There is a popular belief among people that cryptocurrencies are private and untraceable, explaining their association with illegal transactions. In truth however, this is not the case, for example with bitcoins, all transactions are recorded on a public ledger (blockchain) that allows anyone to view and verify transactions. Monero, however, is not bitcoin but rather focused on non-traceability. According to Monero, "Monero is a safe, private, untraceable currency". The currency uses special encryption to ensure privacy by making all transactions untraceable.
At the time of printing Monero is at $ 89.18 with a market capitalization of $ 1,457,638,595, and although this altcoin is still miles away from the bitcoin, many believe that this coin could be better bitcoin.
Monero & # 39; s Background
This open source cryptocurrency was created as a Bytecoin fork in April 2014 when it was BitMonero. The original author was Nicolas van Saberhagen, who imagined a cryptocurrency that would be safe, private and, above all, untraceable. It is precisely for this reason that has attracted so many users. Currently, the Monero project has more than 180 contributors. Development is very challenging and is actively looking for new ways to improve the project.
Monero is based on the CryptoNight hash algorithm that has a difference from other public accounting cryptocurrencies ensuring that transactions are not traceable.
Concept Behind Monero
To ensure that all transactions are not traceable, the Monero financial system divides all amounts transferred into multiple amounts and considers each amount as a separate transaction.
Controversial Use of Monero
Because of its untraceable feature, Monero has attracted illegal users who look to the currency to fund illegal activities. This currency has in the past been criticized as a promoter of illegal activities as it has become the resource of choice for drug dealers and kidnappers who find it safer for them. This year there was a roar on the popularity of altcoin like Monero, which are focused on privacy, making them even more popular than bitcoins. However, the team behind it defended it by saying it was designed to ensure it is fast.
Benefits of Monero
The first advantage with Monero is that the extraction is simpler. For example, bitcoin was designed to be extracted from PCs. Unfortunately, Satoshi Nakamoto did not expect ASIC to be mine. These types of hardware have a lot of power and have taken the industry, making my PC almost impossible. But, in the case of Monero, the algorithm is unique in that mining sector that uses PC and ASIC are the same. The verification of transactions is fast, making the system more efficient, it also means that it is very easy to extract and more likely to be adopted.
Monero blocks are produced every two minutes. Unlike Bitcoin, where new blocks are discovered every 10 minutes, Monero produces them every 2 minutes. The system is also designed to accommodate high transactions as opposed to bitcoins which delays transactions. In the event of high transaction volumes, Monero automatically hosts high transaction volumes.