Monero Cryptocurrency Review
Founded back in 2014, Monero is a cryptocurrency that is used for the purchasing of goods and services online and the transferring of funds digitally. Monero was created with security and privacy in mind. With Bitcoin's blockchain, each coin and user has a public transaction history. Many folk online are not comfortable with this situation and have opted to use Monero instead which offers stronger privacy. It is actively used on the Dark Web along with other privacy-centric coins like DASH and ZCash.
Just like with other currencies, Monero is stored inside a digital wallet, where Monero can be sent or received. This means that there is no need to leave your funds with a third party since each user has their own wallet. You can buy Monero at an exchange (eg Kraken) using flat money like USDs or exchange other coins for Monero at ShapeShift or similar.
Unfortunately there aren't loads of options for storing your Moneros. The hardware wallet manufacturers Trezor and Ledger have no plans to support Monero on their devices. The current best option is the web-based wallet MyMonero. Other than that, on a desktop, you can run a full node (but this requires being part of the Monero network).
Features of Monero
The systems used by Monero to transact are quite similar to other cryptocurrencies. It has a decentralized ledger containing blocks that are added to it with each transaction (blockchain). However, the good thing about Monero is that it permits users to conduct private transactions if they want to. Monero also applies the use of ring signature in order to conceal the senders address. It does this by combining several users’ signatures so that no one can know from which ring signature another individual used to send the Monero.
A Ring CT or ring conditional transaction is the tool used to hide the transaction amount. Furthermore, Monero makes use of stealth addresses to hide the recipients address through the creation of a one-time address by the person making transaction on behalf of the recipient of the Monero. In a case a user wishes, they can send out a view key to a several other users that will enable them to see their wallet together with the incoming transactions linked to that account. The good thing is that all of Monero’s transactions have anonymity, which makes them a whole lot more secure than Bitcoin's pseudonymous blockchain.
All of Monero’s coins are fungible since any previous usage is untraceable. If a coin can be traced to criminal activity, potentially, it could be seized and is worth less than a 'clean' bitcoin with no prior history. Using Monero, there is also no risk of a person’s trades being halted at the exchange since the sender, value, use, and receiver of the transaction is not revealed.
Another good thing about Monero is there is not set limit when it comes to transaction sizes and there is also no threat from capital controls unlike with flat money.
The team working on Monero is constantly developing and evolving the currency and chain. However, due to the high level of privacy offered by Monero and its wide use on the Dark Web, there are risks attached to the currency. Governments don't like secrecy or privacy since it can facilitate money laundering, supply of contraband, tax evasion and more. So don't be surprised if governments and regulators will try to put restrictions on Monero in the future. And yes, the FEDs are after you.
What do you think? Comment below.
CaliCrypto last edited by
I really like when it 2017 they implemented Gregory Maxwell's algorithm on Confidential Transactions and an improved version of Ring Signatures. Hopefully this project has more cool upgrades on the horizon in 2018.
Great shout @CaliCrypto.
I think 2018 will be the year that the privacy coins - Monero, Zcash and DASH - will fight it out to the death.