Monero (XMR) Coin Review (UPDATED 2018): What is It? | VKOOL

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What is Monero?

Monero is a cryptocurrency used for private transactions that are untraceable and only known about from the sender and recipient. This is known as XMR and it was released in 2014.

The total average block time is 120 seconds and is considered a quickly transacted form of cryptocurrency. It forked from Bytecoin and uses many forms of privacy protocols to prevent the knowledge of its transaction history.

Improvement over Bitcoin

With Monero there is more customization than what can be expected from Bitcoin. They have a large window for transaction sped which cannot be modified.

With Monero miners open up a ledger where transactions are recorded. This uses what is known as proof of work algorithm which allows miners to make changes and use the network as they see fit.

Bitcoin is much more limited and results in potential double spending where multiple transactions are sent due to the lack of speediness. This long transaction time can make it difficult to process trade which can result in overspending or a lack of funds.

Bytecoin Fork

A member of the core team at Monero has said that Bytecoin had premining which increased the potential for issues with a proper ledger. Without proper documentation it’s impossible to verify for certain if the coin offered wasn’t already given to select people.

Fundamentals of Monero

With Monero the keys are kept privately by the user instead of stored elsewhere where it is prone to potential hacking. They also have security measures which ensures that transactions are unknown to outsiders.

Instead of having completely visible transactions like that of Bitcoin, this is hidden by preventing the whereabouts of your IP address.

With ring signatures there is one time key sent to the person receiving the transaction, and this key is only available and knowable by the recipient. Because they only allow for one key to be used, this also limits the possibility for possible repeat spending.

The information send to miners is limited but enough to have it shown on ledger without revealing what was sent or to whom.

With stealth address the whereabouts of which wallet it was seen to is not known. However the public key can be shown in the case of an audit to form that this transaction occurred. After all this is said and done, there is nothing connecting the recipient and sender.

How Monero Works

On a web forum there was a clear depiction of how Monero is set up for transactions which you can review in the image featured below.

If Bob wants to spend an output this would require 1, 2 and 3 in the form of Extra, a TxOutNumbe and the account private key to secure the one-time key seen in figure 4.

Once Bob sends to carol  as in figure 4 the extra value is modified at random like in figure 5, then allowing the use of what’ s depicted in number 6, 7 and 8, in order to get a hold of the Output key. At this stage number 10 occurs where Bib is able to hide the link. In order to stop the possibility for repeat spending he provides the Key image from the one-time key seen in figure 11.

This transaction is then signed off on by Bob as in figure 12, 13 and 14. This finally completed as in figure 15 where the ring signature or as it's known a digital signature is signed off on, finalizing the entire transaction securely.

Differences in Privacy

Monero uses CryptoNote which is different than what other privacy cryptocurrencies offer.

Zerocoin/Zerocash

There is also the ZKP or zero-knowledge proofs which prevents anyone from knowing the sender. It’s a lesser known cryptography and it may require additional measures to ensure safety is protected.

 

CoinJoin

This does not conceal the recipient, sender what kinds of transactions occurred within protocols. This is most popularly used by the cryptocurrency Dash. There is some criticism that this may cause a single point of failure.

The head of Litecoin Charlie Lee also commented on why he preferred Monero over other privacy coins like Zcash:

Monero vs Bitcoin

Bitcoin is still a major form of online currency that is the priciest and most widely used cryptocurrency. This has fluctuated in price and at this time has a high of $10,057 USD. Many retailers offer purchases made with Bitcoin, and they are most distributed in all marketplaces and ATM’s when it comes to crypto.

Monero vs Zcash

Zcash uses cryptography and a way to modify your privacy settings to send transactions with limited known information. You can customize it to only reveal things like the amount sent, who it was sent to, or it can be transacted with full privacy. The tram has made their system in order to build from the ground up, offering dedicated security.

Monero vs Dash

Dash offers privacy and quick transactions which are made safe via the use of over 4,500 web servers. Their peer-to-peer transactions are fully decentralized and already used by a few different marketplaces. They have a current value of $694.35 USD and have had a previous high of over $1,400 USD.

Monero vs Ethereum

Ethereum is widely used and a popular form of cryptocurrency that offers a high value. Since it was released in 2015 it has offered a way to offer a complete ledger without a 3rd party. This is currently valued at $943 USD. This uses what’s known as the Ethereum platform and it is high in its market cap, second only to Bitcoin.

Monero vs Verge

Verge or XVG is also used for anonymous transactions. They offer a free web wallet and they offer transactions is 5 seconds or less. This is fully decentralized and open-source, and offers a block time of 30 seconds. They are available on many different exchanges including Binance, Bittrex, Litebit, and Tradesatoshi.

Monero FAQ

  1. What Monero wallets exist?
    Different options exist like the MyMonero web wallet or cold storage on a USB drive.  The makers mention all the available wallets on the official website.
  2. Where can I convert Monero to USD?
    If you’d like to see the conversion any site like coingecko.com or coinmarketcap.com offer free information about the conversion.
  3. What is the official Monero Reddit page?
    You can find it here: https://www.reddit.com/r/Monero/
  4. What is a good Monero mining calculator?
    You can find free resources and recommended calculators on their official website here: https://www.monero.how/monero-mining-calculator
  5. Is Monero mining worth it?
    As long as you have a decent rig and don't mind spending electricity, there is still a lot of unmined coin.
  6. Where can I find Monero news?
    Reddit, their official website, and any major cryptocurrency news websites.
  7. What is the current Monero coin price?
    Many marketplaces have their own set price but at this time it ranges from the $300 to high $290.
  8. What’s a good source for a Monero chart?
    You can view the historical data and current trends on websites like coinmarketcap.com.
  9. Where can I buy Monero?
    This includes Bitfinex, Bithumb, HitBTC, Poloniex and many other marketplaces.
  10. What’s a solid Monero exchange?
    This depends on numerous factors but you can find it on Bittrex Binance, Poloniex, Kraken, and many other exchanges.
  11. Where can I convert Monero to INR?
    Any major exchange will offer this as long as they specialize in alt coins like Bittrex.
  12. What’s the Monero price in USD?
    At the time we reviewed it Monero was at $292.19 USD.
  13. Where can I find the Monero coin whitepaper?
    You can find all the necessary information on their website here: https://getmonero.org/resources/research-lab/
  14. What is a solid Monero coin price prediction?
    No one can vary for certain but Monero has enjoyed a climb in popularity and value.

Summary

Monero has received a lot of acclaim for its full privacy and ability to fully ensure there is no outside intervention when it comes to transactions. With Monero people can hide what was sent, to whom, and from whom without having to set up any kind of changes to their spending habits. This also has increased widely in value, and it’s a frequently mined coin in the crypto community.

Monero has also been able to secure a lot of support from users, and the tam is active on social media to answer questions. The website provides a full outline of all the necessary information, and they make it clear as to what kind of value Monero can offer. Many recommended wallets are also highlighted on their official website, and many marketplaces offer it in exchange for other crypto. There is no doubt that Monero is a major leader in the world of privacy coins.

Peter Lehmann

Peter is a blockchain investor and cryptocurrency writer at Vkool.com. Since 2014 Peter has advised blockchain startups and ICOs on content marketing, strategy and business development.

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