What is Monero?
Monero (XMR) is an open-source cryptocurrency with a focus on private and censorship-resistant transactions. Unlike other cryptocurrencies such as bitcoin and ethereum, which have transparent blockchains, Monero uses cryptography to shield sending and receiving addresses, as well as transacted amounts.
“Monero is a secure, private, and untraceable cryptocurrency. It is open-source and accessible to all. With Monero, you are your own bank. Only you control and are responsible for your funds. Your accounts and transactions are kept private from prying eyes,” according to the company’s website.
Monero uses three different privacy technologies: ring signatures, ring confidential transactions (RingCT), and stealth addresses. They hide the sender's identity, the amount transferred, and the identity of the receiver of the transaction, respectively. it’s guided by three major values: security, privacy and decentralization. The platform desires users to trust them with forwarding transactions, without a risks of errors or attacks.
The cryptocurrency is also serious about its privacy. The platform seeks to protect users in a court of law and, in extreme cases, from a death penalty.
Monero is committed to providing the ultimate amount of decentralization. An accessible “Proof of Work” algorithm makes it easy to mine Monero on standard computers, which makes it more difficult for someone to purchase large amountы of mining power.
Launched in April 2014, Monero was a fair, pre-announced launch of the CryptoNote reference code. The community however disagreed with some of the founder’s controversial ideas, resulting in a new core team taking over, and providing the oversight since then.
Monero was launched by a Bitcointalk forum user only known as "thankful_for_today" under the name BitMonero (a compound of Bit (as in Bitcoin) and Monero, meaning "coin" in Esperanto). Five days later, the currency's supporters opted for the name to be shortened to simply -Monero.
Since its original launch, the blockchain has migrated to a different database structure to provide greater efficiency and flexibility. Furthermore, minimum ring signature sizes have been set to make all transactions private by mandate, and RingCT has been implemented to hide the transaction amounts.
Monero Fork in October, 2018: Stronger Privacy and Faster Speed
Monero (XMR) transaction fees have fallen a massive 97 percent, dropping from 60 cents to just 2 cents according to information from analytics firm CoinMetrics.
monero: RT @stunad620: $XMR fork with bulletproofs has created:— Monero Farm (@monerof) October 21, 2018
- over 80% reduction in tx size
- over 96% reduction in tax cost
- and zero effect on the standalone privacy of the @monero network.
-congrats @fluffypony 👌🏻 https://t.co/tnYK59KSiI
Correspondingly, the average transaction size fell by more than 80% - from 18.5 KB to 3 KB.
The drop follows a successful execution of Monero’s hard fork on October 18. The upgrade, called “Monero 0.13.0 Beryllium Bullet,” implements "bulletproofs” - a cryptographic scheme that shrinks the size and cost of transactions.
On October 18 Monero reported on its Twitter account that the network had been successfully updated.
The scheduled protocol upgraded went successfully and Monero compatible Bulletproofs are thus live on mainnet! 🎉— Monero || #xmr (@monero) October 18, 2018
The improved protocol allows for stronger privacy, cheaper and faster transactions, and greater ASIC miner resistance.
Monero developers strongly recommend that everyone upgrade their wallets and nodes if they haven’t done so already, as running the old version could lose transactions.
According to price tracker CoinMarketCap.com, Monero has a total market cap of over $1.7 billion and a daily transaction volume of $20 million.
Monero may be purchased on a number of exchanges using fiat or other cryptocurrencies.
Mining on a pool with xmr-stak-cpu
Mining on a larger pool could mean more frequent payouts, but mining on a smaller one helps to keep the network decentralized. The list of pools is available at moneropools.com. There is also a large number of miners to choose from. For details on pool mining click here.
Solo mining with the GUI
Monero relies on proof-of-work mining to achieve distributed consensus. There are currently no ASICs for Monero, which means that anyone with a computer can mine it. It is best suited to CPU and GPU mining.
Its extremely easy to solo mine Monero with the official GUI, which can be downloaded from Monero downloads page.
Monero’s blocks are produced on average every 2 minutes, the reward per block is 4.47 XMR.
Mining with Docker and XMRig
To mine with XMRig, run the following:
Docker is also being used as it is the most well-known miner.
Monero is stored on an account, which is based on two distinct cryptographic keys: the spend key and view key (both are 64-characters long) The spend key is the only key required to authorize the transfer of funds of a Monero account, while the view key provides access to view (but not spend) the balance of an account.
The easiest way to store Monero is via the online-wallet MyMonero, a service providing free hosted Monero accounts. It was developed with the assistance of the Monero Core Team, and is managed by Riccardo "fluffypony" Spagni, one of its members. The account can be accessed from any device with the private login key. MyMonero never knows the user’s private login key, all of the private cryptography is done locally on the user’s device.
The best and only Monero desktop wallet is the official client which is a full node. It can be downloaded from the official Monero website. The Monero community has funded a Dedicated Hardware Wallet which is now operational. Besides, Ledger is working on integrating Monero into their hardware wallets.
What to buy using Monero
Merchants of all kinds have come to value the financial privacy that Monero brings and many are currently appreciating Monero for their goods and services. Below are some of the businesses that accept the cryptocurrency.
Azur Samui – a luxury resort consisting of 61 luxurious apartments and pool penthouses and 26 private pool villa residences located in Koh Samui, one of Thailand’s tropical islands.
Abaco Hosting – an Internet services company that offers solutions for small and medium businesses, from Email Hosting, GeoLocated Hosting Linux & Windows, Reseller, VPS, Cloud, Wordpress Hosting, SSL, Security, Servers and a portfolio of +500 domain extensions available.
Computer Lab – a software consultancy and research group based in New York City.
Gomojomarketing – a marketing team that provides small businesses and startups with the resources of a full-scale marketing team with experienced consultation, strategy, and reporting
Crypto Whale Clothing – offers a large collection of crypto-themed clothing.
Red/Cedar – a digital marketing company that builds website solutions that help clients drive business performance and cultivate long-term relationships with their most valued customers.
City Map – a company that provides high quality and unique city map themed decorating options for any space that needs fresh decor.
Lynx art collection – offers intriguing pieces of art that are designed to spark a conversation.
Kidsweet – an all-natural ultra-low-carb plant-based sweetener that's easy to use and tastes like sugar!
Check-coin – a new generation online store that offers goods for cryptocurrency.
How is Monero different from bitcoin?
Monero is not based on Bitcoin. It is based on the CryptoNote protocol. Bitcoin is a completely transparent system, where all transactions can be tracked, while Monero hides this information to protect user privacy in all transactions.
The Bitcoin algorithm runs dramatically faster on custom made mining chips, known as Application-specific integrated circuit chips (ASIC’s) than on standard PCs and laptops. In contrast, the Monero mining algorithm was specifically designed so ASICs do not have a significant advantage over ordinary computers owned by the general public.
Monero’s blocks are produced on average every 2 minutes, while Bitcoin blocks are produced on average every 10 minutes.