What is Monero?

What is Monero?

How does Monero work? Should I buy Monero? 2019

Launched on April 18th 2014, Monero is a relatively new open-source cryptocurrency, designed for decentralization, privacy and scalability.

Upon initial launch, Monero’s name started as BitMonero (a term designed to combine Bit like Bitcoin and Monero which means ‘coin’ in Esperanto). Monero ultimately changed its name from BitMonero to just Monero five days after the cryptocurrency community asked for a shorter moniker.

Monero and Bitcoin 2019

While Monero is one of the many cryptocurrencies that initially derived from Bitcoin, Monero is based on the CryptoNote protocol and contains multiple algorithmic distinctions from bitcoin relating to blockchain obfuscation.

Monero started as the first fork of the CryptoNote-based currency ‘Bytecoin’. While launched under Bytecoin, there are two significant differences. The first difference is the shortening of the target block time from 120 to 60 seconds. The second difference is the deceleration of the emission speed by 50%.

CryptoNight & Monero

Monero is an open-source cryptocurrency that operates purely on proof-of-work. CryptoNight is the AES-intensive proof-of-work algorithm that Monero uses. It is a “memory heavy” algorithm which allows GPU’s advantage over CPU to be significantly reduced. Monero can run on Windows, Mac, Linux and FreeBSD systems. Monero’s primary emission curve will release approximately 18.4 million coins to be mined in about eight years. The closest accurate estimate of this is that Monero will issue 18.132 million coins around the end of May 2022.

In 2016 Monero went through a quick growth in market capitalization and transaction volume (specifically, from $5 million to over $185 million). This quick growth was – in part – due to the darknet market AlphaBay’s adoption of Monero at summer’s end in 2016.

This year, Monero sits as the world’s most traded next-generation cryptocurrency, with a market-cap resting at over $6 million.

Monero Block Size (2019)

While Bitcoin has a block size limit of 1MB that prevents scaling, Monero does not have a hardcoded maximum block size. However, the block size is meant to be curbed from being too excessive by a block reward penalty mechanism, that is directly built into Monero’s protocol.

Monero Hack

In September of 2014, Monero underwent and recovered from an attack. Since then Monero has been strengthening its security network. On the 10th of January 2017, Monero moved to strengthen their transactions by adopting Gregory Maxwell’s, the Bitcoin core developer, algorithm called Ring Confidential Transactions that adds a second layer of confidentiality to transactions by not displaying the amounts of the transaction to parties that did not take part in it.

Monero currently uses a three-prong protection policy in order to ensure the privacy of its users. The first way Monero protects users’ privacy is the ring signatures it uses for all transactions on the network that hides the sending address of the user. The second protection measure Monero uses is the RingCT that hides the amount of currency being transacted. This RingCT is currently triggered by default but by the end of 2017 it will become mandatory. The third privacy measure Monero takes is the use of stealth addresses designed to hide the address of the receiver for the transaction. There is a fourth method of protection for users currently in the works which will conceal the origin node for transactions in I2P. The Kovri router that will allow for this to occur is in development right now.

Monero’s Future – 2019 and Beyond

With the emergence of an array of new digital currencies – from Nimiq, to Ether and Ripple – Monero is growing in its stature and clout.

As the sixth-largest cryptocurrency in the world after only three years of existence, Monero has quickly made its mark on the market, and continues to be a new cryptocurrency worth following closely.

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