The history of Monero (XMR) dates back all the way back to July of 2012 when Bytecoin, the first real-life implementation of CryptoNote, was launched. CryptoNote is the application layer protocol that fuels various decentralized currencies. While it is similar to the application layer which runs Bitcoin in many aspects, there a lot of areas where the two differ from each other.
Running on Cryptonote Bytecoin had promise, however, people soon caught on that the majority of coins, around 80% were already published leaving very little room for growth has coin hoarding for scarcity drives up the price and entry to the market.
So on April 2014, it was decided that the bytecoin blockchain will be forked and the new coins in the new chain will be called Bitmonero, which was eventually renamed Monero meaning “coin” in Esperanto. In this new blockchain, a block will be mined and added every two mins.
The Monero is open source which means the code is freely available to developers to view, edit and update and submit their own improvements while the project was initially crowdfunded to generate the initial capital. The Monero project is headed up by a group of 7 developers of which 5 (named Smooth, othe, Noodle Doodle, TacoTime and eizh) have chosen to remain anonymous while two have come out openly in public. They are David Latapie and Riccardo Spagni aka “Fluffypony”.
What is Monero (XMR)?
As I’ve mentioned before Alt coins exist because they offer a unique service or have a different take on the current crypto technology. So what is Moneros gimmick? Monero offers its users a secure, private and untraceable currency system of transacting.
This is done via a special kind of cryptography to ensure that all of its transactions remain 100% unlinkable and untraceable. In an increasingly transparent world, you can see why something like Monero can become so desirable.
While the obvious downside would be that Monero could be used for nefarious purposes it also opportunity for a lot of grey market transactions to be moved into the crypto market. It could also be seen as the saving grace for many who live under tyrannical governments who need to send and receive money without it being linked to them.
While the ethical principles behind a tool like this may be debatable it’s hard to ignore the benefits of total anonymity on both sides of the argument.
Why you should pay attention to Monero?
While its anonymity may be its biggest talking point Monero is much more than just the digital version of passing money under the table, it is an in-demand currency with several unique properties so let’s see what makes it so special.
1. Your currency is yours
You have complete control over your transactions. You are responsible for your money. Because your identity is private no one will be able to see what you are spending your money on, so no one will be able to help you track or recover transaction data apart from yourself. So heed my warning I took from Uncle Ben, with great power comes great responsibility.
2. It is Fungible
Another interesting property that it gains, thanks to its privacy, is that it is truly fungible. All coins have the same market value irrespective of time or place, and each individual unit of a currency can be substituted for another making it so transactions between fiat or crypto ensure you do not lose out during the conversion process.
This feature removes the need for a central bank or government to overlook the market. Also, all wallets or nodes are equally eligible to verify Monero coins.
Monero coins can’t be traced back on the blockchain because of encryption. While your transactions are still pushed and held in the blockchain like any other currency it is encrypted in such a way that no one can read, break into or access details of the transaction.
Monero transactions and wallets are secured by irreversible cryptographic math.
What is Monero being used for?
Whistleblower websites like Wikileaks need funds to continuously set the internet straight and dispell rumours and fake news published via mainstream media and questionable sources. Sites like these do not rely on content syndication or advertiser revenue in order to run. Their main aim is to remain impartial and rely mainly on donations. While many people may feel they want to contribute to the cause but want to have any ties to it due to political risk, Monero makes it easier for sites like these to receive donations without risk to either party.
Products and services
Many merchants providing their products and services online are already accepting bitcoin and they often also take XMR, if not you can use services like shapeshift to convert your Monero into BTC or ETH which are more widely accepted.
Can you mine Monero?
Monero is a decentralised system that uses blockchain technology which means it can be mined by the individual or by those in mining pools. Monero can be mined using either CPU or GPU processing power and is based on the proof of work concept of mining.
One of the advantages of mining Monero at the moment is that there are no ASICs currently available so you can complete for blockchain transactions using your PC and is a great and potentially profitable coin to look at while you find your feet in the mining game.
Can you earn Monero?
A Monero faucets are a reward system, in the form of a website or app, that dispenses rewards in the form of a Monero for visitors to claim in exchange for completing tasks like a captcha or task as described by the website.
Due to its anonitimy it wasnt long before gambling took to Monero and their are plenty of online betting and casino microgames using XMR are starting to pop up all over the net, all it takes is a simple internet search.
As mentioned earlier Monero can be mined, this can be done by setting up a pc with the software or a fully customised rig and start mining solo or in pools.
WHERE CAN YOU BUY MOnero?
Monero is listed on a few of international cryptocurrency exchanges and is actively traded on websites like:
- Tux Exchange
Should you invest in Monero?
Behind Bitcoin & Ethereum, Monero is one of the fastest growing cryptocurrencies in the world. It is highly secure and has been able to maintain the confidentiality of its coins and the coin owners and its appeal to those who seek anonymity will never cease making it a stable market to be in. People have different reasons for wanting to conceal their financial info, and this has to be respected. Monero makes it very possible for them to hold and transact in this way. Money that may have been kept in grey markets or outside traditional financial institutions will be pushed into Monero opening it up to an entire unserviced economy of global money and transactions.
However, it is worth noting that there are plenty of unfounded accusation that associates Monero currency with illegal money such as drug trafficking money.
Monero is not a money laundering scheme as getting your cash into Monero still needs to be done via an Exchange. It is simply a cryptocurrency that ensures the privacy of its users. Where they get their money from and what they decide to do with their money is up to the individual.
For more information you can check out the official Monero website
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Disclaimer: This article should not be taken as, and is not intended to provide any investment advice and is for educational purposes only. As of the time posting the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency as all investments contain risk.