What is Monero? Taking a Look at the King of Privacy Coins
Cryptocurrencies have taken the financial world by storm, and among them, Monero stands out as the undisputed king of privacy-focused digital assets. So what is Monero? Well, launched in 2014, Monero has become synonymous with anonymity and security in the crypto space, thanks to its innovative design and robust privacy features. It is an ASIC resistant proof of work coin that anyone with a CPU can mine. On top of it all, it’s hated the most by governments and institutions because they cannot spy into transactions like they can with other transparent cryptocurrencies.
Privacy by Default
Unlike most cryptocurrencies like Bitcoin and Ethereum, where the blockchain is fully transparent and people can watch the transactions happen and what addresses are making them, Monero is just the opposite. With Monero‘s ring signature encryption, users can make transactions without others knowing how much you have in your wallet, or who you are transacting with. Many other privacy coins like DASH and ZCASH only have optional private transactions, otherwise, they are as transparent as Bitcoin. Monero is also actively working on integrating I2P (The Invisible Internet Project) through Kouri to safeguard users’ IP addresses.
Unbounded Inflation and Network Security
Monero takes a unique approach to inflation, with an emission cap of 18.132 million XMR reached in May 2022. Following this, a constant tail emission of 0.6 XMR every 2 minutes ensures approximately 1% inflation per year. This permanent inflation mechanism serves to incentivize miners, enhancing the security of the Monero network without having to increase network fees like we are seeing with Bitcoin and Ethereum. These low transaction fees are attractive to people to actually use Monero as currency.
ASIC Resistance and True Fungibility
In April 2018, Monero took a significant step to maintain decentralization by becoming ASIC-resistant. This move aimed to prevent mining centralization and promote a fair and distributed network. Monero‘s emphasis on privacy ensures that it is a true fungible coin, meaning each unit is indistinguishable from another, enhancing the privacy of users.
View Key: Transparency Without Compromising Privacy
Monero introduces the concept of a ‘view key,’ allowing users to selectively share transaction details with third parties or auditors without compromising the ability to spend coins. This innovative feature strikes a balance between transparency and privacy, providing users with control over the disclosure of their financial activities.
Privacy Coins in the Crosshairs of Governments
While the crypto community embraces privacy-focused coins like Monero, governments, particularly the Japanese Financial Security Agency and the IRS in the US, express concerns about their potential misuse for illegal activities. However, Monero‘s robust community support and its role as a primary payment method for certain transactions, such as buying branded Tor onion domains, highlight a genuine market demand for privacy-respecting cryptocurrencies.
In conclusion, Monero‘s unwavering commitment to privacy, coupled with its innovative features and community backing, positions it as the trailblazer in the realm of privacy cryptocurrencies. As governments grapple with the implications of anonymous digital assets, Monero‘s resilience and relevance underscore the enduring need for financial privacy in an increasingly surveilled world.
This post was written for and originally posted on my cryptocurrency research site, Coin Logic.
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The only thing bad about Monero is you really have to download the whole chain in order to get an accurate view of what you have in your wallet.
Of course this isn't too bad if you keep up on it. But if you check your wallet once a year, it will take forever to load.
ARRR is arrrguably better at privacy, but it yet to be seen if they will make it, and then, will they compete with Monero?
There are so many new privacy coins now a days. Monero is the first one as far as I know. The rest the privacy coins seem a little bit like shitcoins in that they do what on the surface seems like the same but privacy on Z-Cash is implemented in a different way than Monero. One has to balance merchant acceptance, spread costs, transaction fees and features when choosing which to use.
ZCASH is as transparent as Bitcoin unless you choose to use the privacy features, pretty much the same as DASH. It's an optional feature.
They haven't been able to compete yet. I am actually liking DERO the more I look into it as well.
As far as using Monero, the Cake wallet is the quickest at keeping up with the blockchain which makes it easier to use.
Yeah, looking into a sole wallet for Monero.
Sending Monero to my Exodus wallet was a big bad decision.
DERO also looks good to me. I just really depends on how much govern-cement fuckery starts happening. Privacy coins may become mandatory. Or, the govern-cement become so ineffective, that lightning network bitcoin is the way.
I don't care what the government does. I have been 'breaking the law' pretty much my whole life... Why would I stop now? LOL.
'Breaking the law"??!! You mean, like exhaling too much CO2?
Or (gasp) buying things with your own money?
I guess those things too, lol. Unlike Bill Clinton, I did inhale... A LOT, lol.
If we cannot check the ledger, how can we trust the network? I am all into privacy etc, but transparency is also needed for trust.
It's more involved than just looking at the block explorer, which is a good thing for privacy. Really only those who make the transactions can see the blockchain information for that transaction only. Here is a reference for that:
https://www.getmonero.org/resources/user-guides/prove-payment.html
As far as not being able to see into my wallet, that is a benefit. You shouldn't be looking into my funds anyway. This is a big flaw in every transparent cryptocurrency in my opinion. That's how you link to real world IDs. I don't really like that people can see my Hive wallet. Feels very big brother to me. I think it's a beautiful thing that the IRS can't track my Monero because taxation is theft. The more businesses that accept it, the better. Doesn't mean I am doing bad things, just means it's nobody's business what I am doing with my money.
Those who run full nodes can verify the supply of the coins by doing a little math. It's difficult to read for a reason. Miners secure the network the same as Bitcoin or other POW coins, it's just done with a different style of encryption, but can be mined by anyone with a CPU which makes the decentralization factor better, although it's not very profitable. But still, I'll trade some power for some coins anyday of the week.
Indeed, taxation is theft and I'm sure these coins will become very useful in the future. At the moment, they attract little investors due to regulation problems though I guess.
Monero doesn't need 'investors' it needs users. It's what Bitcoin should have been in the first place, the true out from the system. It needs more and more businesses accepting it as a form of payment and more people putting their CPU power on the network, whether it's profitable or not, trade some electricity for some freedom. I love that the regulators hate it. Makes me want more of it.
yeah man, it sounds like a good way to opt out of the system.
I'm a big fan of Monero and DERO! When I think in "parallels", what BTC is for crypto in general, Monero is for privacy coins... On the other side, DERO is a privacy alternative for ETH "capabilities"... Unfortunately, people can't grasp the big advantages of privacy coins and that's why the price (and appreciation) is relatively low... But, their time will come, sooner or later... Until then, the perfect time for accumulating them is NOW... 🙂
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That is true. Problem is that people are not coming into the space for the right reasons anymore. Those of us that are here for those reasons are looking at privacy coins as the way. Basically Monero is my BTC now.
I remember the moment when many YT influencers were temporarily banned from YT for a week or so... In just a day or two, LBRY went up like crazy, and privacy coins exploded... As our governments are working toward taking our privacy and freedoms, it's just a matter of time before privacy coins will pump and be adopted... We don't have to do any marketing, governments will... 😃
Exactly.
Thank you for letting us know about Monero
I’d also take a deep look into it because I’ve been hearing of privacy coins for a while now
They are an important piece to the crypto puzzle for sure