Market Cap $1,700,000,000
What is Monero?
Monero is a private, untraceable, open source, and fungible coin. As bitcoin, it allows you to become your 'personal banker' because it eliminates the need for a third party intermediary. It also protects your financial transactions from being accessed or altered by the general public. It does so by covering up all your transactions from being accessed by the other members of the network. It extends this cover to all of your receipts, funds transfers, and purchase ledgers.
This currency was created in April 2014. It was initially called BitMonero and was based on the CryptoNote protocol. It differs widely from other digital currencies in the sense that it has different algorithms that make it difficult to understand.
Monero differs widely from other digital currencies of its kind. Unlike other crypto-currencies such as Bitcoin and Etherum, it keeps your transactions inaccessible by the wider public. It also secures your currency details in such a manner as to make them completely untraceable. This digital currency accomplishes this feat by utilizing complex cryptographic techniques.
This digital currency’s system is designed in such a way as to uphold censorship resistance and maintain privacy. Due to this, all your transactions are invisible to the wider public. This includes those who have access to that particular blockchain. It also does not compile a ‘Rich List’ as is the case with other crypto-currencies. Because of this, you cannot access even those accounts that have the highest number of coins.
It also comes along with an exclusive ring signature algorithm. This is basically a validation criterion that uniquely identifies a user in a blockchain. Being unique, it greatly obscures transactions by making them completely untraceable. For this reason, your identity is withheld at all times. This ring signature also prevents other users from tracking your transactions back to you.
All the coins that are generated by this digital currency have the same value and are also equal in worth. As such, all the accompanying transactions display some level of ambiguity. This being the case, no user, vendor, or entity can turn them down or blacklist them altogether. This is the core reason why most entities are opting for Monero in lieu of other digital currencies like Bitcoin.
This currency safeguards the integrity and security of all of your transactions. It accomplishes this feat in two main ways. First, it secures each transaction cryptographically by utilizing the capacity which is provided for conscientiously by the peer-to-peer distributed network. Secondly, at the time of creating your account, you are furnished with a special 25-word mnemonic seed. This is the ‘password’ that you will use to validate every subsequent transaction. It is also required whenever your account is tampered with and in need of a recovery.
All Monero transactions are conveyed via a peer-to-peer network. In such an arrangement, all the nodes (terminals) within the network are of equal stature and significance. This equality negates any special preferences for one node over the other. Consequently, no single node has greater access, influence, or control, over transactions at the expense of the other nodes. Further to this, no individual within the node may be able to keep track of transactions. You may, therefore, trust this system to deliver to your highest expectations.
Monero is primarily intended to be an open source product. This means that it allows the general public to access its source code to authenticate both its validity and security. In addition to this, the crypto-currency also allows each of its features to be systematically and mathematically verified. This is by reason of being compatible with several peer-reviewed study papers.
Where & how to buy Monero?
You may buy or sell this currency via several platforms. These platforms are technically called exchanges. Some of the top examples of these platforms include the following:
This exchange is a bit complicated for the average beginner. It is nevertheless one of the top exchanges in existence. This platform grants you the ability to trade Monero currency (XMR) with US Dollars, Euros, or Bitcoins (XBT).
It provides a flawless way of exchanging Bitcoins or Altcoins for Monero. Its exchanges rates are nevertheless non-competitive. The platform does not require you to create an e-mail account or provide other personal identifying pieces of information. Because of this, it is very convenient and suitable for exchanging small amounts of money.
To buy Moreno via the ShapeShift.io platform, you simply need to click the ‘deposit’ alternative. You then have to specify Moreno as the ‘receive’ option. After this, the software shall prompt you to furnish your personal Moreno address. (You may conveniently furnish this piece of information by copy-pasting it from the initial.address.txt.file). You will then have to provide your personal Bitcoin refund address to cushion you against unforeseen circumstances. To finally effect the purchase, you will have to agree to the terms and conditions governing the use of ShapeShift software.
