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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

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Understanding the Uses of Different Types Of Cryptocurrencies

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Cryptocurrencies – a term which has become incredibly prominent in the mainstream media during recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has earned an almost infamous status. However, as with any major step forward, there is still much confusion regarding the use of cryptocurrencies, what different types of innovative electronic cash exist and what they might mean for the future.

We’re putting all of this to rest as we explain what each of the leading cryptocurrencies can do.

Bitcoin

The most popular form of cryptocurrency, Bitcoin was first thought up in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the whitepaper online.

It took almost a decade for the cryptocurrency to reach its peak, but in December 2017 a single Bitcoin roughly exchanged for the price of $17,000, meaning anyone who held a substantial amount of the electronic cash became significantly wealthy.

In its early years, the cryptocurrency was strictly used as an alternative for cash transactions, and predominantly for trading goods and services. However as it has increased in popularity, its range of uses has also widened, now deployed for a variety of purposes including acting as collateral for investments at merchant banks, a direct debit for subscriptions services and most notably for sports betting.

Ripple

Bitcoin’s closest source of competition, Ripple was founded…

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New DoJ Ruling May Cripple Gambling dApps

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A new decision made by the US Justice Department has expanded restrictions regarding online gambling in the US affecting gambling dApps. While the Federal Wire Act of 1961 prohibited online gambling regarding sports since 2011, the new decision expanded on this, and it now includes all forms of internet gambling. Unfortunately for many, this now also includes cryptocurrencies.

The new decision came due to considerable difficulties when it comes to guaranteeing that only interstate betting will take place and that payments will not be routed via different states.

The new announcement was explained in a 23-page-long opinion issued by the Department of Justice’s legal team, which pointed out that the 2011 decision misinterpreted the law. According to that decision, transferring funds was to be considered a violation, but data transfers were not included. By exploiting this oversight, it was possible for gamblers to turn to internet gambling. Unsurprisingly, many have realized this early on, including startups, as well as large, established firms. This, of course, also included cryptocurrency companies as well.

The new decision changes what is allowed online

The decision to include all forms of internet gambling is a massive hit in the…

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7 Steps to Recovery from a Crypto Trading Loss

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Whether you are a newcomer to the crypto market who mistakenly invested a large amount into the wrong coin, or a professional that made a well-researched decision and something still went wrong, the result it the same — you lost your money to the crypto market. This is a big problem, but also a problem that every crypto trader faces at some point.

The reason may be anything, from simple bad luck to the lack of research. Add to that the fact that the crypto market continues to be extremely volatile, and it is clear that not all of your trades are going to end up successfully.

Whatever the reason is, the fact remains that you experienced a loss and that this is a problem which can affect more than your funds. It can also affect your mind and feelings. Since every successful trade that you have the potential to make in the future depends on you, you have to recover first, and only then should you worry about the funds.

The road to recovery is different for everyone, and it will take a different amount of time and effort. However, there are a few general steps that you can take to recover from a crypto trading loss.

Step 1: Stop and calm down

You have just suffered a major loss. It may have been your mistake, or…

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