What is Monero (XMR)? Privacy Coins To Keep Users Safer

Bittime - Monero (XMR) is a crypto asset with a focus on privacy and uncensorable transactions. In the world of digital assets, Monero stands out for its unique ability to keep user data private.

So, this article will discuss in more depth what Monero (XMR) is, how it works, and the tokenomics of the XMR token. Curious? Come on, stay tune!

How Does Monero (XMR) Work?

Monero implements several advanced technologies to guarantee the privacy and anonymity of its users. Two important concepts used are hidden addresses and ring signatures.

Hidden Address

Hidden Address (ahidden address) allows the sender to generate a disposable public address on behalf of the recipient each time a transaction is made. However, recipients can still use one public address to receive all their payments. 

Each Monero user will generate a private view key and a private spend key. The private view key allows them to view all transactions associated with their account. 

Meanwhile, private spending keys are used to authorize payments, similar to Bitcoin private keys.

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Ring Signature

Ring signature is a concept from general cryptography and refers to a digital signature that can be signed by members of a particular group. They are the members who own the private key. 

When you make an XMR transaction, your Monero wallet forms a ring of other users' keys taken from the blockchain. For anyone observing, it is impossible to know whose key was used to sign, making the transaction anonymous.

In January 2017, Monero introduced Ring Confidential Transactions (RingCT) which also hides transaction values.

History of Monero (XMR)

Monero (XMR) is a privacy-oriented, open-source crypto asset that was launched in 2014. The Monero blockchain is intentionally configured to be opaque and hide the origin, amount, and details of transactions by masking the identity and address of the sender and recipient. 

Monero's origins are somewhat mysterious, as its original developers chose to remain anonymous. The project's launch in 2014 was led by someone known only as "thankful_for_today," as an offshoot of Bytecoin. 

Bytecoin is a privacy-focused crypto asset launched in 2012 that aims to provide anonymous and untraceable transactions with Monero-like features.

"Thankful_for_today" left the project shortly after, and development of Monero was taken over by a group of anonymous developers. This team, led by Riccardo Spagni, a software engineer from South Africa. 

Known by the username "Fluffypony" online, he continues to improve the crypto asset's privacy features and introduce additional enhancements. An example is the CryptoNightV7 cryptographic algorithm.

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What Makes Monero (XMR) Unique?

While Monero's anonymous developers and open-source codebase may sound similar to Bitcoin, there are some big differences – one of which is the way updates are handled. 

While Bitcoin is somewhat reluctant when it comes to forks, with even the simplest upgrades requiring lengthy discussion periods before being implemented, Monero's software is programmed to update automatically every six months.

In 2018, Monero became the first major crypto asset to implement technology known as “bulletproofs.” This significantly increases the efficiency of XMR transactions. 

It also leads to at least an 80% reduction in average transaction size and dramatically reduces costs for end users.

While there are many other privacy coins, Monero is probably the best known and has the largest market capitalization. Monero also offers privacy by default, unlike some alternatives like Zcash where this feature has to be enabled manually.

What Makes Monero (XMR) Valuable?

For most users, Monero's value comes from its privacy and anonymity. Monero offers the opportunity to make crypto transactions at any time for any reason. 

This can be done without worrying about being monitored by the government, hackers or other third parties. XMR coins also cannot be blocked by companies due to suspected criminal ties, as there is no way to actually track them.

In addition to its usefulness as a medium of exchange, Monero may also have value for investors who believe that demand for privacy will increase in the future and drive the price and overall market capitalization of XMR.

Tokenomics Monero (XMR)

Currently, XMR has a circulating supply of 18,445,343. Monero will have a total supply of 18.4 million XMR which is expected to reach in May 2022. 

However, there is no true maximum supply because after this point Monero will continue to issue 0.6 XMR per block indefinitely in a process known as “tail emissions,” to maintain incentives for miners to power the network.

Conclusion

Monero (XMR) has proven itself to be a superior crypto asset when it comes to privacy and security. With various advanced technologies that guarantee user anonymity, Monero offers a solution for those who want digital transactions without the risk of being monitored. 

With a history full of innovation and a dedicated developer community, Monero is poised to continue to grow and become a mainstay in the ever-changing crypto world. 

That's a review of what Monero (XMR) is. Hopefully this can help understand this crypto asset, OK?

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