Cryptocurrencies are getting popular these days that to date, there are more than 4,0000 cryptocurrencies in existence. While many of these have little to no following at all, some enjoy immense popularity from the communities, backers, and investors. Other cryptocurrencies want to make a difference in this already saturated market such as Monero. What exactly is Monero and how is it different from all other cryptos?
What is Monero?
Monero is considered to be the most privacy-focused cryptocurrency. They are among the first cryptocurrencies that allow users to send and receive transactions without making the data available to anyone in the blockchain.
Monero was launched in 2014, it is a fork of Bytecoin – another privacy-focused cryptocurrency. Its original name was BitMonero. Initially, there isn’t much acceptance of this fork as many features such as improved block time and block reward system were missing. Thus, the community decided to improve it by itself. Thus, they changed the name to “Monero”.
Monero aims to address the weaknesses of Bitcoin (BTC) and all other currencies where the transactions can be tracked and viewed in the blockchain. Anyone can be able to identify and trace your transactions.
With Monero, no one can link your cryptocurrency transaction. This makes it a favorite currency of choice for those who are concerned with privacy.
Because it being privacy-focused, it is the primary vehicle of transfer of payment in the DarkNet. They were also used to store money anonymously.
Monero is Fungible
Another great feature of this cryptocurrency is that it is entirely fungible. With Bitcoin, it is possible to track transactions from one user to another. Depending on how the user uses Bitcoin, you might not be able to know who is sending or receiving Bitcoin, but you can follow each Bitcoin from address to address.
This means that anyone can tell if a certain Bitcoin was used in a crime. So, for example, you sold a completely legal item and was paid in Bitcoin. However, it turns out that the Bitcoin previously used was used in criminal activity. When you try to spend it somewhere else, the person receiving it can decide not to accept your coin when they see that you are sending a “tainted” coin.
Thanks to the privacy features of Monero, nobody can tell which transactions each coin was involved in. It will be impossible to link a Monero coin to a past crime. They are no transaction history involved in any Monero coins. Which means that Monero is fungible.
Monero’s Supply
Unlike Bitcoin where there is a limited number of Bitcoin tokens that will ever be mined, Monero’s currency is inflationary. Initially, there will be 18.5 million coins, and this supply will increase by 0.87% in the first year.
This percentage will lower each year and it is estimated that it will take 117 years to reach its initial distribution. For this figure to double, it will take another 234 years.
In a world where genuine privacy anymore, a call for privacy-focused currencies like Monero is certainly a breath of fresh air. Monero can let people transact with almost anyone on the planet without getting permission from any authority.