What is Monero? – Cryptocurrency
There are a lot of cryptocurrencies out there. However, I’m in the mood to discuss privacy and anonymity in the cryptocurrency world. What cryptocoin defines stealth better than Monero?
Let’s talk about it, shall we?
What is Monero?
Launched in 2014, Monero is the currency of choice where anonymity is concerned. The major focus of its developers and community is to optimize its codebase to guarantee a higher level of privacy. This has slowly made it one of the top cryptocurrencies in the world right now.
In a quest to increase the level of privacy, the developers paid little attention to the cosmetic factors associated with other cryptocurrencies such as DASH. This is responsible for Monero being downplayed and overshadowed by alluring altcoins. Regardless of this, this digital currency has slowly earned the reputation of dependability.
Why People Use Monero
While Bitcoin’s blockchain and other cryptocurrencies are practically public ledgers, Monero is opaque in nature. Here is the thing, information that’ll connect you to a specific address is leaked every time you use Bitcoin and other digital currencies. This makes you trackable.
However, Monero has a default privacy level that is beyond its competition. As a result, it is used for all forms of Darknet trading and other privacy-oriented dealings.
There are a variety of services offered by Monero. These include;
- Online monetary transaction
- Trade for other cryptocoins on Poloniex or ShapeShift
- You can mine it
Note that, Monero’s algorithm is designed to uphold the viability of CPU mining.
How Monero Protects Your Privacy
Monero uses different complex cryptographic techniques in increasing your level of privacy. Let’s examine some of these techniques below.
The most popular privacy concerned with most cryptocoins is addressed re-usage. This means, any time you receive multiple payments via one address, you are at risk. Anyone can know the address and monitor your outgoing and incoming transactions.
With Monero, the destination addresses are obscured in its blockchain. This implies that only the sender and recipient will be able to identify them. It doesn’t matter which analysis is executed, the blockchain will never reveal the destination address used in receiving your funds.
Instead, what the analyst will see a cryptographic hash that can only be deciphered by the sender and the recipient. Only you can use the hash to reveal an actual destination address. That’s why they are called stealth addresses.
These are the advanced system of guaranteeing user privacy by mixing transactions. Here is how.
Monero’s addresses are specialized forms of cryptographic public keys and the money linked to the address can only be moved using an equivalent private key. This makes it impossible to identify the user through a specific IP address.
Separate Transaction Unit
XMR sent to a particular address is delivered on different discrete payment units, which are recorded on the blockchain as being transferred to different stealth address. I have confused you, haven’t I? Let’s use an illustration to make it easier.
If you send 18 XMR to Chinedu, it’ll be delivered as a separate unit of 10, 5 and 3 XMR. Each of this unit will have its own stealth address. Thus, making it untraceable.
On a Final Note
Monero offers the same level of benefit as all other altcoins. These are, pay for goods purchased and services rendered. However, it offers the added benefit of offering privacy.
If for one reason or another, you are interested in an obscure online monetary transaction, Monero is the cryptocoin for you.