First of all, let’s go back to the fundamentals (monero rate), for several years now crypto-currencies have existed. Today, and given the importance that this type of currency is taking on in our financial system, I think it makes sense to focus on it. A cryptomonnaie is a 100% electronic, virtual and encrypted currency.
The encryption of these virtual currencies is done via a file storage system called Blockchain. A Blockchain is comparable to a public transaction ledger. It is an information storage and transmission technology that allows fast and secure transactions to be carried out while saving on operations.
To return to cryptomonnaies, it is important to know that behind each of them lies a well-defined project. Each of the existing cryptomonnaies was founded by fulfilling a well-defined objective. In the following paragraph we will look at the Monero’s.
Monero, “Secure, Private and Untraceable”
Among more than 1000 cryptomonnaies, only a few ten stand out. We’ve all heard about the famous Bitcoin that just crossed the $10,000 mark or the Ethereum, the Dash and so on… A cryptomonnaise is making a name for itself in the intriguing world of virtual money, the Monero. But why? Why?
Created in April 2014, the Monero rate is a peer-to-peer virtual currency (see monero course) that unlike the vast majority of new cryptomonnaies is not a Bitcoin clone. That is, it is not developed on the source code of the latter. The Monero is built from a protocol called CryptoNote (Source code with constant evolution). This virtual currency is characterized by three elements which are as follows:
– First, it uses a system called “Ring signatures” (Circular Signatures). This cryptographic process consists in electronically signing a message anonymously.
– Then, the RCT (Ring Confidential Transactions), it is a question of splitting each transferred sum into several “packages”, this makes it possible to disclose the transaction amount in order to make it less traceable. In addition, recently this technology may mask the amount of the transaction.
– Finally, the most important feature of the Monero rate is the “Stealth Adresses” component. This technique ensures the confidentiality of the parties involved in the transaction (recipient and sender). Thanks to a stealth address a sender can take the public address of a recipient and make it a unique address, which means that only one address is registered in the blockchain.
These three characteristics make Monero rate an anonymous, untraceable and therefore secure currency. The advantage of these elements is that Monero exchanges are impossible to follow on the Blockchain unlike Bitcoin.
Bitcoin is less secure than Monero because we can access its blockchain, we can see all the transactions there so we can deduce the origin and destination of the transfer. Concerning the Monero, a user will not be able to know the content or history of another portfolio, unless its owner authorizes it by giving it a special key.
Could the Monero rate the Bitcoin?
The Monero has several advantages over the Bitcoin, here they are:
– Monero’s extraction algorithm is superior to Bitcoin’s: ‘Mining’ is the name given to the execution of a program on a computer that verifies and processes the cryptocurrency transactions that other people report to the global network.
The Bitcoin algorithm runs much faster on custom extraction chips (ASIC – high-performance and very expensive computer) than on standard PCs and laptops. This means that it is almost totally unnecessary for an ordinary computer user to attempt to participate in the Bitcoin extraction process, and leads to a relative concentration of miners in countries with the lowest electricity costs.
On the other hand, the Monero mining algorithm has been specifically designed so that ASICs will not have too much advantage over ordinary computers belonging to the general public. Those who do this will receive Moneros in exchange for running the software. As no special mining equipment is required, this means that it would be easy for anyone to download a Monero portfolio to simply click on a single button to start exploration on their computer.
– Block size (Blockchain components) – When transactions are announced on the Monero or Bitcoin networks, they appear as part of a “block”. Monero blocks are produced on average every 2 minutes and Bitcoin blocks are produced on average every 10 minutes. Bitcoin blocks have a maximum size, so if there is no space, your transaction will be delayed.
If you desperately need your transaction to be included in a Bitcoin block, you will need to increase the transaction fees you pay to the Bitcoin network. Monero, however, was designed to have an automatically adaptive block size limit. This means that it will automatically be able to manage future increases in transaction volume by automatically increasing the block size to accommodate higher future transaction volumes.
– An impressive integration of the I2P (Invisible Internet Project) layer into Monero is under development. This will add even more privacy protection during the transaction in Monero. I2P The purpose of this technology is to make your payments untraceable.
– The quality of the Monero project’s R&D team and their design objectives are very impressive, with more than 180 engineers contributing to the development of this currency.
So can the Monero compete with Bitcoin or not?
I think that from a technical point of view, yes. The source code of the Monero is more advanced than that of the Bitcoin as we have seen previously and the execution protocol is constantly evolving. Moreover, its network is not yet saturated, as may be the case with the Bitcoin, which has a problem of scaling up.
There is a risk of saturation and consequently of longer and longer payment transfers (sometimes more than 30 hours to receive Bitcoins). Concerning Monero the network is not saturated (with many empty blocks per day due to its anonymous nature). It is impossible to say which transactions have been processed or not. This is perhaps Monero’s greatest challenge, to ensure that his anonymity does not hinder his progress to scale.
There is also a major question about the future of cryptocurrencies, from a political and regulatory point of view. No one is certain that governments will let governments operate freely without control, regulation or taxation of virtual currencies.
The only disadvantage is that thanks to or because of this anonymity, the Monero is widely used in illegal (or at least underground) markets, says Darknet, so it can jeopardize his reputation. Despite this, this currency will continue to develop so I think there is reason to be interested in it and to be optimistic about the future of this project.
A certain number of individuals are already seeing the Bitcoin collapse (bubble phenomenon) and give way to another currency such as the Monero, which claims to be more confidential.
Personally, I think that cryptomonnaies are very interesting technologies that have certain limitations. The blockchain is a step forward not to be overlooked.
As a reminder, the disadvantage of the Monero is its image linked to illegal markets, however it should be remembered that the main use of Bitcoin at its creation was the purchase on the Darknet. Ideally, a currency should be created that identifies individuals and therefore eliminates all illegal uses while maintaining the advantages of the Blockchain (see monero rate).
I think the Monero is the Beta version of the Bitcoin. Moreover, it looks a lot like Bitcoin in 2010. Is it this activity on the Darknet that caused the significant increase in Bitcoin? Will the Monero have the same route as the Bitcoin? According to some researchers, the Monero would be the best replacement for the Bitcoin in the event of a Bubble.
Thanks to the research I was able to do to write this article, I was able to discover another virtual currency that is all the more interesting because the Monero, it is the Ripple. The Ripple plans to replace the SWIFT transfer, so many banking institutions are already interested in it. This currency will be the subject of my next article (see monero rate).
NB: Cryptocurrencies are extremely risky investments. This article does not constitute investment advice, please do your own in-depth research (see monero course) in case you wish to invest. ”monero rate”