Home » Digital Currencies » Monero Overview – Secure, Private and Untraceable Currency

Monero Overview – Secure, Private and Untraceable Currency

Happy Saturday, Crypt-o-financers! On my previous post, I provided an overview about Bitcoin. As Bitcoin is one of the first (if not the) cryptocurrency, it has it’s own flaws. One of which is that all the transactions are shown on a public ledger called blockchain. As a result, only the sender’s and recipients identity are hidden, but not the transactions, amounts and wallet addresses themselves. This privacy issue is being addressed by Monero. So here, you’ll have an idea on what’s Monero is all about and how the technology behind this keeps transactions more private (relatively) compared to Bitcoin.

Disclaimer: All images are courtesy of Google, CoinCentral website and Monero website.


Outline

  • About Monero
  • Technical Details
  • Characteristics
  • Monero vs Bitcoin
  • How Monero Achieves Privacy
  • Monero Fork
  • Monero Cons

About Monero:

  • fork of Bytecoin
  • 3 Key Values: 1) Security 2) Privacy 3) Decentralization

Monero logo

Technical Details:

Launched: April 14, 2014

Total coin supply: Initially 18.4 million coins (After this, there will be a permanent fixed production of 0.3 XMR per minute to balance out lost coins per year)

Algorithm: Proof of Work (PoW) using CryptoNight

Block reward: Smoothly varying

Block time: 120 seconds

Difficulty: Retargets at every block

Reference: https://files.coinmarketcap.com/static/widget/currency.js

Characteristics (courtesy of Monero Website):

1. Private and Censorship-Resistant Transactions

  • uses cryptography to hide sending, receiving addresses and amounts transacted

Cryptography (Wikipedia) – process of converting ordinary information (called plaintext) into unintelligible text (called ciphertext)

Monero is Private

2. Confidential and Untraceable

  • Monero will always be accepted without the risk of censorship

Monero is Untraceable

3. Open Source

  • not owned by a corporation, volunteers all over the work dedicate their time and effort to work on the project

4. Allows Fast, Electronic Payments

  • fast transactions, no risk of fraudulent chargebacks

Monero is Digital Cash

5. Other Features

  • Block limit is 0.3 XMR (monero) per minute
  • Scalable
  • has selective transparency – allows users to make certain transactions visible if desired
  • uses ring signatures, ring confidential transactions (RCT) and stealth addresses to keep transactions private to protect both senders and receivers from prying eyes
  • variety of desktop wallets, mobile and light wallets available for Monero

 

Bitcoin vs. Monero Comparison (courtesy of Coincentral)

 

Bitcoin vs Monero

  Bitcoin Monero
Privacy Measure ·         Hide sender and recipients identity ·         Privacy turned on as a default setting
Anonymity ·         Can be de-anonymized by blockchain analysis companies ·         Untraceable transactions are part of the protocol
Fungibility

(coin differentiation)

·         Subject to being tainted

·         If an exchange has been hacked, or funds stolen, hacked or stolen coins can be tracked and blacklisted by other exchange companies, making the funds unspendable – not ideal for the digital cash concept

·         Can’t be tainted
Ease of Hard Forks ·         Difficult – lack of flexibility when updates are needed, which requires almost complete network update ·         Easy – has a policy of hard forking every 6 months, giving users a fair warning to users to upgrade their software
Block Size Limit ·         Hard capped ·         Dynamic

How Monero Achieve Privacy?:

1. Ring Signatures protect the sender

2. Ring Confidential Transactions (RCT) hide the amount sent

3. Stealth addresses protect the recipient

Monero Forks:

1. Monero Zero (XMZ)

2. Monero Original (XMO)

3. Monero Classic (XMC)

4. Monero-Classic

5. Monero C (CXMR)

6. Monero V (XMV)

Monero Forks

 

Monero Cons:

  • Privacy – transaction originating IP addresses can still be tracked
  • Mining can’t be completely decentralized – currently, there’s only 4 mining pools available
  • Darkweb negative publicity – as a private currency, most are under the impressions that it’s used as an alternative currency for hidden transactions done in dark web
  • Network congestion due to large transaction size
  • Development Challenges  – can’t be readily incorporated to multicoin wallets
  • Limited Merchant Tools – making this a viable payment option

To conclude this, I can say that Monero is a viable alternative to Bitcoin when it comes to private transaction as it focused on Bitcoin’s flaws when it comes to privacy. True enough, due to great innovation put into this, people start to see it’s potentials and view this as a convenient digital currency that they can use. Currently, Monero is valued at around $200.00

I would like to thank Coincentral for providing me great material, content and references for this blog posts – an independent publication covering news and information on cryptocurrencies such as Bitcoin, Ethereum and their underlying blockchain technology. They currently have more than 2.7 million visitors/month, after being launched just 5 months ago. If your interested in getting updated cryptocurrency news or information, you can subscribe to their newsletter here.

I hope you enjoyed reading though this Crypt-o-financers. Let me know in the comments section below if you like more content like this. Expect new blogs every Saturdays. Feel free to follow this blog if you’re a WordPress user. If not, you can subscribe via e-mail using the form below to receive updated notifications each time a new blog has been posted. You can also join our Facebook group Crypt-o-finance.net to get blog post updates and more. If you’re generous, you’re welcome to donate via Paypal so I can continue to deliver quality content.

For a detailed visual overview, click the links or watch the videos below.

More videos:

Monero Overview:

Monero Essentials: 

Monero Stealth Addresses:

References: (for detailed information, click on the links below).

All images courtesy of Google, Coincentral and Monero Website

Coincentral – 

https://coincentral.com/monero-vs-bitcoin/

https://coincentral.com/what-is-monero/

Monero Website –

https://getmonero.org/get-started/what-is-monero/

3 thoughts on “Monero Overview – Secure, Private and Untraceable Currency

  1. Thank you very much for following me. Hope you will enjoy my blog. 😊

    1. It’s my pleasure. Thanks for following my blog as well!

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