Monero - Altcoin Review
In this article we’ll talk about Monero, the cryptocurrency paid to our partners. We’ll present you the features of it and we’ll explain why we believe is one of the most important cryptocoin in the industry.
What is Monero?
As you’ll find on Monero’s official website and other specialized sites, Monero described itself: a secure, private, untraceable and open-source currency. Your accounts and transactions are kept private.
It was released on April 18th 2014 without premine or instamine. The development is completely based on donations, community driven with focus on decentralization. Is gaining popularity day by day because of the innovative way it handles transactions on the blockchain. The source code is a complete rewrite of a blockchain, it is not a fork from the Bitcoin project.
The technology behind Monero is based on CryptoNote algorithm and focuses on transactional privacy.
Think about Bitcoin. You can basically see all the transactions that occurred on the blockchain since the beginning. You can track the exact amount that was transacted as well as the precise transaction origin and destination.
With Monero you cannot track the transactions. All the transactions are processed with the use of cutting-edge cryptographic signatures ring. When a transaction takes place it is mixed in other transactions. Therefore, it is almost impossible to track down a particular sender or receiver. However, each user has the ability to select different levels of privacy.
The developers elaborated two properties which allows fully anonymous transactions:
- Untraceability: for each incoming transaction all possible senders are equiprobable. The sender is not required to cooperate with other users of a trusted third party to make his transactions. Each participant produces a cover traffic independently.
- Unlinkability: for any two outgoing transactions it is impossible to prove they were sent to the same person. A user can publish a single address and receive unconditional unlinkable payments. The destination is a public key, derived from recipient’s address and sender’s random data. There is no such issue as “address reuse” by design and no observer can determine if any transactions were sent to a specific address or link two addresses together.
Monero is powered strictly by Proof of Work (PoW) having the potential to be efficiently tasked to billions of existing devices. The mining algorithm has the potential to cover many years from now, giving the possibility of mining for each individual person (unlike Bitcoin).
The Monero development is gaining new contributors (anyone can join) and all of them are open to discuss the future plans and the long-term direction. Most contributors are passionate for an open-source philosophy.
Most of the cryptocurrencies have a “block size limit” which became a big issue in the cryptocurrency community. Monero doesn’t have a block size limit, it has a dynamic one. This means the limit is automatically calculated based on a look-back-window.
It could be a problem if the block size is limited because the fees will develop and it may not be sustainable if is the main incentive for miners. It’s a known fact: miners are mining the longest chain. But when they do that, they might lose the block reward. If the block reward becomes smaller than the mining fee it’s possible miners will start a fork trying to mine high transaction fees. The solution for this problem is implementing a “permanent block reward”. Therefore, the block reward will never drop below 0.3 XMR. This means the miners will always receive the block reward, with or without a fee market.
CryptoNote is containing a targeting algorithm which changes the difficulty of every block. This method is decreasing the system’s reaction time when the hashrate is growing or shrinking, preserving a constant block rate.
We know that Monero will gain popularity day by day, that is why we believe the Monero network will continuously develop. As long as the community will find out about Monero, it might be the next level of ‘Bitcoin’.
There are more features of Monero, but we resumed only to a few. If you are at least interested as we are in the Monero project, check out this links:
If you’d like to start earning Monero you can do it here