Monero Coin Profile: Monero (XMR)
In April 2018, we launched our Monero (XMR) trading markets for everyone using our iCE3X exchange. In this post, we will be going over what Monero Coin is, and what it could mean for you.
About Monero XMR:
One of the famous #virtual currencies in the market, #Monero (XMR), is going to be available for #African individuals and #investors. On April the 26th, #iceCUBED-X [ICE3] decided to add #Monero to its platform. The trading pairs offered will be #XMR/ZAR and #XMR/BTC.(Tech Talk)
— Huobi NEWS (@HuobiNews) April 29, 2018
In 2012, Bytecoin launched, becoming one of the earliest iterations of an altcoin to surface. Together with CryptoNote, Bytecoin created an application layer protocol for decentralized cryptocurrencies, similar to the one that runs Bitcoin. The founder of Bytecoin proposed some controversial changes which caused many disagreements in the community. Eventually, the Bytecoin was forked, and ‘Bitmonero’ was created.
Bitmonero eventually became the ‘Monero’ we know it as now. On this new blockchain, it takes 2 minutes to mine a Monero coin block and add it to the blockchain. In using a blockchain designed with an extremely complex public ledger, people won’t be able to send transactions. As a result, no external observers will be able to decipher the source, destination or value of any transactions that take place on the network.
How does Monero coin maintain privacy?
Monero is developed around application-level cryptographic privacy-oriented protocols, these are; ‘Ring Signatures’, ‘Ring Confidential Transactions’ (RCT) or ‘Stealth Addresses’
Since Monero’s initial release, the blockchain has received numerous updates and improvements. Some of these include:
- Improving migration of the blockchain to different database structures, bringing enhanced efficiency, versatility and seamless use as a result.
- Introducing minimum ring signature sizes in an act to ensure private transactions by mandate.
- An implementation of RingCT to hide transaction amounts on the blockchain
- Various general security improvements
Ring Signatures / Stealth Addresses
Ring Signatures are digital signatures in which a multitude of transactions are verified. No user is able to see the signer of any transaction. It works by generating a one-time spend key for the sender. The recipient then detects and spends money based upon the one-time key. Each expenditure on the blockchain generates a key image. This is done in an act to solve the double-spend problem commonly found with cryptocurrencies; an initial goal of Satoshi Nakamoto when creating the Bitcoin Blockchain.
Stealth addresses also go by ‘one-time public keys’. They prevent the linking of a recipient to funds in their wallet, making the recipient anonymous in the process. The address can be verified by a 3rd party in order to prove that the transaction actually happened. As a result, the sender will share their public view key.
Recipients receive funds through their wallet’s private view key. Once a user receives funds in their wallet, a single-use private key is generated. After this, recipients are able to use their private spend keys to spend their funds. This avoids the need for a public connection to the sender, recipient or the amount.
How Does Mining Monero Coin Work?
Monero was built on the CryptoNight algorithm, a Proof-of-Work consensus mechanism, developed on the CryptoNote protocol. This mining mechanism was ASIC-resistant until recently, but by using a regular CPU or GPU users can still mine Monero Coin.
Though it is possible to mine Monero, pool centralization is a challenge. This is due to a threat that secret ASIC mining is more efficient than mining Monero with a GPU. A result of a fork from ASIC miners, consequently resulting in a drop of over 50% in the Monero pools hash rate. Be that as it may, Monero coin remains a GPU-mineable cryptocurrency.
Main Privacy Features
All XMR addresses that send and receive tokens use default encryption. Both the sender and the receiver are completely anonymous, as well as the amount of XMR tokens sent in the transactions. By encrypting all transaction information, it becomes impossible to trace a transaction back to a real-life identity.
As Monero is a decentralized cryptocurrency, a network of dedicated XMR users operate it. All transactions are verified by a distributed consensus, bypassing the need for any 3rd parties. With Monero, all transactions stored on the blockchain are anonymous.
Stealth Addresses, Ring Signatures and Ring Confidential Transactions (RCTs) are all implemented to censor the amount, origin and destination of each XMR transaction.
How to buy Monero (XMR)
We think Monero is currently the most suitable coin to add to the exchange, because it is fundamentally different from bitcoin, has a real-world use case and somehow managed to stay more true to the “original idea” around which Bitcoin was created. The balance between our users’ needs and a safe and secure trading environment is continuously improving and the addition of XMR has been on our roadmap for a while now. We are keen to see the market response and hope to help cement XMR’s position in the crypto space – Gareth Grobler, CEO of iCE3X
Using our iCE3X Exchange, XMR, BTC, and other altcoin holders are able to buy and sell cryptocurrency directly with local traders. We have also detailed instructions on how to buy XMR on our exchange.
XMR to BTC https://ice3x.com/xmr-btc
XMR to ZAR https://ice3x.com/xmr-zar
Monero’s privacy-oriented features are one of the main reasons Monero coin has become the 10th biggest cryptocurrency as of writing this post (according to CoinMarketCap). While these privacy advantages have helped this coin gain popularity, they come with challenges. As the coin is focused on anonymity, it opens it up to becoming a catalyst for disreputable purposes. Markets on the Darkweb that deal in illicit goods such as drugs, weapons, and gambling often accept Monero coin as payment.
While there are a few challenges, it shouldn’t be enough to discourage anyone from this revolutionary technology. Anonymity is why everyone migrated to bitcoin originally, this coin adds added layers of privacy. Bad people will use good things for wrongdoing regardless, it shouldn’t discredit the potential of this currency.
Will you be trading Monero with us? If not, what altcoin do you think is a better option? Let us know your thoughts below.