Monero does not work on a derivative of Bitcoin’s technology. It has its very own system which ensures privacy. Monero offers its users complete control over who gets to view their transactions, keeping them encrypted at all times. It is relatively new but is highly promising.
What is Monero?
Launched in April 2014, Monero is an open source, decentralised cryptocurrency that was founded by 7 developers. Monero offers several unique features over other cryptocurrencies in the market. Its USP includes the high privacy it offers, the fact that it is ‘fungible’, is dynamically scalable and is ASIC resistant with multiple keys. Users value this currency for being virtually untraceable, so that transactions and transaction history can only be viewed by approved users.
Value of Monero
The Monero coin is called the XMR. There are currently 15,054,759 XMR in circulation. The value of each of these coins is about $114.83. The total market cap for Monero is currently $1,728,798,235. The value of the XMR has historically fluctuated, having been much higher in January 2018, with a value of $494. It is therefore predicted to only increase to up to ten times its current value in the year 2018 alone and onward.
Technology behind Monero
Unlike Bitcoin and Ethereum which offer complete transparency about the history of transactions on each coin, Monero offers full privacy, leaving the user in control. The coin uses the CryptoNote protocol, making use of its CryptoNight hash algorithm. It is best mined using CPU, which is great news for miners, because it means that they can use their preexisting hardware to mine the coin. It can also be mined using GPUs. This currency is ASIC resistant, meaning it cannot be mined using Application Specific Integrated Circuits. The entire process of mining this currency is certainly a lot easier than that involved in the mining of Bitcoin, as a result.
What makes it so awesome to the users? The ring signatures combine various inputs, making it virtually impossible to trace links between various transactions done by the spender. The destination addresses are also encrypted such that only the buyer and seller know about it. The transaction amount is also hidden by the ring confidential transactions.
It can be purchased through traditional cryptocurrency exchanges like Kraken and others. Anonymous purchases of this currency can also be made by placing a deposit of cash at a normal bank and even through conversion of existing cryptocurrency like Bitcoin. Monero is best stored using a hardware based wallet, which is currently being worked out by the developers. You can use a web based wallet or smartphone based wallet to store this currency in the interim. Make your first cryptocurrency trade.
The future certainly looks bright taking into account the high privacy features this cryptocurrency offers. The fungibility of this currency is its best selling point, keeping its users safe from legal procedures that arise out of past transactions that have nothing to do with the current owner of the coin, unlike other cryptocurrency. Keep an eye on the rates this cryptocurrency offers and buy coin while the rates are low so that you can reap the profits in the future.