PS: In case you are withdrawing money from the Moreno wallet, you will have to leave your Payment ID field blank. You are also required to pay extra attention to the minimum and maximum deposit caps. You will have to stay within the prescribed limits to avoid any unnecessary errors or mishaps.
Upon receiving your full exchange requests, ShapeShift shall proceed to exhibit your Bitcoin payment address. Your requested Monero payment shall then be released soon after it has been broadcasted across the entire blockchain.
On the whole, ShapeShift is pretty simple and convenient. For this reason, WannaCry Ransomware Creators recently opted to use it to convert their Bitcoins to Monero.
This is a registered exchange that allows you to trade Monero in fiat currency. To trade this digital currency via this platform, you will have to buy or sell using the OKPay. You will then receive or be able to send the specified amount via your wallet.
BitSquare is basically a decentralized computer application software platform. It is designed to greatly facilitate the trade of currencies between two or more individuals. It carries out its exchanges by establishing a connection through TOR platform. This ensures that your privacy is upheld when making all your Monero purchases. Only your trading partner may view your payment information finer details.
On the flipside, this platform is somewhat complicated. It also lacks the needed liquidity for the successful trade of Monero. Further to these, the platform takes longer to identify potential Monero sellers in your locality.
This platform is by far the largest and preferred Monero exchange. This is mainly because it offers the lowest prices and deepest liquidity. It is however not as secure and private as should be the case. In order to carry out a transaction via this platform, you will have to sign up using your e-mail address. The entire exchange is then facilitated via the TOR connection. As such, your e-mail address has to be compatible with TOR.
What is the best wallet?
Every crypto-coin has 'wallet system' to store your funds. This digital wallet comprises an exclusive receiving address. It is this address that you relay to your contacts to have them deposit funds. The following are some of the main different kinds of wallets:
It is pretty similar to the online wallet. It describes that Monero wallet which is connected directly to the internet. It enables the smooth sending of funds. However, it is not so secure. You are hence advised not to store a lot of funds in it.
Unlike the hot wallet, the cold wallet does not require an active internet connection. Instead, it is generated by a computer or any other trusted devices by use of an air gap. In case such a gadget is to be used again, the data that is stored has to be overwritten securely.
NB: These accounts may be stored in any media. These include the CD, DVD, USB drive, paper, or any other hardware wallet device.
Ledger Hardware Wallet
Ledger is a hardware wallet providing the highest possible security. As of writing this article.
Moreno Core GUI
This wallet adds an extra Graphical User Interface (GUI) to the core wallets that are mentioned above. It is still in its trial version though. It supports only Windows, Linux, and Mac, alone at the moment.
Monero Wallet CLI
Apart from merely storing funds, this wallet allows you also to store pertinent pieces of information. It also enables you to send and receive Moneroj. The wallet software also keeps a safe record of all the transaction logs. That aside, it also enables you to sign messages cryptographically. It is supported by Mac, Windows, Arm, Linux, and BSD.
This is strictly speaking not a wallet as such. Instead, it is a website which offers free web hosting services for Monero accounts. It thus allows you to leverage the services and benefits of Monero without necessary running the blockchain in your personal account. Through it, you can gain access your Monero funds.
Monero Vs Bitcoin
Untraceable Digital Money
John sent 1BTC to Adam
? sent ? xmr to ?
It is the act of running a special program on computers that verify and process crypto-currencies like Monero. These transactions have to be first and foremost be announced by other users via the world wide network.
Monero is potentially rewarding. That’s because it is centered on Proof-of-work. It also comes along with smoothly-varying block rewards. These individual blocks are to be re-targeted by the difficult and comprehensive 60s block target.
In order to actualize this process of mining, you will have to go through the following stages. You will have to use special software and a computer to solve some intricate mathematical problems. In case you are successful, you will receive tokens in the form of Monero digital currency. This feat requires a great deal of computational power. This power may be derived from CPU or GPU. On the whole, any kind of person may accomplish this mining task.
THE PROCESS OF MINING
For a start, you may choose to mine alone, or in the company of others. Going alone is potentially difficult, especially so for starters. Due to this, you are strongly advised to do it in the company of others. Teamwork approach also expedites the process. This is because of the collective effort of each individual user, reduced variance, and a steady flow of income.
