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Monero: The Secured and Untraceable Cryptocurrency

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Monero
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Since the advent of Bitcoin in 2008, a large number of cryptocurrencies have come up by 2018 and many are on the line. Monero, launched in April 2014, like the other cryptocurrencies, is based on the blockchain technology.

The Story behind the Origin of Monero

The first real-life application of CryptoNote, Bytecoin was launched in July 2012. The application layer protocol, CryptoNote supports several decentralized cryptocurrencies. CryptoNote differs from the application protocol that fuels Bitcoin in several aspects. It was observed that Bytecoin was often used to conduct trades. By that time almost 80% of the crypto coin was published. The developers then decided to fork the Bytecoin blockchain and the newly formed coin would be named Bitmonero. Later, it was renamed as Monero. A block is mined every two minutes in the Monero blockchain.

Monero has gone through substantial improvement phases since its launch in 2014. Monero currently has a team of seven core developers and five of them continue to remain anonymous.

Basic Features of Monero

  • Monero respects privacy thereby, uses cryptography to hide the sending and receiving addresses from the viewers in case of any transaction.
  • Monero offers fungibility where an individual unit of a currency can stand-in for another. Monero thus does not have to face the risk of censorship.
  • In case of Monero, the transaction process is easier and faster. People do not have to wait for multi-day holding periods for confirmation of one transaction. Also, the crypto coin is safe from ‘capital controls’.
  • Monero has multiple keys unlike Bitcoin, Ethereum, and other cryptocurrencies. The public view key of Monero is used to generate the ‘one-time stealth public address’. It is the destination of the recipient. The private view key of Monero scans the blockchain for the recipient such that s/he can access it. The second part of the Monero address is called public spend key. The address length of Monero is 95 characters that include the public view and public spend keys.

The privacy of the sender and the receiver in case of Monero blockchain is maintained by ring signatures. The role of the ring signatures is to combine the user’s account keys with the public keys received from the Monero blockchain. This way the outsiders cannot link a user to a signature.

  Monero Bitcoin
Founder Group of 7 core developers Satoshi Nakamoto (pseudonym)
Release Date 18 April 2014 9 January 2008
Total Coin Supply 18.4 million XMR + 0.3 XMR/minute 21 million
Blockchain Protocol Proof of Work Proof of Work
Usage Digital Currency Digital Currency
Privacy Untraceable Yes
Trackable No Yes
Cryptocurrency Symbol XMR BTC
Transaction Fee 0.004-0.02 XMR/kB Varies based on load on blockchain
Algorithm CryptoNote SHA-256
Blocks Time 120 seconds At least 10 minutes
Mining GPUs, CPU Pools, ASIC miners
Scalable Yes Yes

 

Reasons to Choose Monero over Bitcoin

  • Mining algorithm

Mining is the process through which the cryptocurrency miners run a program on the computer that verifies and confirms the transactions. The Bitcoin mining algorithm runs faster on ASICs (custom made mining chips) compared to desktops and laptops. It is clear that a person cannot take part in the mining process of Bitcoin unless they have access to ASICs. The power consumed in the Bitcoin mining process is quite high. To solve these issues, the mining algorithm of Monero was designed such that the ASICs do not have any such advantage over ordinary computers. This way the general public can take part in the mining process of Monero and even earn the crypto coin. They will just have to run the mining software on their home computers and solve the puzzle. Anyone having a Monero wallet can start mining on their desktops or laptops by simply clicking on a single button.

  • Block size limit

The transactions appear as a part of the block when it is proclaimed to the Monero or Bitcoin network. The time taken to create a new block for Monero is approximately 2 minutes whereas that of the Bitcoin blocks is approximately 10 minutes. In case the Bitcoin block has reached its limit, the next transaction will take a considerable amount of time to be confirmed. If it is an urgent case then, the interested person will have to increase the transaction fees (paid to the Bitcoin network). The developers of Monero have designed the crypto coin in such a way that it features an automatically adaptive block size limit. This means that the blocks will expand to accommodate higher transaction volumes.

  • Incorporation of the ‘invisible internet project’ I2P layer into Monero

The ‘invisible internet project’ I2P layer will enhance the privacy features of the Monero blockchain during a transaction. It will also add a protective layer to prevent passive network monitoring. Therefore, the payments will remain untraceable. Moreover, people scanning the network will not even be able to say that a person is using Monero.

  • The design goals of the Monero developers

The designing and developing team of Monero have introduced some unique features to the world of cryptocurrency and their goals are ambitious.

The Monero coin holders have the option to keep their transaction history private. They can also choose share certain information. The view key of an account allows the Monero users to see the transaction history of that account. Monero’s USP thus lies in privacy, anonymity, and security of the transactions.

We will be updating our subscribers as soon as we know more. For the latest updates on XMR, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time 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.

Image courtesy of coinmarketcap.com

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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Bitcoin crash
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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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coins
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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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crypto credit cards
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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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