Monero (XMR) has been around since 2014 and has already become a major player in the cryptocurrency world. While many of its rivals have stumbled along the way, Monero has gone from strength to strength. Let’s take a look at why.
The appeal of cryptocurrency to many has been its perceived ability to keep transactions private and maintain user anonymity. However, this has not always been the case. Bitcoin, the name synonymous with cryptocurrency, keeps user identity anonymous but allows transactions to be publicly available on the blockchain, meaning they are traceable. Other cryptocurrencies, such as Zcash, have optional privacy settings which users aren’t adopting to their full extent. Where Monero differs is in that it is automatically private.
Monero uses ring signatures to maintain user privacy. In effect, the user’s signature is combined with other non-user signatures, which act as a decoy. These non-user signatures are old transactions from the blockchain and are indistinguishable from one another to an outsider perspective.
Another level of security for transactions is provided by ‘stealth addresses’, in other words a one-time-only address that is generated for each individual transaction. This keeps the sender and recipient’s address anonymous. On the dark web, users are flocking to XMR as they remain one of the few cryptocurrencies which can’t be traced.
The huge advantage that comes with this level of privacy is a phenomenon known as fungibility, meaning that each unit on monero is equal to another. This is again due to the untraceable nature of transactions meaning an account can’t be marked by ‘suspicious activity’ which can send many parties heading for the exits.
This makes the currency extremely attractive to markets such as Oasis and it is viewed as key to the future of blockchain because in this sense it acts like real money – a $5 bill can be exchanged for 5 $1 bills without issue. A car, on the other hand, can’t be traded for another car in the same manner, due to the unique number plate and driver details. Another advantage to Monero being fungible and able to act as real money is that it is likely to become important as a potential global cash reserve. This is one more factor in why it could be around for the long haul.
Monero’s continuing increase in popularity is also associated strongly with its loyal community. Since its inception, Monero has encouraged questions from its users and attempted to maintain a good level of transparency and participation. This has been greeted with positivity from these groups and allowed a democratic decision-making process about its future to flourish.
XMR is also seen as one of the most manned open-source projects in the world. The solid foundation, which comes with around 350 individuals continuing to develop the project, acts as a major source of encouragement for both an increasing popularity in the internet community and on a myriad of internet markets. By having such a strong team, often made up of volunteers who do it in their free time and individuals taking donations, the cryptocurrency has managed to keep apace and even outrun its rivals and the ever changing nature of the technological field it’s in.
Combining an evolving and ambitious development programme with significant user input and total privacy has proved to be the perfect recipe for Monero’s continued success. In a packed field, the capability for Monero to go the distance has never seemed stronger.
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