What is Monero?

What is Monero?

To date, the cryptocurrency market is rich in a variety of crypto coins and the introduction of new ones occurs almost daily. In addition, they have quite unique advantages that make it possible to compete with more powerful predecessors. One of these coins is Monero (XMR), which is increasingly gaining momentum and occupies a leading position in the market.

The cryptocurrency gained its popularity due to the preservation of anonymity, untraceability, and security of currency transactions. Monero is open-source and its work is based on Ring Signature technology. A Ring Signature is an electronic signature that can be put by every Monero coin holder who has keys. The key is the piece of information or data that each member of the ring/group receives. That is, the approval of the ring signature is automatically confirmed by all members of the group. The main indicator of Ring Signature security is the complete anonymity of the sender. His identity can not be determined in any way, so Monero is gaining popularity so quickly and becomes an important cryptocurrency for transactions.

In addition, the coin uses blockchain technology to store information in its network. Duplicates of the blockchain are the owners of Monero, and the invisible address (Stealth Address) hides absolutely all transactions from third parties in the network. Due to this anonymity, Monero is often used to exchange one cryptocurrency for another, since the same Bitcoin records all transactions in the public register.

History of currency

For the first time, Monero was released to the market in 2013 by Nicholas van Saberhagen and was called BitMonero. But it became widespread only in 2014 in April. But 2016 was a significant year for Monero and it was characterized by increasing its market value and capitalization.

The most significant drawback of Bitcoin is the lack of anonymity. All transactions in Bitcoin network are public and if the person deanonymizes his address anyone could see all info about his transactions and balance.

Any user who knows the wallet address can track:

• the available amount on the wallet;

• what amount was sent or received;

• when and at what time the exchange took place and for what amount.

This is the difference between Monero and Bitcoin, the first cryptocurrency has absolute anonymity. In addition, the Monero platform has the following unique abilities as opposed to the legendary Bitcoin:

• a new block in the Monero system takes no more than 2 minutes, while Bitcoin takes 10 minutes;

• Monero has a much better and faster mining algorithm

•  making transactions in Monero you cannot be tracked

These are the main and undeniable advantages of Monero over Bitcoin and many other cryptocurrencies, which make Monero very attractive for investment.

The main advantages of XMR

Due to the following advantages, the Monero coin has gained such popularity:

1. Anonymity – cryptocurrency works in the blockchain network, so no one will be able to see the number of coins purchased.

2. Interchangeability – absolutely all XMR coins have the same value in the market.

3. Absolute security is guaranteed by the decentralization of all wallets for transactions.

4. Untraceable – no one can trace the transactions in any way.

In total, all the advantages give a fairly good prospect for the Monero cryptocurrency.

Forecast for cryptocurrency

Analysts of the cryptocurrency markets believe that Monero is waiting for further growth. This is due to the work of blockchain technology, which pays maximum attention to the anonymity and security of its users. Today cryptocurrency attracts a large number of users, as well as service providers and goods that use XMR for their payments. Therefore, the prediction for this currency is in the absence of reducing the cost and increasing the price of one coin to $ 200 or more. For investors in the present and future, this is great news.

Also, the developers of the cryptocurrency plan to increase the level of adaptation of the coin in the sphere of service and trade enterprises. This is especially true in those parts of the world where adaptation is increasing very slowly. In addition, the developers plan to create an upgraded platform for those who develop decentralized applications.

Conclusion

The Monero cryptocurrency is a great option for those who put anonymity and transaction security first. And the quality of engineering developments aimed at the desires of users only increase the chances of the digital coin to take a leading place in the cryptocurrency market and to press the legendary Bitcoin. Already today, the developers plan to implement a large number of new projects. By the way, several of which were implemented in 2017.