Monero

#10
Price: $103.947653724
Change(24h):
-0.26%
Volume(24h): $18,035,154
Market Cap: $1,714,792,765
Monero is a decentralized open-source cryptocurrency focused on privacy. It was created in 2014 as a fork from Bytecoin by an anonymous developer. Written in C and C++, Monero is a minable coin based on the CryptoNote protocol. It offers completely private transactions, with separate technologies to keep both the sender and the recipient anonymous, as well as to conceal the transaction amount. Thus, it has been attracting many outlaws among its supporters. Privacy makes Monero fungible, just like cash. XMR has no supply cap.

Minable: Yes

Coin Prefix: XMR

Type: Coin

Latest Hight: $298.08

Monero Markets

# Source: Pair: Price:
1
Bithumb
XMR/KRW
$103.805309734513
2
HitBTC
XMR/USDT
$104.62522760218
3
Poloniex
XMR/BTC
$104.28354471926
4
Binance
XMR/BTC
$104.503432917007
5
HitBTC
XMR/BTC
$104.716665668276
6
HitBTC
XMR/ETH
$104.757786144518
7
Bitfinex
XMR/BTC
$104.477586522914
8
Bitfinex
XMR/USD
$105.86
9
Bittrex
XMR/BTC
$104.039748606977
10
Kraken
XMR/EUR
$103.373891277435

 

Monero - The Leading Privacy Cryptocurrency

 

• Area to disrupt: Private and untraceable transactions, Money transfers

• Competition: Zcash, Bytecoin, Dash, Verge, Bitcoin Private, PIVX, ZCoin

• Founded by: thankful_for_today

• Based in: ---

• Total supply: unlimited

Monero official logo

 

Did You Know that XMR Price All-time Low is USD 0.25?

As of mid-June 2018, Monero (XMR) is the 14th biggest cryptocurrency based on market capitalization. This makes XMR the leading privacy-focused digital coin with a trading price of around USD 135.

Monero started trading in May 2014 and just a month later, on June 21, 2014, it was changing hands for more than USD 5. However, this was the time when the bear trend started for the whole crypto market and prices began to fall. During the whole 2015 XMR was trading for less than a dollar, reaching its all-time low of USD 0.25 in the middle of February.

At the end of 2016, Monero began to gain more and more supporters thanks to its privacy features and during the crypto craze in 2017 surged from USD 85 in October to its current all-time high of USD 495 on January 7, 2018.

Monero does not have a fixed money supply cap like Bitcoin (BTC). Once the total amount of XMR in circulation reaches 18.4 million, which is planned to happen at the end of May 2022, the release of new coins will stop declining and stay at a constant rate of about 157 680 XMR per year.

 

The Origins of Monero

Monero was launched in April 2014 as a fork of Bytecoin (BCN). Bytecoin is a very controversial privacy coin. Its creators claim that BCN was up and running since April 2012, but as none had heard of it before 2014, they claim it was used only on the deep web (those parts of the web that are not indexed by search engines). However, the bitcointalk user ‘rethink-your-strategy’ conducted an investigation, which gained a lot of popularity, revealing that Bytecoin creators were making false claims and actually BCN was created in March 2014.

According to the investigation, the reason they were lying that BCN was on the deep web for two years was to justify that 82% of all BCN tokens in circulation were mined during these years, while in fact they were pre-mined.

So, it was decided that the Bytecoin blockchain will be forked and the newly created coin will be called Bitmonero (BMR). BMR was forked on April 18, 2014. However, the founder – dubbed ‘thankful_for_today’ – made some controversial changes that the community disagreed with and after just five days the community took control over the coin, removing the ‘Bit’ from its name.

Since then, Monero is one the most credible privacy coins in the market.

As of mid-June 2018 the Core Team consists of seven people, but only one of them has shared his real identity. It is important to point out that the Core Team does not equal Monero. It has a number of responsibilities such as to manage the codebase of the project and set a direction and vision for Monero, but does not act as a centralized point of failure.

 

What Exactly is Monero and Why It Is a Top 15 Coin?

Monero is a privacy coin, which means that it provides private, secure and untraceable transactions. Monero is built around some important guiding philosophies, namely security, privacy and decentralization.

It is electronic cash that allows fast, inexpensive payments to and from anywhere in the world and most importantly – its transactions are confidential.

XMR is designed to be an alternative of Bitcoin where the blockchain is transparent, which means that anyone in the world could trace and verify the transactions on the network. In addition, in some cases the real-world identity of a person may be linked to the sending and receiving addresses on the Bitcoin network.

With Monero, this is impossible, because XMR uses cryptography to shield that data. Complete anonymity usually correlates to shady deals, crime and lawlessness. And there is no doubt that many people use Monero to buy illegal stuff on the darknet. However, its use cases do not end there. For example, XMR can be used from corporations to transfer capital or by businesses as a payment method – to hide from their competition how many customers they have or don’t have.

There always will be a need for anonymous peer-to-peer money transfers because of the human nature. People just doesn’t want to share how much money they spend or what they spend it for. No matter if we are talking about buying a house, a sex doll, or marihuana.

For that reason and because Monero has a large and supportive community, great coders, and very reliable technology – it is the leading privacy cryptocurrency on the market at the moment.

 

Technology

Monero uses CryptoNote - the application layer protocol that various privacy coins are built on. XMR is one the first projects that use this technology and it utilizes the same values every CryptoNote coin does – privacy, decentralization and last but not least - fungibility.

