Monero vs Bitcoin

What is Monero.

The fourth most common currency is Monero. This digital currency was launched in 2014 and it’s main goal was to create an algorithm to add the privacy features that is missing in Bitcoin. Monero invented a system known as the “ring signatures” to conceal the identity of its senders and recipients.

Ring signatures combine a user’s private account keys with public keys obtained from Monero’s blockchain to create a ring of possible signers that would not allow outsiders to link a signature to a specific user. While Monero users have the ability to keep their transactions private, they are also able to share their information selectively.

Every Monero account has a “view key”, which allows anyone holding it to view the account’s transactions. Initially, the ring signature system concealed the senders and recipients involved in the Monero transactions without hiding the amount being transferred. However, an updated and improved version of the ring signature system known as “Ring CT” enabled the value of individual transactions as well as its recipients to be hidden.

Apart from ring signatures, Monero also improved its privacy settings by using “Stealth Addresses”, which are randomly generated, one time addresses. These addresses are created for each transaction on behalf of the recipients. With this feature, the recipients use a single address and transactions they receive go to separate, unique addresses. This way, Monero transactions cannot be linked to the published address of the recipients. By providing a high level of privacy, Monero allows each unit of its individual currency to be exchanged between one another. Meaning, each of its coin has the same value.

Like the other cryptocurrencies, Monero offers interested parties to mine blocks. Individuals may choose to join a mining pool, or they may mine Monero by themselves. Anyone with a computer can mine Monero, as they do not require any specific hardware or specific integrated circuits like Bitcoin. Instead, Monero utilizes a Proof-of-Work (PoW) Algorithm that is designed to accept a wide range of processors, a feature which was included to ensure that mining was open to all parties.

Monero has received the acceptance of multiple dark web marketplaces and has generated its own fan base due to its privacy settings. Therefore, it is less speculative as compared to other digital currencies and traders purchase Monero as a hedge for other cryptocurrencies.