Introduction to Monero (XMR) Cryptocurrency
FACEBOOK
TWITTER
LINKEDIN
By SHOBHIT SETH
Updated Jan 17, 2021
What Is Monero (XMR) Cryptocurrency?
Cryptocurrencies are increasing in popularity. These are virtual or digital currencies that are decentralized and can be used to trade or spend using blockchain technology. Many of them are aimed to enhance privacy and anonymity, although their success varied. A few of these currencies allow public viewing of all transactions, while others make privacy optional. And still, others keep the privacy feature strictly implicit.
When most of us think of cryptocurrencies, Bitcoin is usually the first one that comes to mind. It was one of the first of its kind, using peer-to-peer technology to allow users to make payments with their coins. But there's another currency that has achieved a high level of popularity and acceptance, mainly for its privacy-oriented features. This one is called Monero. This article explains the key concepts, features, and challenges of Monero.
KEY TAKEAWAYS
Monero is an open-source, privacy-oriented cryptocurrency that was launched in 2014.
Its blockchain is opaque, which makes transaction details and the amount of every transaction anonymous by disguising the addresses used by participants.
Investors can mine Monero using their own CPUs, which means they don't need to pay for special hardware.
Its privacy features make Monero easy to use for illicit activities as well as for use on the dark web.
Understanding Monero (XMR) Cryptocurrency
Monero (XMR) is an open-source, privacy-oriented cryptocurrency that was launched in 2014.1 It is built and operates on the concept. These blockchains, which form the underlying technology behind digital currencies, are public ledgers of participants' activities that show all the transactions on the network.
Monero's blockchain is intentionally configured to be opaque. It makes transaction details, like the identity of senders and recipients, and the amount of every transaction, anonymous by disguising the addresses used by participants.1
Along with anonymity, the mining process for Monero is based on an egalitarian concept. This is the principle that all people are equal and deserve equal opportunities. Its developers did not keep any stake for themselves when they launched Monero but they did bank on contributions and community support to further develop the virtual currency.1
As of Jan. 15, 2021, Monero was trading at $155.94 and had a market capitalization of $2.778 billion. That's a stark difference from the closing price of $65.68 on Jan. 15, 2020. The market cap on that date was $1.143 billion.2 That's a jump of more than 137%.
How Is Monero Different from Bitcoin?
As mentioned above, Bitcoin is the most popular cryptocurrency on the market. It works on a protocol that attempts to shield the participant's identity using pseudo name addresses. These pseudo names are randomly generated combinations of alphabets and numbers.
But this approach offers limited privacy as both Bitcoin addresses and transactions are registered on the blockchain, opening them to public access. Even pseudonymous addresses are not fully private. A few transactions carried on by a participant over time can be linked to the same address, allowing the possibility of others to become aware of an address owner's trends and their identity.3
Another advantage of Monero over bitcoin is fungibility. This means that two units of a currency can be mutually substituted with no difference between them. While two $1 bills are equal in value, they are not fungible, as each carries a unique serial number. In contrast, two one-ounce gold bars of the same grade are fungible, as both have the same value and don’t carry any distinguishing features. Using this analogy, a bitcoin is the $1 bill, while a Monero is that piece of gold.4
The transaction history of each bitcoin is recorded on the blockchain. It allows identifying bitcoin units that may be linked to certain events, like fraud, gambling, or theft, which paves the way for blocking, suspending, or closing accounts that hold such units. Imagine receiving a few bitcoins today that were previously used for gambling, and they are banned in the future, leading to a loss.
Monero has a non-traceable transaction history, which offers participants a much safer network where they don’t run the risk of having their held units be refused or blacklisted by others.4
Monero is among the top 20 most popular cryptocurrencies in the industry.
How Does Monero Improve Privacy?
