The name Monero comes from the Esperanto and means "coin." Many progressive countries dislike this cryptocurrency for independence and closeness in identifying the participants. Although the same qualities bring it to the top cryptocurrencies.
The history of Monero
Monero payment system was launched in April 2014. Daniel Bernstein, a mathematician from the USA, has developed a cipher-based algorithm. Cryptocurrency is not developed from scratch. It is a fork of Bitcoin. Monero uses the cryptographic principle to obfuscation when it is difficult to understand the functionality of the code.
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The biggest Monero advantage is the high anonymity degree, surpassing even Dash. Everyone can see the completed transaction, but no one knows who, how and where the money is transferred. Looped signature refers to the group of users relevant to the transaction.
Monero is the subject of increased interest among global law enforcement agencies. Cryptocurrency has become very popular in the online casino, games and the DarkNet due to the high confidentiality level of the payments.
Monero privacy doesn't mean that cryptocurrency is aimed explicitly at trafficking in questionable areas.
It often turns law-abiding citizens:
- not to overpay for banking services;
- not to disclose personal information to the fraudsters;
- to avoid abuse among legal authorities.
Mining of Monero is different from mining other cryptocurrencies. You need a specialized equipment using the flagship graphic cards from nVidia or AMD to mine Monero due to the peculiarities of the algorithm CryptoNight. Although two years ago, before the network has grown, you could mine with a computer on Intel iCore5 base.
Now mining is possible only with computers with an architecture of 64-bit. One block confirmation will take up to two minutes regardless of the number of miners in the pool. The number of new coins increases that’s why the amount of remuneration for each block decreases. Experts have estimated that by 2022 it will be produced about 18 million coins. Then the compensation value will freeze and remain at the level of 0.6 per 1 XMR to keep the network always afloat.
The Prospects of Monero
Can the words "forecast" and "cryptocurrency" stand close in this volatile market? It is still difficult to make a forecast, but it is really important to understand the Monero growth compared to other cryptocurrencies. Bursts of XMR do not coincide with the peaks of the leading cryptocurrencies. But they correspond to the moments when large service platforms used it, like the iTunes Store and AppStore. And when, in summer 2017, the South Korean stock exchange BithHumb accepted currency, its price soared from $47 to $144.
The prerequisites to Monero growth
The cryptocurrency benefits are conducive to its financial development:
- the growing interest and demand in Monero;
- credible principle from the CryptoNight hashing;
- generating a new address for each transaction;
- RingCT technology that loop signatures exclude the identification of each participant;
- good opportunities for mining at home;
- support among enthusiasts pushing the brand to the market.
What makes Monero inconvenient and risky in circulation?
- People who use it in semi-legal trafficking
- The lack of control makes the currency a target for regulatory restrictions
- Issue of coins is still not enough for the implementation of major projects
- The algorithm is not compatible with the basic technological approach for mining.
Despite the impossibility of identifying Monero network users, developers policy always remain as transparent as possible. It contributes to the cryptocurrency promotion. Monero regulation as one of the most unreliable among all peers is the only obstacle to further development. Although, as practice shows, the more there is pressure, the more actively gaming business uses it.