Monero For Beginners 7
Monero For Advanced 7
Monero Quiz 0No items in this section
Monero Basic Features
There are many things in Monero that are similar to other cryptocurrencies so let’s see the monero basic features. It is an open-source project that is wholesomely permission-less. This second monero basic feature has the potential to change the world. Here there is no authority or center of power that can stop you from using or limit your use of this cryptocurrency.
This means that those who do not have access to mainstream banking facilities can still be part of a digital economy, the way they never had the opportunity before. All that is required for this is an internet connection and a device to connect to the internet connection. Literally there are millions of people in the world that do not have access to mainstream banks while they have access to smartphones and Wi-Fi hotspots. India is an excellent example of a country with this “unbanked” population.
The most important source that gives value to Monero is its privacy features. No one can find a link between you and Monero cryptocurrency transactions. This is reason to be the favorite cryptocurrency to those that are concerned with their anonymity no matter their reasons. Of course, some of these reasons will be illegal activities but there are ones that are of a different nature.
There is another also very important feature of the Monero cryptocurrency that is related to the question of privacy which is that Monero is entirely fungible.
There is the possibility to track Bitcoin transactions from one user to another. In relation to how that user utilizes Bitcoin, you can even find their identity, also you can trace every Bitcoin from one address to another.
Because of the progressive privacy features of Monero, there is no one who can tell which transactions each coin was involved in. It will be wholesomely impossible to found a trace from a Monero coin to a certain crime. There does not exist any transactional history in relation to any Monero coins. This is the meaning of fungibility.
There is another sphere that Monero made an attempt to improve on Bitcoin, it is the scalability. Said plain and simple it means how networks are performing in relation to demand. Blockchain-based cryptocurrencies are limited in size by definition.
It is unfortunate that when a multitude of users tries to make transactions at the same time with Bitcoin, the blockchain gets filled with transaction data. The transactions that cannot fit into a block, are forced to wait for a miner to include them in.
But the developers of Monero made a block reward-penalty system. The median size of the last 100 blocks is taken. If the median size of the last 100 blocks is exceeded by the new block on which miners are working will get its block reward reduced. This has a discouraging effect on spam transactions because miners won’t mine blocks that are subjected under a large penalty having their profitability destroyed.
It utilizes an alternative hashing algorithm to Bitcoin that is dubbed CryptoNight. CryptoNight utilizes a multitude of progressive features to make the manufacturing of ASIC chips suitable for mining Monero unprofitable. The specifics of this question are complex for this introduction of the Monero cryptocurrency, nonetheless, the crucial thing is that Monero can be mined in a profitable way utilizing both CPUs and GPUs. This supposed to mean that Monero has the potential to be even more decentralized than Bitcoin.
Monero utilizes a different system of keys to that of Bitcoin and Ethereum. With these cryptocurrencies, there is only one pair of keys- a public and a private key. Monero utilizes a public view key, a private view key and both public and private spend key.