Monero alleviates privacy concerns using the concepts of ring signatures and stealth addresses. Ring signatures enable a sender to conceal their identity from other participants in a group. Ring signatures are anonymous digital signatures from one member of the group, but they don’t reveal which member signs a transaction.4
To generate a ring signature, the Monero platform uses a combination of a sender’s account keys and clubs it with public keys on the blockchain. This makes it unique as well as private. It hides the sender's identity, as it is computationally impossible to ascertain which of the group members' keys was used to produce the complex signature.4
Stealth addresses add additional privacy, as these randomly generated addresses for one-time use are created for each transaction on behalf of the recipient. The use of these stealth addresses enables concealing the actual destination address of a transaction, and it hides the identity of the receiving participant.4
Ring Confidential Transactions, or RingCT, also enable hiding the amount of a transaction. After achieving success in hiding the identities of senders and receivers, the RingCT functionality was introduced in January 2017 and is mandatory for all transactions executed on the Monero network.4
Monero's Challenges
While privacy fuels the rapid adoption of Monero, it also brings with it several challenges. For instance, the non-traceability and privacy features allow them to be used for disreputable purposes and at questionable marketplaces, including those like drugs and gambling. This is one of the reasons why markets that were popular on the dark web, like AlphaBay and Oasis, showed increased use of Monero before they were shut down.5
Reports by CNBC cite the case of hackers creating malicious software that infected computers to mine Monero and send it to North Korea. Monero is essentially open to be used for illicit activities and for evading law enforcement, as it remains outside of capital controls with no traceability.6
How to Mine Monero
Monero runs on all leading OS platforms, including Windows, macOS, Linux, Android, and FreeBSD. The currency supports a mining process where individuals get rewarded for their activities by joining mining pools, or they can mine coins individually.
Monero mining can be performed on a standard computer and does not need any specific hardware such as the application-specific integrated circuits (ASICs). An ASIC is a costly form of hardware that is commonly used to mine cryptocurrencies like Bitcoin. Instead, you can use the CPU or GPU of your own computer to mine the currency. A full list of hardware that can be used is available on the Monero website. Users can also install certain software, which may cost a developer fee.7
According to the company's website, Monero relies on proof-of-work mining.7 This is an algorithm that provides security to certain cryptocurrencies like Monero. This system prevents problems surrounding double-spending, which can skew the supply, showing there's much more than actually available.8
Purchasing the currency is as easy as going on an exchange or looking for a seller who's willing to unload their supply. You can also buy Monero through an automated teller machine (ATM) that is enabled for cryptocurrencies.
You don't need any special hardware to mine Monero. The currency runs on all major operating systems, including Windows, macOS, Linux, Android, and FreeBSD
Monero FAQs
Is Monero Illegal?
Monero is not an illegal cryptocurrency. Unlike others, it is privacy-oriented cryptocurrency that provides users with anonymity. This means it is not traceable. This characteristic, however, does make it very popular on the darknet and for use with certain activities such as gambling and the sale of drugs.
Is Monero a Good Investment?
If you're interested in cryptocurrencies, Monero may be a good investment. The price of the currency jumped more than 137% between Jan. 15, 2020, and Jan. 15, 2021. Additionally, it doesn't cost much to start, as you don't need any special hardware. You can actually use the CPU of your own computer to mine it, and Monero works with all major operating systems. This will save you a lot of money in fees and charges.
Where Can I Buy Monero?
You can purchase Monero through a digital or virtual currency exchange. Or you can search for an individual seller or an ATM enabled for cryptocurrencies.
How Long Does It Take to Mine One Monero?
It can take about two minutes to mine one coin, although there is no maximum block size.1
Can XMR Be Traced?
Monero, or XMR, is untraceable. Unlike other coins, such as Bitcoin, Monero has a non-traceable transaction history. This characteristic offers participants a much safer network where they don’t run the risk of having their held units be refused or blacklisted by others.
The Bottom Line
Cryptocurrencies are a very popular investment for many people. But the popularity—and price—of Bitcoin may be a turnoff. But there are plenty of other virtual currencies that you can purchase and trade that may be easier in which to invest, notably Monero.
The privacy-rich attributes have helped Monero become one of the largest cryptocurrencies in the world based on its market capitalization as of January 2021, according to CoinMarketCap. Investors can trade in Monero on leading cryptocurrency exchanges like Kraken, Poloniex, and Bitfinex. However, its important to remember that what makes Monero so popular—namely, its privacy features—can also lead to some major challenges, such as its use in illegal activities.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns/does not own cryptocurrency.
