Monero Cryptocurrency (XMR)

Monero (XMR) is one of the most popular and traded cryptocurrencies in the world. It provides unique features in terms of security and confidentiality that makes it stand out among other coins.

  1. What is Monero?
  2. Monero’s features
  3. How Monero works
  4. XMR Mining and storage
  5. Monero’s strengths and weaknesses

What is Monero?

Monero is one of the most anonymous and protected cryptocurrencies based on the CryptoNote protocol. Its decentralized blockchain ecosystem has an open code and is built on innovative technologies that make Monero transactions almost untraceable and the coin itself very popular. It was initially launched in 2014 as a fork of another cryptocurrency, Bytecoin.

Its name comes from Esperanto and simply means “Coin”. When first launched, this cryptocurrency was called BitMonero, which literally means “BitCoin”. Today Monero enters the list of Top-20 cryptocurrencies with the largest market capitalization. Its developers update Monero’s algorithms every 6 months to keep it protected from attacks and maintain the users’ confidentiality.

Monero’s features

Monero is said to be the most confidential, secure, untraceable and autonomous cryptocurrencies on the market. Unlike most other cryptocurrencies, XMR doesn’t require other blockchain participants to verify XMR transactions. Monero users have full control over visibility of their operations. While all XMR transactions are hidden by default, the users have tools they can use to demonstrate the state of their accounts and keep their coins safe at the same time. 

How Monero works?

XMR transaction are hidden from tracking by technology called Ring Signature. It mixes up XMR transactions with each other making it impossible to trace individual transfers. Monero also hides the wallet’s balances using the Stealth Addresses technology. It generates random dynamic addresses that can’t be linked to specific individuals.

Monero users have two access keys that provide either limited or full access to the wallet. The View Key can be used to share the user’s transaction in a view-only mode, for example, for the audit and reporting purposes. The Spend Key grants full access to the XMR wallet and allows making XMR transactions without limitations.

XMR Mining and storage

Emission of XMR is not limited and coins can be mined using GPU or CPU of a computer. Both options can be beneficial depending on the utilized hardware. To start mining XMR, one will need to install the mining software and a wallet. Many miners prefer to join the mining pools to speed up the mining process and increase the outcome.

XMR coins can be stored in many virtual wallets and exchanges. The developers have also released an official Monero Wallet available for multiple platforms.

Monero’s strengths and weaknesses

Obvious strengths of XMR are:

  • decentralization provided by the blockchain technology;
  • complete confidentiality and security of transactions;
  • unlimited number of coins;
  • easy mining compared to other coins.

Confidentiality can also be considered the weak spot of this cryptocurrency since governments tend to ban cryptoactives they can’t track or control. There is a risk of Monero getting suspended from exchanged in China, India and several other countries.

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6 thoughts on “Monero Cryptocurrency (XMR)

    As for me, cryptocurrency without potential. The only feature is Cryptonote, which provides greater anonymity in comparison with bitcoin. Most users simply don’t need this, not to mention the fact that, due to Cryptonote, the Monero blockchain is 8 times heavier than Bitcoin. Those. the scalability issue is even more acute.

    I have just realized you guys do these overviews on the weekly basis. Keep up the good work!

    BoomerangTraders

    Monero is the most confidential coin. Its encryption has been praised by many Bitcoin developers. The only coin whose transactions are confidential by default (and cannot be sent without mixing). The CryptoNote protocol is used to safely and efficiently “mix” with other segments of the blockchain. + Pros: The most confidential coin available. Using a ring signature. RingCT also hides transaction amounts. Kovri adds support for Monero I2P to hide the IP addresses of users. Great support on Reddit, Slack, Telegram, and even StackExchange. Lack of pre-mine. – Cons: It is still quite difficult to use (requires the use of the command line). Not accepted in many places.

    I don’t use Monero, but it is very convenient if you need complete anonymity. Many people use it in this regard, seemingly without problems. She is also popular.

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