Prerequisites for Mining
The following are some of the options you may have to exploit to actualize this process:
You may contemplate joining a pool. As earlier mentioned, pool mining is generally more effective than solo mining. You are strongly encouraged to join a smaller pool in case you are a starter.
Alternatively, you may consider investing in a special mining hardware. Such hardware has the potential to simplify your task of mining and bolster your mining hash rate.
There exists numerous mining software. You may consider acquiring as many of them as possible. You should thereafter try them out to find out which one is most effective.
How to Mine
To do this, follow these two simple steps:
STEP I: Select your Mining Pool
Identify and join an appropriate mining pool. This is the only way to boost your chance of achieving success. To get started on this, you may wish to pay a visit to moneropools.com. There is a long list of some of the various pools that may help you to get started. You are also strongly advised against opting for solo mining. That’s because you may have to wait longer before receiving any rewards.
STEP II: Enter your Pool Information and Start the Mining Process
The miners are ordinarily run from the first command lines (there are very few miners that are based on the Graphical User Interface). To do this successfully, you are simply required to follow the documentation of the software. You are then to run it with your pool’s address and the other miner’s information.
HOW DOES MONERO WORK?
Monero basically works by generating coins which may be subsequently mined. It comprises a principal emission curve that generates in excess of 18.4 million coins that may be mined within a duration of 8 years. The 8-year duration is anticipated to last until the year 2022. Indeed, by May 2022, it shall have generated and released approximately 18 million coins. Shortly afterward, it shall steadily release approximately 0.6 by MR for every 2 minutes block. This shall result in a 1% sub-perpetual inflation that shall be accompanied by a 0.87% yearly rate of inflation starting May 2022.
Unlike most other crypto-currencies, Monero’s reward mechanism is devoid of block halving. On the contrary, it smoothly decreases with time. As has already been intimated, Monero also comprises the Proof-of-work algorithm (CryptoNight). This is an Advanced Encryption Standard algorithm. It is also memory heavy and quite intensive, so much so that, it minimizes the GPU and CPU advantages significantly.
SAFETY OF THE TRANSACTIONS
Monero does protect the transactions that transpire on its network in three main ways. These are listed and explained below:
Use of Ring Signature
This is basically a privacy monitoring control tool. It basically hides your identity and address from being viewed by others in the network.
It covers up all the pieces of information that pertain the transaction amounts. This feature operates by default and will from the end of 2017 be made mandatory.
Use of Stealth Address
This address basically hides all information that regards the receiving address of the transactions. It, therefore, prevents unsuspecting third parties from accessing your vital records unnecessarily.
Other than the tools that are mentioned above, there are other additional safety features in the pipeline. One shall be able to conceal the transaction’s original nodes. Another one shall be a router that shall be basically intended to support this operation.
WHAT IS THE FUTURE OF MONERO?
As has already been stated above, Monero was officially launched in the year 2014. It has since doubled and even quadrupled in price. Bictoin’s low scalability is speculated as the main reason why many prefer Monero. Its faster speed and lower prices have further accentuated interests from various quarters. This being the case, Bitcoin’s continued low scalability is likely to drive further interest in Monero and other alternative crypto-currencies.
At the beginning of the year 2017, Monero did incorporate the RingCT. This feature further bolsters its privacy, a move that is likely to elicit further interest. Monero has also demonstrated a steady show of maturity and stability in value. These traits, combined with Monero’s ease of deployment, interchangeability, and Bitcoin’s market instability, makes it all the more preferable.
Going further, Monero is more likely to be applied and used outside of the financial sector and in such areas as insurance and technology. This is due to the fact that its underlying control systems do dispatch and confirm transactions speedily. This has made it a viable option especially by global firms that would wish to enhance their security and operational transparency. The same case applies also to those firms that may wish to improve their operational efficiencies.
Monero is still in infancy, by reason of having been launched only recently (in 2014). It waits to be seen just how far and how much progress it is likely to bring along.