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MONERO – A CRYPTO COIN


Hello Crypto Enthusiasts,

I believe you all are aware of cryptocurrencies. The most famous and known one is Bitcoin. Mostly, cryptocurrencies are used to trade between two peoples or two entities depending upon the requirement. Since, crypto currencies are totally decentralized and also are anonymous. They are digital currencies work on algorithmic software and don’t have a physical appearance. Cryptocurrencies were formed to eliminate the intermediators and allow transparent and fast transactions by taking minimal fee amounts. This made them more popular and acceptable. Since, Bitcoin and major altcoins are not totally Anonymous. They are Pseudonymous because all the transactions carried out by the users can be publicly seen on the Blockchain Ledger. Right!

This creates transparency but also makes it public. However, today in our blog, I’ll be introducing a different Cryptocurrency to you all. This coin has already gained a high level of popularity due to its Privacy Oriented Features.

Any guesses?

I know, you figured out its name by the Title itself. (Smart guy!)

Yes, it is MONERO.

Monero is a private decentralized cryptocurrency which was launched in 2014 as a fork of Bytecoin – The first private crypto to be created. The name Monero is an Esperanto term used for ‘COINS.” As compared to Bitcoin, Monero is totally different in terms of anonymity. First, I’ll tell you the difference between the terms ‘Private’ and ‘Anonymous.’ Once you understand this, then the further topics will become much easier to understand.

·        In an anonymous transaction, the identity is unknown but the amount shared by the user is fully visible to the public on a public ledger.

·        In a private transaction, the identity is known but the amount shared by the user is totally invisible to the public because of high privacy protection.

So, in case of Bitcoin, the addresses are broadcasted on the public ledger which is visible for everyone who wants to see it. Even the amount sent/received by the users can be seen in it. The identity of the user is anonymous. This makes it a pseudonymous coin.

In the case of Monero, the identity is kept private as well as the amount sent/received is kept totally hidden from the public. The address shown in public is a “Stealth Address.” (I’ll tell you about it further). The transactions made at Monero are totally untraceable. If you want to connect between two accounts and trace them by their track record, then you can’t do that because of its privacy. The origin of the sender as well as the receiver are kept private and hidden from all. The other crypto coins like DASH and Zcash offer private transaction options to the users but they aren’t completely private. Whereas, Monero is completely private.

 

WHAT IS MONERO’S CURRENCY?

 

Monero’s currency is known as ‘XMR.’ It is the cryptocurrency which is used to trade for buying and selling. It is similar to the protocol of Bitcoin which works on the process named – Proof Of Work. The algorithm which is used to mine Monero is called as Crypto-Night. It is ASIC resistant which doesn’t allow anyone to mine more XMR, if you hold a powerful computational power. It can easily be mined through your normal desktop computer or a laptop which makes it more favourable for everyone. There is no limit for the production of XMR whereas Bitcoin is only limited to 21 million. In Monero, a block is created every 2 minutes and by May 31st, 2022 around 18.4 million XMR will get mined and the block reward will be 0.6 XMR/ Block.


 WHAT PRIVACY FEATURE IT PROVIDES?

When it comes to security and privacy, we all are concerned about it. Owing to this, Monero had made its system and functions totally different from other cryptocurrencies.

·        Monero is a completely fungible asset.

·        Monera can’t be traced.

·        The transactions are private.

·        It avoids behavioural analysis.

·        The data is hidden.

·        No third person can trace your patterns of transaction.

·        Can’t map real life identities.

 

The above points are truly amazing because there are many other crypto currencies too, but none have the same properties like Monero.

But WAIT!

There’s much more to understand about Monero. It obfuscates 3 things of the transaction.

1.      SENDER

2.      RECEIVER

3.      AMOUNT SENT

Let’s discuss them briefly.

SENDER

To obfuscate the sender’s identity, Monero uses ‘Ring Signatures’ to make it more private. When a person initiates a transaction on Monero Blockchain, the signature is combined with the past signature and the transaction is carried forward further. These act decoys and makes it more difficult and impossible for a third person to determine who actually sent the amount.

 

AMOUNT

 When a user initiates a transaction and sends an amount then the amount is obfuscated by ‘Ring Confidential Transaction’ also known as ‘Ring CT.’ This helps to disguise the actual amount by showing only a specific small amount instead of broadcasting the whole amount. The information is sufficient to verify and approve the transaction successfully. So, the actual amount is kept private without leaking outside.

 

RECEIVER

This one is amazing. This is performed using a ‘Stealth Address.’ Yes, you heard it well. A stealth address is used to receive funds from the sender without letting anyone else to trace the address. When someone sends funds at that address, the funds are actually sent to the different address. The Stealth Address is a one-time address that transfers the amount to the actual address. If you know about the proverb on elephant then you can easily understand this one. “Elephant has a set of teeth to eat and a pair of teeth to show.”

It means the public address is separated from the private address which makes it non-traceable. Normally, a public key of Monero is a ’95 Character String’ which starts with the number 4.


I believe you all have understood the functions properly.

 

Now, the main question is –

Who should have Monero and why?

Cryptocurrencies are meant for anonymous transactions and digital trading. Since, other cryptocurrencies are mostly public and can be traced through the public ledgers but in a private cryptocurrency, the things are different. If you want complete privacy and don’t want anyone to know about your amount and transaction records, then you can use Monero. Otherwise, you can use other cryptocurrencies for your regular and normal use.

I hope this blog has helped you to understand many things about the Monero.

Still having doubt?

Comment down below your feedback and let us know. We’ll definitely respond to you as soon as possible.

Thanks for reading.

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