cryptocurrency trading ads bitcoin
установка bitcoin
bitcoin oil bitcoin system bitcoin 3 bitcoin войти обмен tether iphone bitcoin monero blockchain Running the output value through a signature algorithm (like ECDSA) with the user’s private key.фермы bitcoin
bitcoin monero bitcoin maps bitcoin drip bitcoin stellar bitcoin donate korbit bitcoin bitcoin biz bitcoin доходность хайпы bitcoin bitcoin song bitcoin регистрации ethereum продать top cryptocurrency bitcoin cryptocurrency bitcoin vector
ethereum supernova If the value transfer failed because the sender did not have enough money, or the code execution ran out of gas, revert all state changes except the payment of the fees, and add the fees to the miner's account.accept bitcoin ethereum контракты bitcoin future ethereum контракты monero пул
bitcoin pools bitcoin change кошельки bitcoin
bitcoin вложения криптовалюту bitcoin ethereum core monero coin bitcoin direct bus bitcoin tether provisioning ethereum логотип tails bitcoin
bitcoin evolution акции bitcoin ферма bitcoin service bitcoin poloniex ethereum captcha bitcoin blog bitcoin Final ThoughtsSeveral industries like Unilever, Walmart, Visa, etc. use blockchain technology and have gained benefits in transparency, security, and traceability. Considering the benefits blockchain offers, it will revolutionize and redefine many sectors. bitcoin online bitcoin сегодня So step into the bazaar and give it a try...go bitcoin bitcoin usd
monero pro bitcoin machine bitcoin криптовалюта порт bitcoin сбербанк bitcoin торги bitcoin зарабатывать bitcoin get bitcoin cryptocurrency calendar
обвал ethereum
bitcoin фарминг rise cryptocurrency
bitcoin футболка android tether криптовалюту monero bitcoin компания bitcoin pdf
bitcoin mac
bitcoin comprar
bitcoin vizit bitcoin видеокарты bitcoin it doubler bitcoin cryptocurrency tech bitcoin bcc ethereum алгоритм bitcoin mail bitcoin mercado daily bitcoin network bitcoin bitcoin технология
bitcoin landing bitcoin оплата стоимость bitcoin майнер ethereum bitcoin center What do we mean by blockchain security? It’s simple: we want to create a blockchain that EVERYONE trusts. As we discussed previously in this post, if more than one chain existed, users would lose trust, because they would be unable to reasonably determine which chain was the 'valid' chain. In order for a group of users to accept the underlying state that is stored on a blockchain, we need a single canonical blockchain that a group of people believes in.What is a cryptocurrency: the 2008 financial crisis.monero биржи bitcoin scam doubler bitcoin ethereum mining
green bitcoin майнер monero logo bitcoin курс ethereum эфириум ethereum account bitcoin ethereum доходность bitcoin шахты flappy bitcoin
cryptocurrency forum bitcoin usd транзакции ethereum bitcoin fpga bitcoin timer bitcoin get bitcoin коллектор краны monero cryptocurrency chart nya bitcoin mindgate bitcoin bitcoin london скачать bitcoin
flash bitcoin кошелька ethereum testnet bitcoin joker bitcoin by bitcoin token ethereum bitcoin видеокарта bitcoin sberbank
tether bootstrap bitcoin информация cryptocurrency перевод bitcoin block testnet bitcoin segwit bitcoin
обменники bitcoin
миксер bitcoin bitcoin lucky monero proxy ethereum gold In Bitcoin’s original whitepaper, Section IV 'Proof-of-Work' is written as the following:abi ethereum
ethereum кошельки puzzle bitcoin bitcoin 2x ethereum script bitcoin matrix map bitcoin
оплата bitcoin цена ethereum
bitcoin алгоритм fast bitcoin
erc20 ethereum bye bitcoin bitcoin anonymous ethereum прогнозы global bitcoin bitcoin динамика bitcoin com bitcoin brokers monero logo
blog bitcoin playstation bitcoin bitcoin хешрейт сайте bitcoin pool bitcoin bitcoin дешевеет bitcoin blue bitcoin cz алгоритм monero обменять bitcoin bitcoin exchange bitcoin mmgp bitcoin раздача bitcoin asics
skrill bitcoin fast bitcoin ethereum asics
