Monero has become popular among crypto users who want to execute transactions anonymously. In this guide, we have explained everything you need to know about Monero and its native token, XMR. Keep reading to learn more.
Exploring Monero
Monero is a network that focuses on offering crypto users much-needed privacy by utilizing advanced technologies like Ring Signatures, Ring CT, and Stealth Addresses, which ensure all crypto transactions carried out on the blockchain remain untraceable and confidential.
Launched in 2012, Monero is a fork of another privacy-focused crypto project called Cryptonote. The network was initially called Bit Monero but was forced to rebrand to Monero after losing community trust due to the developers’ decision to allocate themselves a significant amount of XMR tokens. Like Satoshi Nakamoto, the brains behind Bitcoin, Monero developers remain anonymous.
How Monero Works
Monero is a Proof-of-Work network, meaning it relies on miners to solve complex problems in order to validate transactions.
Now, let’s take a deeper look at the technologies used by Monero:
Steal Addresses: Such addresses provide privacy. Each recipient gets a unique public address every time they receive funds. This address can’t be linked to the fund’s receiver.
Ring Signatures: To hide the identities of parties involved in transactions, Monero uses Ring Signatures. When a transaction happens on Monero, an outside observer is only able to see a pool of addresses, making it impossible to identify what address belongs to whom.
Ring CT: Monero uses this technology to obscure transaction amounts.
What is Special About Monero?
Simple Mining Process: Unlike Bitcoin mining, which heavily relies on expensive and high energy-consuming ASICs, Monero mining largely depends on regular CPUs available in many computers. This makes it possible for anyone to mine Monero.
Bulletproofs: This technology reduces transaction fees and sizes massively.
Comparison: Bitcoin vs. Monero
While Bitcoin and Monero use the Proof-of-Work consensus mechanism, they have several differences, including:
Absolute Privacy: Bitcoin transactions can be traced, while Monero’s are untraceable.
Block Size: To avoid network congestion, Monero adjusts block sizes. Bitcoin, on the other hand, has fixed block sizes.
Decentralization: Since Monero mining is easy, it is accessible to ordinary people, and this promotes decentralization. On the other hand, Bitcoin faces a risk of centralization as only a few individuals have the capacity to participate in mining due to the enormous expenses involved.
Monero Native Token XMR
With a market capitalization of $3.3 billion, XMR is the 26th largest cryptocurrency, according to data from CoinGecko. Further, the token has averaged a daily trading volume of $79 million in 2023.
XMR is used to facilitate peer-to-peer transactions on Monero. It is also used for paying gas fees.
Several analysts are anticipating XMR to experience a price surge over the next three years. They believe that the token will grow to $287.48 by 2026. However, this is just a prediction, so do your own due diligence before buying XMR. If you wish to purchase the token, you can get it from Binance, OKX, and Kraken.
Tokenomics
Like Bitcoin, Monero has adopted a mechanism that reduces block rewards over time. As of this writing, the mining reward per block is 0.6 XMR. This considerably low inflation rate means only $160 worth of XMR enters circulation every two minutes.
Governance
Unlike many crypto projects, Monero has adopted off-chain governance, with proposals being submitted on the developer platform GitHub for the community to vote. Once the proposed code is approved, Monero integrates it into the Core Client.
XMR Wallets
Being one of the largest cryptocurrencies in the market, XMR is supported by several well-known crypto wallets. If you want to store the Monero native token in a hot wallet, you can choose either Trust Wallet, Feather Wallet, or Cake Wallet. As for cold wallets, Trezor and Ledger are perfect choices.
Conclusion
Monero allows people to guard their financial privacy. However, the project’s future is uncertain as several governments demand that crypto transactions be traceable to make it easy to identify illegal financial activities.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.