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XMR Monero Explained in 500 Words

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XMR Monero is a digital untraceable currency; this makes it very safe and secure to use. Monero is open source, meaning that anybody can use it. It was launched on the 18th of April 2014 with decentralization being its main focus. Basically, with monero you are in control of your funds. The new Monero developments are fully community-driven.

Monero is a privacy coin and so all your transaction details are kept private. In the cryptocurrency world, privacy is of utmost importance. This privacy feature it what makes tons of traders and investors to flock to Monero.

How Does Monero Work?

Monero is powered by the CryptoNote protocol. CryptoNote transactions cannot be followed via blockchain to find out who was the sender or receiver in a particular transaction. Monero hides the transaction amount, sender and receiver identity using RingCT, Ring Signatures, and Stealth Addresses.

The concept of unlinkability means that the transactions are assigned a random onetime destination address that is not linkable to the users. What this also means is that two transactions sent to your public address cannot in any way, be associated with having the same recipient. Your public record will never appear in the public records.

Features

XMR has some special features that make it in-demand. Let us have a look at these unique features:

  1. Your currency is yours

You are completely in control and responsible for your coins. Nobody can see how much money you have or what you spend it on.

  1. Dynamic scalability

Unlike other cryptocurrencies, Monero does not have any block size limit. However, a block reward penalty is built into the system to prevent malicious miners from clogging up the system with huge blocks.

  1. Monero is ASIC Resistant

ASIC stands for Application Specific Integrated Circuit. The cost of manufacturing ASICs for Monero is so high that is not feasible. Monero is based on the CryptoNote system and the CryptoNight algorithm. Cryptocurrencies which implement CryptoNight cannot be mined.

  1. Multiple Keys

Monero has two view keys; the public view key and the private view key. It also has the private and the public spend keys.

  1. Monero is Fungible

Fungibility is a special property gained by Monero due to its privacy. Fungibility refers to the ease of interchangeability or substitution of an asset with other assets of the same type. Monero coins are all of the same value. This is because the transaction records are nonexistent so one cannot tell a particular coin’s history. Other cryptocurrencies such as Bitcoin have “tainted” and “clean” coins hence they’re not fungible.

Pros and Cons of Monero

Pros

  • The most secure cryptocurrency
  • Its transactions are not linkable
  • Monero has achieved staggering financial growth
  • Monero has an amazing team of developers
  • Its transactions are not traceable
  • Even after its supply runs out, there will be an unending 0.3 XMR/minute supply. The aim being to incentivize Monero miners
  • Monero is selectively transparent. A user can make a transaction visible to another person that they choose, especially for auditing purposes
  • There is no block limit and the blockchain is dynamically scalable

Cons

  • Monero is hard to add things to
  • There are not many wallets available that are compatible with Monero
  • It’s not beginner friendly
  • It has not been adopted widely

 

Dorothy Latch

The author Dorothy Latch