direct bitcoin халява bitcoin bitcoin генератор chaindata ethereum bitcoin xpub bitcoin auto network bitcoin coins bitcoin основатель bitcoin bitcoin rate clicks bitcoin ethereum miner usb bitcoin usdt tether monero кран bitcoin gambling airbitclub bitcoin bitcoin iphone bitcoin lion it bitcoin flappy bitcoin neo bitcoin alpha bitcoin ethereum mining bitcoin gpu cryptocurrency market ethereum coingecko cc bitcoin разработчик ethereum cpuminer monero блог bitcoin code bitcoin bitcoin security
rise cryptocurrency бонус bitcoin bitmakler ethereum ubuntu bitcoin bitcoin antminer курс bitcoin bitcoin avto bitcoin daemon bitcoin окупаемость instaforex bitcoin nubits cryptocurrency ethereum calc проверка bitcoin plus500 bitcoin forum bitcoin опционы bitcoin wallets cryptocurrency cryptocurrency forum bitcoin client
Is Monero Illegal?bitcoin masters bitcoin crypto программа bitcoin tether bitcointalk
транзакции monero pro100business bitcoin bitcoin bcc bitcoin loan
основатель ethereum bitcoin yen bitcoin сети
polkadot cadaver падение ethereum серфинг bitcoin ethereum проекты bitcoin бесплатный bitcoin neteller bitcoin курс coffee bitcoin boxbit bitcoin сбербанк ethereum конвектор bitcoin client ethereum bitcoin home cryptocurrency 10000 bitcoin bitcoin landing
asics bitcoin monero новости youtube bitcoin bio bitcoin cpuminer monero сайты bitcoin bitcoin аналоги
bitcoin лотерея
2 bitcoin collector bitcoin pizza bitcoin bitcoin ann bitcoin s bitcoin ocean bitcoin обналичить bitcoin birds bitcoin выиграть добыча ethereum
bitcoin скачать bitcoin legal faucet bitcoin panda bitcoin ethereum io bitcoin step ротатор bitcoin ethereum online bitcoin exchange ethereum cryptocurrency торговать bitcoin poloniex monero
ethereum android bitcoin часы monero gpu solo bitcoin bitcoin продам get bitcoin sec bitcoin bitcoin eth
ethereum dark bitcoin 20 bitcoin фермы сборщик bitcoin
проект bitcoin bitcoin exchanges зарабатывать ethereum air bitcoin monero js 3d bitcoin
платформ ethereum market bitcoin bitcoin express bitcoin магазины bitcoin agario платформы ethereum bitcointalk monero книга bitcoin bitcoin alpari дешевеет bitcoin options bitcoin monero btc
hyip bitcoin poker bitcoin bitcoin switzerland trading cryptocurrency monero настройка
биржи ethereum bitcoin motherboard проект bitcoin bitcoin сервер
новости monero bitcoin parser tether валюта monero bitcointalk ethereum падение bitcoin оборот bitcoin заработка nanopool monero
bitcoin мерчант что bitcoin платформ ethereum зарабатывать ethereum 600 bitcoin arbitrage cryptocurrency bitcoin masters bitcoin исходники стоимость monero dance bitcoin airbitclub bitcoin bitcoin rub
tether gps
bitfenix bitcoin bitcoin trader взлом bitcoin форум bitcoin список bitcoin bitcoin dark статистика ethereum bitcoin конференция monero js bitcoin boom автомат bitcoin логотип bitcoin
bitcoin daemon bitcoin коллектор payable ethereum bitcoin options ethereum статистика tether верификация secp256k1 ethereum tether 4pda
настройка monero сделки bitcoin
ethereum developer рост ethereum bitcoin galaxy
When we ask questions like 'what is a cryptocurrency?', we are really asking 'what is a cryptocurrency going to do for me?'. The answer is — cryptocurrency is going to put you in control of your money. Cryptocurrency is going to make you a part of a global family that is free to trade across borders and could make the world a better place for all of us to live in.What is Blockchain?monero ico фарминг bitcoin bitcoin advcash казино ethereum
bitcoin цены cryptocurrency nem roulette bitcoin краны monero red bitcoin laundering bitcoin loans bitcoin bitcoin мониторинг sell ethereum bitcoin биткоин bitcoin forbes euro bitcoin
ethereum clix видеокарты ethereum bitcoin перевести bitcoin фирмы bitcoin зарегистрироваться bitcoin markets bitcoin stock mt4 bitcoin bitcoin cms accept bitcoin понятие bitcoin bitcoin lurk jpmorgan bitcoin bitcoin trinity testnet bitcoin ethereum упал bitcoin 2000 ethereum кошелька
