Monero: cryptocurrency to keep an eye out — Introduction
The cryptomarket is always evolving. Everyday we see new coins, new technologies, and new ideas being released. In accordance, it is important that every crypto investor must be informed and follow the trends in this area. Only thus it is possible to take part of the opportunities of the market.
To invest in growing markets, like the cryptocurrency market, it is necessary for the investor to focus all her attention in understanding the opportunities, as well as the factors that are capable of influencing the price of the assets.
One of the central advantages of growing markets is the possibility of making good profits through new kinds of assets. However, there are also new risks since the volatility factors are not well understood.
In the cryptocurrency market, new coins are proposed with the promise to solve technical problems faced by the previous technology. Many coins were created like this, such as Ethereum, Cardano (ADA) and Ripple.
Not only that, new coins are proposed due to the distinct values defended by their developers. (Do you want to learn more about the cryptomarket? Check this text)
A new cryptocurrency that recently gained prominence for implementing interesting novelties to crypto technology is Monero. In this post, you’ll learn more about Monero, its history, technology, main features, advantages in comparison to other altcoins, what investor’s profile is more suitable for this coin, and much more. Read on!
What is Monero?
Monero’s history is closely connected to another cryptocurrency, the Bytecoin. Bytecoin was created in 2012 with the goal of being an anonymous coin and to offer a higher degree of security through a type of technology also capable of promoting decentralization — the most important feature for crypto enthusiasts.
Bytecoin was the first digital coin built on a technology called Cryptonote. The Cryptonote technology plays an essential role in many cryptocoins that use safety protocols based on the privacy of their users. In the next sections, we shall explain better what this means.
After the creation of Bytecoin, a group of developers decided to cooperate in the construction of a new and improved version of Cryptonote. As a result, this led to the creation of Monero (originally called Bitmonero). The origin the word comes from the Esperanto, where Monero means “coin”.
It is well known that Monero was created by seven developers, but five of them decided to stay anonymous. The other two are the developers and entrepreneurs Riccardo Spagni e David Latapie.
In order to understand more about the advantages of Monero, in the next section we shall talk about Monero’s technology and its central features.
Monero’s technology
The first interesting feature of Monero is the fact that its platform is open source and permission-less. To put it simply, open source means that the code used in its technology is accessible to anyone, and permission-less means that its safety protocols do not require identification, certificate or other usual forms of authentication.
These features reveal the central concern of Monero’s proposal: to offer freedom of access to its technology and promote a model of technology that does not depend on recording data user.
Monero’s developers are based on the following central principles of the cryptomarket in order to promote their technology: the decentralization, i.e, the absence of any centralized control over the emission of the currency, and the freedom of choice without the control of the information. (If you want to know more about decentralization and other important features of cryptocoins, check this content)
The following are the central features of Monero:
- Privacy: One of the central features of Monero’s technology is the fact that the transactions do not depend on recording the data of users. This means that if you make a transaction with Monero, nobody can trace that transaction back to you. As we said earlier, a central concern for Monero is to keep the privacy of the transactions and, thus, to protect the data of the users in the best possible way.
Monero’s blockchain does not keep any record of receivers, senders, as well as the value of the transactions. The system is built to hide that kind of information and thus defend the privacy of the users;
- Fungibility: Another important feature of Monero’s protocol is the fungibility. This means that it is not possible to trace back all recorded transactions of a Monero’s coin. The same does not occur with coins like Bitcoin, for example. With Bitcoin it is possible to know all previous transactions made with any unit. Thus, if a Bitcoin unit was previously used to purchase something illegal, it is possible to trace back that transaction.
One could even think that Monero’s fungibility could be something bad. However, think about what happens with our physical money. When you receive a U$ 10,00 bill, do you have any idea of how many transactions it was involved with? It is exactly this feature that Monero wants to recover. The result is a greater autonomy on individual uses of the money and not control over the currency. After all, individuals are the ones who should be responsible for the use of money;
- Scalability: Another feature in which Monero proposes improvements in comparison to its predecessors is the scalability of the coin. The scalability of a coin is connected to how many transactions are supported by its network. Most coins have a limit-size related to how much information can be stored. This ends up limiting the number of transactions that can be done at the same time. The natural result is a limit in the number of transactions and much higher fees.
There are three technological features in Monero’s technology responsible for achieving the characteristics mentioned above. They are the following resources:
- Ring signatures: responsible for covering the sender of each transaction.
- Stealth addresses: responsible for covering the receiver of each transaction.
- Ring confidential transactions: responsible for covering the value of transactions.
There are some coins which the blockchain technology offer some of these resources as options for the user, but Monero requires all of them as obligatory. Taken together, these features makes Monero one of the most promising coins in the crypto market.
