Cryptocurrency is no stranger to the digital world as it is now. Now, it’s not only communication that can be done virtually, but also transactions. Transactions with Monero and other crypto assets are being made more and more.
Along with its popularity, now more and more new cryptocurrencies are being launched. Some assets are even foreign to crypto beginners, such as Monero, Solana, Chailink, Stellar, and others.
The focus of the discussion this time is about what Monero is, the history of Monero, the features of Monero, how to use it, and the pros and cons regarding Monero. In short, with this review, you will get a deeper understanding of what is Monero and the Monero blockchain.
Several sources from the Monero site mentioned the understanding of what the Monero blockchain is. Monero blockchain is a currency system that has guaranteed security, is private, and cannot be tracked by anyone and any system.
What is the History of the Monero Blockchain?
In fact, the founding of the Monero blockchain was inspired by the first launch of CryptoNote in 2018. CryptoNote is a layered application protocol used for cryptocurrencies and designed to solve problems identified in Bitcoin. Although similar, both have fundamental differences.
In its development, identification in Bitcoin becomes problematic when 80% of the number of coins has been distributed. So to overcome this, it was decided to fork Bitcoin. The new coin created from this process is called Bitmonero.
From there, came the name change from Bitmonero to what Monero is. Monero itself means coin in Esperanto. Coins will be mined and added every two minutes in the blockchain.
In its system development efforts, the Monero blockchain is led by a group of seven developers. The seven people include David Latapie and Riccardo Spagni. Meanwhile, five other people did not want their names to be made public.
So far, what is the Monero blockchain run with its characteristics of remaining open source. Then in terms of funding, the Monero blockchain is assisted by the public.
Special Features in the Monero Blockchain
Here are some special features that can be tried in the Monero blockchain, including:
1. The money is yours
The advantage that the Monero blockchain has is that you have complete control over transactions. Apart from that, you are also responsible for your own money. However, your identity remains private so that no one can find out the details of the use of your money.
The point in this point is that Monero is fungibility, that is, it can be replaced from an item with other goods or other assets of the same type. So, in addition to guaranteed user privacy, the Monero blockchain is also replaceable.
As is often the case before, Bitcoin was initially very proud because its system was considered very transparent. That is, everyone can see the transaction details on it, including every trace of a transaction that you or someone else has made.
If you have Bitcoin that has been used for an illegal transaction such as buying drugs, of course the Bitcoin that you have will forever record the details of that transaction. Of course, this will greatly affect the value of Bitcoin and your transaction details will be dirty.
Bitcoins that have been tarnished will usually be priced lower than Bitcoins that have clean transaction details. Therefore, several exchange platforms or Bitcoin service providers plan to remove the fungibility property. This property is the most criticized property of Bitcoin.
The presence of the Monero blockchain is very helpful because all data and transactions made are private. As a result, no one can know the details of previous transactions from what Monero is.
Because there is no transaction history, what is Monero, other users also cannot track traces of transactions from your Bitcoin. That is why Monero is fungible (can be replaced). Now, there is no longer any concept of whether Monero is clean or Monero is tarnished.
3. Dynamic scalability
In the crypto industry sector, recently the hottest topic is Bitcoin scalability. To avoid logging spam transactions, Bitcoin is set to have a block size limit of 1 MB.
However, that is not the case for the Monero blockchain. This feature has no block size limit, but can still prevent fraud. The penalty system entered into the Monero blockchain system refers to the average value of the last 100 blocks.
4. Application Specific Integrated Circuit (ASIC) Resistant
Even though it is not completely ASIC Resistant, the CryptoNote system used by the Monero blockchain only makes ASIC costs very high. The results obtained will not be comparable.
The CryptoNight system is a hashing algorithm used by CryptoNote in the Monero blockchain. To prevent mining pools and so that cryptocurrencies can be distributed evenly, cryptocurrencies use the Cryptonight system which cannot be mined.
5. Has several keys
According to what is the Monero blockchain, there are 3 categories that every digital currency must fulfill. They must be electronic, decentralized, and private.
If other currencies such as Bitcoin, Ether and altcoins only have one public key and one private key, the Monero blockchain has several keys designated for only one address. This is intended to increase security when transacting.
Some of the keys of the Monero blockchain system include the view key and the spend key. Each of these features has its own private key and public key.
How to Use Monero
How to use Monero is fairly easy. This is because there are only two methods for creating a Monero wallet. The first way is to register on a crypto exchange or online wallet provider. You can search for them online.
The second method is to create your own wallet, namely by installing a Monero wallet. This method requires quite a large amount of resources because it requires you to download the masternode.
You only need to choose from the two methods and adjust to your needs. However, if you want to run solo mining, it’s better to use the second method by installing a Monero wallet.
The difference between Monero and Bitcoin
What is Monero and Bitcoin actually have their own advantages. You only need to adjust it to your needs. As previously explained, Bitcoin excels with its transparency system. Everyone can see the ongoing transactions and transaction history of the Bitcoin.
Meanwhile, what is Monero blockchain places more emphasis on privacy. The privacy built into the Monero blockchain will have no effect on clean or tarnished Monero. All Monero will be priced the same. Confidential transaction history can sometimes make crypto beginners difficult to understand.
This is a review regarding what the Monero blockchain is, history, features that are run, and the difference between Bitcoin and the Monero blockchain. Hopefully the above review helps you to understand what Monero is and its scope.