To be a fungible asset means that every unit of the currency can be substituted by another unit. To better illustrate this we will give you an example with Bitcoin. Let’s assume you bought 1 BTC that was used in some illegal transaction in the past. This ‘criminal’ link will forever be imprinted in its transaction details.

That’s why the Bitcoin you have purchased may be blacklisted or refused by other users if they go through its transaction history. This means that your BTC is not worth as much as a ‘clean’ BTC, hence Bitcoin is not fungible.

Monero is fungible simply because its transactions are untraceable by its nature. What makes XMR completely private are three specific features of its architecture.
1. The Ring Signatures, which maintain the privacy of the sender.
2. Confidential Addresses a.k.a. Stealth Addresses, which maintain the privacy of the recipient.
3. Ring CT a.k.a. Ring Confidential Transactions, which maintain the privacy of the transaction.

 

Ring Signatures

In order a transaction to be sent on the Monero network it has to be signed by the sender. Just like you have to sign a check before sending it to your friend Tony. However, when you send a check to Tony he can turn it into cash because when he goes to the bank, the bank will see that the check is signed by you. And of course that you have the needed amount of money in your bank account.

But don’t forget that Monero is all about privacy. So, how your identity may stay in secret if you want to send money? By merging your signature with the signatures of complete strangers, so you together can produce a distinctive signature that authorizes the transaction.

I know it may sound confusing, but actually it is very simple.

Suppose, you want to send 10 XMR to your friend Tony and stay anonymous. In order to do that you combine your output with four other arbitrary past transaction outputs from the network, which act as decoys, to form a ‘ring’. The fake outputs are equal to your 10 XMR output and all five together make a disguised input of a transaction.

Think of it like this. If your transaction output is the US president Donald Trump traveling to a G8 meeting in black windowed limousine, the four random outputs are four Secret Service agents, each of them traveling in the exact same limousine, so in case of a terrorist attack, the terrorist may not be sure in which car the president is. All outputs (limousines) appear equally alike to a third party (a terrorist).

You as a user may decide how many random outputs to put in your ring signature. The bigger the ring size, the bigger the transaction, hence – the higher the transaction fees. Also – you don’t need to ask the owners of these previous transactions for their permission to use their signatures. Just like Trump will order to those agents to get in the limousines without asking for their permission.

But if a third party can’t see which output is being spent what would prevent someone to spend the same output twice? Every transaction in Monero comes with its own unique key image, being only one for every transaction. That’s why miners can easily check if XMR was double spent or not.

 

Stealth Addresses

One of the biggest features which brought popularity to Monero is transaction unlinkability. Basically, this means that if you want to send XMR to your friend Tony, you two are the only people who will know that this transaction happened.

We already found out how your privacy is protected, but how Tony’s privacy is ensured?

A Monero wallet address consists of a Public View Key and a Public Spend Key.

When you decide to send XMR to Tony’s wallet, you use both of his keys to generate a unique one-time public key for Tony’s new output.

This one-time public key generates a one-time public address called ‘stealth address’, which only Tony can find and retrieve the output by his wallet through his private view and spend key.

To simplify, when you decide to send XMR to Tony, you are basically putting a digital chest on the blockchain. Everyone can see that there is a chest, but no one knows where exactly it is hidden, who sent it and what is inside it. Tony is the only one who has a map to its destination and a magic key to open the chest and collect the ‘treasure’. And of course – no one will see him while he is doing that.

 

Ring Confidential Transactions (Ring CT)

So far we understood how the sender and the recipient may stay anonymous but how exactly the transaction amount itself remains hidden? How no one can see what is inside the chest?

As you may guess – the answer is through Ring CT. Ring CT was implemented in January 2017 and after September 2017, this feature became mandatory for all transactions on the network.

Prior to the implementation, Monero required transaction amounts to be split into specific denominations. For example, an output of 12.5 XMR would be broken up into three separate rings in the amounts of 10, 2 and 0.5 XMR. But this process had a weakness - a third party was able to see the amount transacted.

Now, when new Monero is transferred for the first time, Ring CT outputs with masked amounts are generated. As a result, transactions no longer need to be broken down into different denominations. Instead, a wallet is free to pick ring members from any Ring CT outputs. This makes it impossible to tell the value of a specific transaction.

 

Monero May Be a Great Investment

As we said earlier, people will always need a secured and completely private way to transfer money. This is exactly what Monero seeks to be – truly private and decentralized electronic cash. Its supportive and growing community, combined with the great team of coders, the reliable technology and the human need for financial privacy may be a perfect combination for a good long-term investment.

Every investor should have a diversified portfolio. In the context of cryptocurrencies, this means that it could be good to invest in different types of coins. For example, peer-to-peer electronic cash like Bitcoin or Litecoin, smart contract platforms like Ethereum, EOS or NEO, cross-chain platforms like Wanchain or ICON, privacy coins like Monero, ZCash or Dash, etc. This way you can diversify your risk.

Privacy-focused cryptocurrencies are the ones that have real-world use case and are not just treated for speculation. Many people actually use them as a medium of exchange and a payment method. Probably most of them to buy illegal stuff, but people will never stop doing that.

The point is that these assets solve a problem and satisfy a need which people have and probably will always have. That’s why it may be good for an investor to have exposure to this kind of coins. The question is which one to choose, because there are already many out there.

As of mid-2018, being the leading privacy cryptocurrency, Monero could be a good bet.

 

Description text: Lyubo Zhechev
(The views and opinions expressed by the contributor in this text should not be considered financial advice, neither treated as an expression of Coins.Online’s view.
Cryptocurrency trading and investing is risky and market participants are advised to always conduct a thorough research.)

 

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