies to invest in 2018
Another characteristic of Monero is the privacy it provides, and although this can be very useful for financing all types of criminal activities, it can also help us to find out about the money we have, something that can be totally lawful.
As we know, most of the cryptocurrency that we can count by dozens at present have been developed with Bitcoin technology. However, we can say that Monero is one of the few that started with a different protocol, that of CryptoNote.
One of the most remarkable features of this technology is that the encrypted system ensures that transactions are signed by several people at the same time, and not by a single person. That is why it is the most anonymous cryptocurrency of all there is.
In terms of scalability, Monero's differences are different from other cryptocurrencies, since the size of the block in this case has no pre-established limits, as it does with other systems where block chains have a specific number predisposed.
In Monero the size of the block is calculated automatically after a trial period, and there will always be enough reward for those who mine, plus a larger block means a greater number of operations per second.
It should be noted that Monero is a fairly liquid cryptocurrency and that it is available in the vast majority of Exchanges for which you can exchange and use it.
On the other hand, say that Monero has no emission limit, and so far around 15 million Tokens circulate.
The price of Monero at the moment is 238,56 USD.
How does Monero work?
After this brief introduction, it is time to know how Monero works and the system on which it is based.
We will start by saying that this currency, as it happens with other digital currencies, works within an independent system, that is, it uses a decentralized program through which we can carry out our operations.
We say this because, being decentralized, the cryptocurrency in question is not governed by the rules of any public entity, therefore, the transactions we perform will be one on one, that is, directly between the users and we will not have to use any intermediary about.
»Based on the blockchain
use of blockchain technology
As we all know, the general system on which the cryptocurrencies are based is the block chain, which means that it uses the blockchain technology. This works in the following way: the verified transactions are grouped to create those blocks and that all are connected.
The usual thing is that all these transfers are limited, however, the great characteristics of the Monero system is that, in this case, there is no limitation, therefore, all the necessary transactions can be carried out and grouped into infinite blocks if it were the case.
What this system does is calculate the weight of each of these blocks and the signature they carry, is done automatically. Taking into account also that this grouping, is carried out in a much faster (about 2 minutes) than in other cryptocurrencies.
»Without limitation of units
how many moneros can be created
We can also highlight this system, which does not have limitations when it comes to establishing a number of cryptocurrencies that can be used in the market.
For the time being, Moneros will be created whenever necessary, for this reason, the growth of this virtual currency has been so remarkable in recent times and today, experts estimate that this figure can increase considerably, even reaching 18.4 million euros. Moneros in circulation in a short time (it is estimated that in 8 years).
After a while, 0.6 XMR will be created constantly for each creation of a block in a period of 2 minutes and this will cause a small inflation of 1% that will continue to fall. In spite of this, the Monero system is designed so that, at least, each miner receives 0.3 XMR per block.
»Use the CryptoNote protocol
Another important aspect that we should comment on this system is that it is capable of creating unique addresses for each of the transactions that are made, that is, each recipient is given a private key that must be used to make said transaction effective. .
As we have already mentioned, privacy in Monero is fundamental and this is achieved thanks to the protocol it uses, known as CryptoNote.
This one has the peculiarity that, all the transactions that are carried out, are not signed by a single person, if not by many, therefore, it is difficult to know who has left the mark, taking into account also that no information is known some about the receivers, the emitters and about the quantities.
Use of Ring Signatures technology
The Monro system also used a protocol created in 2012 by Nicolas van Saberhagen, which what he does is divide all the figures into the parts that are never going to be equitable.
Once this process has been carried out, the numbers are mixed with those of other users and, therefore, it is impossible to decipher the established codes.
This protocol works thanks to the use of the technology known as Ring Signatures, whose translation means "ring signature", which means that a combination of several signatures is made and only one is the real one.
Main benefits
After knowing how the Monero system works, it is indisputable that with this cryptocurrency we will obtain a large number of benefits, in addition, it also offers us multiple advantages.
By way of summary, we will see in this section these most important advantages of this cryptocurrency:
Privacy: using Monero you can not filter any information about us, that is, both our personal data and the amounts with which we will work are completely anonymous.
Decentralization: it is a totally decentralized system, which is not regulated by the regulations of the public entity, for this reason, all movements are carried out without having an intermediary.
Speed: transactions are much faster and for this reason, we can carry out a greater number of them in less time (usually done in about 2 minutes).
Limitation: As we have said in previous years, the amount of Monero is NOT fixed, that is, you can produce coins in an unlimited way.
These are some of the most notable benefits of Monero but then, we will detail how we can make money investing using this peculiar virtual currency.
Last conclusions
After having finished the article, it is clear that Monero is a cryptocurrency that has many advantages and unique and exclusive characteristics.
In addition, it is increasingly being used by users, due to the privacy and anonymity that it presents, which guarantees users that their data will not be filtered at any time, neither the personal ones nor those referring to the amounts with the who are going to carry out the transfers.
Therefore, this is a digital currency that is becoming increasingly important in the financial market and, in a short time, has positioned itself among the first cryptocurrencies that are used to perform transactions within this market.
Posted on Utopian.io - Rewarding Open Source Contributors