What Is Monero?

Monero (pronounced as either “mon-er-o” or “money-o”) is a cryptocurrency that focuses on privacy and decentralization. As such, it is one of the top 100 cryptocurrencies by market capitalization.

How does Monero work?

Cryptocurrencies such as Bitcoin and Ethereum work by recording every transaction that occurs on their blockchains. Anyone can view the balance and transactions of any public address – this means that, if you know someone’s public address, you can discover how much money they have, and how many funds they’ve sent and received. Additionally, anyone can see the public addresses associated with all of a cryptocurrency’s transactions on its blockchain. This makes sense for most cryptocurrencies, but not for Monero.

Monero works differently than other cryptocurrencies in that it uses “ring signatures.” Ring signatures are part of a technology called “CryptoNote” that obscures which outputs are actually being spent. Basically what this means is that Monero hides who is sending money by mixing your account with other accounts. The result is that all Monero transactions appear as equal, and no one can tell exactly who sent or received funds.

Monero also makes use of “stealth addresses.” Stealth addresses allow senders to generate a unique address for each transaction which they make; this ensures that only the recipient can identify the transaction’s origin and destination. This means that if you receive money from someone, there is no way for them to later discover the balance of your public address (unless you share it with them).

Since these features are built into Monero’s CryptoNote protocol, they work automatically – there’s no need to create new wallet addresses every time you want to receive funds.

privacy monero

Who founded Monero?

Like Bitcoin and many other cryptocurrencies, the founder(s) of Monero remain anonymous. However, it is known that the creator used the moniker “thankful_for_today” as early as April 2014. While working on Monero, this individual or group has consistently advocated against any kind of centralization by community leaders.

How popular is Monero?

According to CoinMarketCap, as of January 2022 there were just over 18 million XMR in circulation. The value per unit was about $141 US dollars (USD), with a total market capitalization of about $2.5 billion USD.

How is Monero different than Bitcoin?

There are many significant differences between Bitcoin and Monero. First of all, while both make use of CryptoNote technology for obscuring transaction records, Monero’s crowdfunding drive focused specifically on privacy and decentralization (Bitcoin’s aim was to provide a peer-to-peer electronic cash system).

Additionally, Monero uses a mining algorithm called “CryptoNight” which is designed to resist the development of Monero-specific ASICs.

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