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Monero Explained

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Monero (XMR)
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Monero is a cryptocurrency just like Bitcoin, but the only thing that makes it different from Bitcoin is its untraceability. Any transactions that happen on Monero, are secure and away from anyone who tries to sniff the network. The addresses, no matter how cryptographically secure, are always hidden from the eyes of general public. If you want to buy Monero, check out our guide. With Bitcoin, it is not the case. If a user reveals his Bitcoin address on any public forum, his entire history becomes very easy to trace with the available information. The history might include the number of Bitcoins he has, the number he traded, or transferred or the number he sent or received from other addresses as well. This is what makes the Bitcoin network very vulnerable and risky. The address otherwise looks like a jumbled concoction of numbers and alphabets. But if it becomes known to the world, who that address belongs to, that person's information is no longer private. This is an issue that Monero deals with, pretty amazingly. Monero coin hides all the addresses in such a manner that receiver and sender's addresses are hidden even from the receivers and senders themselves. Nobody on the network can view anything at all. The Algorithm it uses is known as CryptoNight, which is famous to provide anonymity to users. Unlike Bitcoin that uses Proof of Work (PoW) algorithm.

Table of Contents

All About Monero (XMR)

Monero coin (XMR) started in 2014 at a price of $2 per coin, and right now, as of early 2018 it is trading somewhere at $400, which is around 20 times of what it was 3 years back. 20 times is a fruitful return, and an amount that not even high-profile companies might be able to provide within such a less time. Monero cryptocurrency uses ring signatures to make the transactions invisible. It inter-mixes sets of transactions in such a way that nobody can recognize which address belongs to whom. This is how the addresses are hidden from public eye. To hide balances and money amounts, Monero coin uses stealth addresses that are one-time random addresses. They cannot be linked or associated with any particular person. Monero cryptocurrency has two keys known as - spend key and view key. In spend key, the user can spend his Monero coins, while using View key, he can provide selective visibility to certain individuals. Selective transparency gives the user complete freedom and power to control the cryptocurrency, the way he wants.

Monero (XMR) vs Bitcoin (BTC)

Monero has many advantages over Bitcoin, and some notable ones are as follows -

  • Private Transactions - With complete privacy and absolute anonymity, Monero coins provide the users what Bitcoin cannot. And that is - the freedom to spend their currency wherever they want.
  • Kovri Technology - Kovri is something that Monero uses at IP level of a user. It conceals all the information from every web browser. It is so effective that it makes impossible to trace which IP Address made what transaction.
  • Free sized block size - Also known as dynamic block size, Monero's blocks do not have a static dimension. The size of the block is easy to adjust, adhering to the number of transactions and traffic on the network. This not only speeds up the process of verifying the transactions, but it also helps the Monero miners to work in harmony.
  • Fast Transactions - With free sized block, transactions are faster, robust and more dynamic, than Bitcoin.
  • ASIC Proofing - Unlike Bitcoin miners, Monero miners do not need high computing power to mine Monero. They can also be mined easily using a GPU or even a CPU.

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