Monero (XMR) is an open-source cryptocurrency that emphasizes privacy and decentralization above all else.
Debuting in 2014, Monero’s main selling point is total anonymity. Unlike other cryptocurrencies such as Bitcoin or Ethereum, Monero transactions cannot be traced or tracked, making it ideal for users who value their online privacy above all else. Monero’s focus on privacy has made it popular on the black market and other people looking to keep their financial activities hidden from the prying eyes of police.
In addition to this, Monero’s egalitarian mining structure makes it one of the easiest and most lucrative coins to mine, with even low-end users able to get in on the action.
Monero’s unique features and potential for growth make it one of the most important cryptocurrencies for any investor to own.
Monero was launched in April 2014 by a pseudonymous BitcoinTalk forum user called “thankful_for_today” under the name “BitMonero,” a reference to both Bitcoin and “monero,” the Esperanto word for coin. The name was shortened to “Monero” not long after. (1) (2)
Monero is based on the CryptoNote protocol, a cryptocurrency design created by pseudonymous author Nicolas van Saberhagen in 2013. CryptoNote was designed to fix a fundamental flaw in Bitcoin and similar cryptocurrencies: while they promise anonymity, it is still possible to track transactions due to the ledger keeping a public record of everything that happens on the network. (3) (4)
Monero fixes this by using ring signatures to obscure spenders’ addresses with a randomly selected group of other spenders, making it far more difficult to narrow down who has conducted which transaction. Additionally, Monero also uses stealth addresses to make it impossible for anyone other than the sender and the receiver to uncover the destination address of a transaction. These features make Monero all-but impossible to trace and track through the network. (5)
Monero saw much of its growth in the year 2016, largely due to its adoption by black market traders, who were interested in its anonymity features. In particular, the popular darknet website AlphaBay used Monero as its primary currency until its shutdown in July 2017. (6)
In 2017, Monero further enhanced its privacy with the adoption of the RingCT protocol, based off of Confidential Transactions, an algorithm created by Bitcoin Core developer Gregory Maxwell. RingCT adds additional protections to Monero transactions by hiding the amounts of money being transacted in each exchange. This change further enhances Monero’s reputation as one of the most secure and anonymous cryptocurrencies available. (7)
Additionally, Monero has gained steam as a means of transaction due in large part to Bitcoin’s increasingly slow transaction times and high fees. Many online vendors that already accept Bitcoin have begun accepting Monero as well. Due to Monero’s unique features, cryptocurrency experts assert that it is one of the most important currencies and the most likely to survive a hypothetical crash in the market. (8) (9)
Even if you have no interest in black market transactions, Monero’s privacy features are worth considering. Given that online anonymity is fast becoming a thing of the past, Monero stands alone among cryptocurrencies in guaranteeing security to the vendors, traders, and buyers who use it.
Monero is perhaps the easiest major cryptocurrency to mine due to its unique, egalitarian design.
In contrast to Bitcoin and Bitcoin-derived currencies, Monero is based on the CryptoNight proof-of-work algorithm, which was explicitly designed to be accessible to a much larger range of computer hardware. While it is still possible to form and join mining pools like with other cryptocurrencies, Monero’s low barrier to entry means that pools cannot monopolize mining like they do with other coins. (10) (11)
Monero is notable in that it is one of the only major cryptocurrencies where CPU mining is still profitable. The official Monero client even includes a CPU miner built in, allowing casual users to mine coins without much effort, though users with access to GPU-enabled computers or an ASIC miner will be able to mine more coins more quickly, as is the case with all other cryptocurrencies. (12)
The egalitarian architecture of Monero allows websites to mine coins by installing services such as Coinhive, which pool the CPU processing power of all users who access the site. Both well-known sites such as Salon and black market ones such as The Pirate Bay have used Coinhive in order to mine Monero by taking advantage of their users’ CPU power. In particular, Salon has sold Coinhive as an alternative to ads, which most users block through the use of browser ad-blocking plugins. (13) (14)
Website Monero mining has come under fire due to the fact that many sites that use it do not inform their visitors of what is happening. Furthermore, cybersecurity experts have cited the possibility of hackers using Monero mining scripts to insert malware into websites and attacking users’ computers. Because of this, many anti-virus and anti-malware programs block Coinhive and other website mining scripts, and script-blocking browser plugins block them as well. (15)
Monero is easily one of the most important cryptocurrencies available today due to its rising popularity and original architecture.
In a world in which users are increasingly paranoid about their online security, Monero provides total privacy to its users, allowing people to conduct transactions without worrying about others spying on them. Monero has continuously added to its security features over the years, allowing it to stay one step ahead of attempts by hackers to crack its code.
While Monero originally had a shady reputation due to its popularity among black market vendors, its privacy and ease of use have made it increasingly popular among the general population. Due to Bitcoin’s increasingly high fees and lengthy transaction times, Monero is rapidly gaining traction as an alternative currency among vendors and merchants.
Monero’s privacy features set it apart from virtually every other cryptocurrency available today and make it a must-have investment for any crypto trader. Its resiliency in the face of a potential market crash makes it one of the top cryptocurrencies available, and its anonymity will further boost its popularity in an era where online privacy is increasingly under siege.