Abbreviated as XMR, Monero is another one of hundreds and thousands of decentralized cryptocurrencies. But what sets it apart, and why is it important?
In this video, we’ll discuss everything you need to know about Monero.
When Was Monero Made?
Monero has almost a decade-long history already. It began in 2012 when Nicolas van Saberhagen released the CryptoNote whitepaper.
This paved the way for an initial concept of electronic cash called CryptoNote, which eventually manifested into the Bytecoin, the first cryptocurrency launched based on the CryptoNote protocol.
Then Bytecoin’s codebase was forked to create a new currency, the Bitmonero, a cryptocurrency we now know as Monero.
What Is Monero?
Monero, unlike some generally decentralized coins, is a privacy-focused peer-to-peer digital currency, placing emphasis on being anonymous and untraceable.
Unlike, let’s say, a Bitcoin or an Ethereum coin which can be traced, an XMR is very discreet and cannot be traced at all.
Why is Monero Different?
A Monero coin is impossible to track because it’s FUNGIBLE. Unlike many cryptocurrencies and tokens, which are non-fungible, meaning each and every single coin and token is unique, the Monero is fungible.
Monero coins are indistinguishable from each other. Therefore their origins cannot be traced.
How Do The Transactions Work?
Monero needs two important things to operate: Stealth addresses and ring signatures.
Stealth addresses are what enable a sender to generate a one-time public address for the receiver. Monero users will generate private view keys and private spend keys and use them to complete the transactions.
On the other hand, ring signatures are digital signatures generated in a group. A ring signature allows you to blend in with a group of transactors and hide your identity.
What Do People Think of Monero?
Monero is guaranteed to be private because of its nature, and that comes with pros and cons. Many people love it because of its untraceability, but financial regulators do not like it because they can’t trace XMR payments or collect data on users.
Share your thoughts in the comment section – we’d love to hear them!
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