In the following, we shall talk about other important advantages of Monero so that you can understand more about this coin.
Monero’s advantages
In comparison to other altcoins, one can highlight the following advantages related to Monero:
- High degree of privacy;
- Fungibility, i.e., no record of transactions;
- Higher degree of scalability than most altcoins;
- Mining in regular processors;
- Open source technology
- Collective funding;
- Cheap transaction fees;
- Higher degree of safety;
- Decentralization;
- Ideal choice for those who prefer privacy-based coins;
- Blockchain without previous limit for transactions;
- Team of developers with great technical knowledge.
In order to understand more about Monero’s advantages and technology, in the next section we draw a comparative remark. (Do you want to learn how to analyze a cryptocoin and which criterion to use? There are important hints here)
Monero vs Bitcoin
As we said earlier, one main difference between Monero and Bitcoin is the existence of a higher degree of privacy to its users. To learn more about the characteristics of Bitcoin, in this post you may find a complete guide for beginners.
The Bitcoin system keeps the history of all transactions made by every unit of bitcoin in such a way that it is possible to not only trace back the record of every transaction, but also to know the value available to the user.
The transparency blockchain technologies, like the one used for Bitcoin, seek to promote data transparency to the fullest, not only those relative to the coin, but mostly the data of the users. In case you don’t know what blockchain is and would like to learn more about, check here.
This allows one to follow all data transactions of individuals, companies, and any type of organization. Thus, Monero’s central concern is to provide data privacy and make Monero’s transaction system similar to what we know from our physical currencies.
In addition to these factors, Monero also offers other differences connected to its mining process, both in its mining algorithm and in the type of machined required for this purpose. All these features contribute to Monero’s overall proposal of being a coin open to the public and at the same time able to protect the data and information of its users.
As in other currencies, Monero is also committed to enabling collective participation in its technology, investment strategies and enhancements on your own system.
Who should invest in Monero?
Monero is an ideal currency for those who prefer to invest in assets that promote the initial agenda of the cryptomarket, like security, decentralization and privacy.
Thus, for those who believe that Monero represents an important improvement for the cryptomarket, the investment in Monero is in total conformity with your beliefs. Monero is an adequate asset for those who like assets connected to technological improvements in the cryptomarket and to the defense of the political and economical principles of the market.
In addition to that, Monero is also a very versatile cryptoasset that may fit both conservative and aggressive investment strategies. For those who seek assets with high potential volume, Monero is definitely a very promising coin. In case you want to learn more about investment strategies with cryptocoins, check this content.
How to buy Monero
The process for buying Monero is just similar to the process of buying any other coin, that is,
- Look for an exchange which allows the buying and selling of Monero (exchanges are financial institutions responsible for mediating transactions of cryptocoins);
- Create your profile account;
- Execute the purchase of the coin and wait for the completion of the transaction. After that, transfer the coin to your personal digital wallet. (To learn more about the function of digital wallets for cryptocurrencies, check it in this post);
- Unfortunately, Monero is still accepted only in some specific wallets. Therefore, it is important to have the Monero wallet.
If you have no past experience with investing in the cryptomarket and would like to understand more about what to do to start investing, we recommend this content here.
Monero: Cryptocurrency to keep an eye out — Conclusion
In this post we have talked about a coin that has gained recent attention in the cryptomarket, the Monero. The main proposal of Monero is based on defending the central pillars of the cryptomarket: decentralization, privacy, and safety.
Based on these principles, Monero’s technology offers new features in comparison to other cryptocoins. In order to remember the important points of the text, we highlight them in the following:
- Monero is based on the same technology of another coin: the Bytecoin,
- The technology of these coins has the pivotal feature of defending and assuring the privacy of its users,
- Monero’s technology is open source and does not require identification protocols or information history of the users,
- Monero’s technology is based on three central pillars: privacy, fungibility, and scalability,
- These are guaranteed by mandatory resources to the Monero platform,
- The central feature of the Monero platform is keeping no history of transactions or even access to data users,
- This possibility of anonymity in transactions makes Monero a unique asset to the cryptomarket,
- In comparison to other coins, like bitcoin or the altcoins, Monero has prominence due to its high degree of privacy and safety of data users,
- In addition, Monero offers a high degree of scalability through a novel technology that does not impose any limit size to the transactions,
- Monero is a suitable investment for all investors who prefer assets that bring technological advances to the cryptocurrency market. Furthermore, it is a versatile asset, suitable for different investment profiles.
If you are looking to diversify your cryptocurrency portfolio into promising new assets in the market, Monero is certainly a great choice. However, remember to learn as much as possible about an asset before deciding to allocate its resources.
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