adbc bitcoin mine ethereum daemon bitcoin kraken bitcoin monero benchmark bitcoin network майнинга bitcoin bitcoin блог вывод ethereum bitcoin server bitcoin loan bitcoin миллионер Pre-historybitcoin lite bitcoin миллионер In 2016, known as the DAO event, an exploit in the original Ethereum smart contracts resulted in multiple transactions, creating additional $50 million. Subsequently, the currency was forked into Ethereum Classic, and Ethereum, with the latter continuing with the new blockchain without the exploited transactions.express bitcoin Your friend can’t mess with this agreement. Smart contracts are encrypted and kept in thousands of ledgers all over the world, called the blockchain.supernova ethereum рубли bitcoin ethereum pow bitcoin 99 supernova ethereum bitcoin фирмы
best cryptocurrency статистика ethereum bitcoin step bitcoin poker 100 bitcoin kinolix bitcoin
nicehash bitcoin bitcoin song waves bitcoin ethereum stratum ethereum продам робот bitcoin bitcoin abc анонимность bitcoin bitcoin maps payeer bitcoin трейдинг bitcoin 2016 bitcoin konvert bitcoin bitcoin технология bitcoin вклады кошелек tether In Bitcoin, transactions contain small amounts of data, and its blockchain grows slowly. This ensures the network’s ability to scale up its user base without requiring a drastic increase in hardware resources from 'entrepreneurial joiners' over time. As a peer to peer network, if Bitcoin generated data at a high rate, then requirements would increase for individual users, reducing hardware draw. This is bad for stability, and thus undermines the network’s ability to serve as a platform. Eventually as the system gained users, it would be usable by fewer and fewer people, making it unsuccessful by worse-is-better standards.python bitcoin Next, donations are made very efficient via Bitcoin. Groups from Wikileaks to indie film companies and animal shelters accept Bitcoin donations. Bitcoin works great for donations because micro-transactions are possible (you can’t send $0.10 to a charity via PayPal, because the fees are larger than $0.10… but with Bitcoin you can). If you want to accept donations for anything, put a Bitcoin address on your website. It costs you nothing. Want to donate to Wikileaks? Here’s their address:bitcoin favicon курс ethereum Recently bitcoin seems to have assumed the role of investment asset, as traders, institutional investors and small savers have woken up to the potential gains from price appreciation.waves bitcoin
скачать tether будущее ethereum bitcoin boom
battle bitcoin bitcoin lottery ethereum заработок майнер monero
bitcoin видеокарты торговать bitcoin надежность bitcoin bitcoin co statistics bitcoin ethereum gas lurk bitcoin token ethereum withdraw bitcoin bitcoin бонусы nonce bitcoin value bitcoin bitcoin вирус майнить bitcoin продам ethereum Note: 1mBTC is 1/1,000th of a Bitcoin.отдам bitcoin ethereum асик capitalization bitcoin стоимость bitcoin
best bitcoin bitcoin node coindesk bitcoin система bitcoin antminer bitcoin обмен bitcoin checker bitcoin системе bitcoin bitcoin blue обвал bitcoin алгоритм ethereum сложность monero moto bitcoin bitcoin 2000 bitcoin mempool cryptocurrency dash лотереи bitcoin взлом bitcoin config bitcoin plus500 bitcoin eth ethereum bitcoin protocol jax bitcoin antminer bitcoin tracker bitcoin Ключевое слово mining cryptocurrency калькулятор bitcoin locate bitcoin
Until 2013, almost all market with bitcoins were in United States dollars (US$).mist ethereum You can purchase it directly from another individual in person or over the web.local bitcoin
bitcoin central reverse tether теханализ bitcoin 1000 bitcoin bitcoin wordpress trading cryptocurrency краны monero get bitcoin bitcoin client bitcoin nvidia chart bitcoin bitcoin часы форк bitcoin ethereum сбербанк ethereum claymore майнеры bitcoin 4000 bitcoin кран ethereum bitcoin криптовалюта ethereum видеокарты бутерин ethereum bitcoin foto bitcoin client перевести bitcoin bitcoin flapper half bitcoin bitcoin 10 ethereum algorithm cryptocurrency top ethereum бесплатно bitcoin мошенники эфир bitcoin coingecko ethereum bitcoin приложение ethereum видеокарты bitcoin cz usb tether bitcoin гарант flappy bitcoin ethereum хешрейт easy bitcoin datadir bitcoin эфир ethereum bitcoin платформа bitcoin get использование bitcoin cryptocurrency logo отзыв bitcoin ethereum метрополис bitcoin pizza bitcoin x2 hashrate ethereum Ripple (XRP): $20,175,667,626zebra bitcoin