How Monero affects your crypto portfolio?


Monero (XMR) cryptocurrency is the most famous open-source anonymous coin. Unlike Bitcoin and other similar cryptocurrencies, the blockchain of which allows you to see the sender and recipient addresses and even the transaction amount, Monero is truly anonymous, safe, and completely untraceable, which is why it is often called the “anonymous cryptocurrency No. 1”.

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What is Monero cryptocurrency, History of creation?

The word monero from Esperanto is translated as “coin”. This coin uses the CryptoNote cryptocurrency algorithm, which originated in 2012 with the birth of the Bytecoin cryptocurrency. The Monero cryptocurrency was created two years later – in 2014. Although Monero has its own unique features, the core code was borrowed from Bytecoin.

Two years after its creation, Bytecoin has suddenly become a subject of increased interest from the community. It is still unknown who is the creator of Bytecoin, however, given the anonymous nature of the cryptocurrency, this is not very important. However, if we take into account the good optimization and elaboration of the code of this coin, we can safely assume that several people worked on this project.

We can say that the Monero cryptocurrency appeared by accident. The truth is that at the time when they started talking en masse about Bytecoin, almost 80% of all coins were mined. Therefore, a group of developers hard forked and called the latest project BitMonero, which was later renamed simply Monero. It happened on April 18, 2014. Until June 2014, the coin had the abbreviation MRO, but then it was changed to the XMR we are applied to today.

Four months later the launch of the coin, hackers attempted to destroy the still young and fragile coin of Monero. However, they did not succeed. According to the organization, attackers were well versed in the code of the coin and in the structure of Merkle trees (a data structure consisting of hashes of transactions that are included in a block). After this incident, the team postponed work on improving the interface and continued active work on the core of the system. Work on developing the interface was resumed only in 2016. Monero to bitcoin converter can show the best variants to invest, as well as with other cryptocurrencies.

Advantages and disadvantages of Monero

Compared to other cryptocurrencies, Monero possesses a number of significant advantages, including:

  • The anonymity of transactions – reached through the application of the technologies described above: ring names and ring steps;
  • Interchangeability – advances one coin completely interchangeable with different, which is obtained due to the point that the story of transferring XMR is untraceable;
  • Mining availability – unlike most cryptocurrencies, which require large investments in ASIC miners and powerful cards for mining, Monero cryptocurrency can be mined on conventional CPUs;
  • A short time of finding blocks – in the Monero network, it needs only 2 minutes to complete each block – this is five times smaller than the same indicator in the Bitcoin blockchain.

However, there are also some drawbacks of Monero:

  1. Heavyweight transactions – the use of ring signature technology is the reason that the average block size on the Monero network is 8 times the average block size on the Bitcoin blockchain;
  2. Complexity of integration into other (“non-native” wallets) – due to the application of the CryptoNote algorithm, which ensures anonymity, the coin protocol is very difficult to integrate into popular wallets such as Exodus or Jaxx;

The chance of viral mining – the primitiveness of mining cryptocurrency has a downside. Base site purchasers set a Coinhive script into the code that launches viral mining on the CPU of the user who attends the website.

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