What makes Monero XMR a special crypto currency

Cryptocurrency Monero briefly and concisely explained

Every digital payment leaves its mark Customers threaten to become so transparent. The crypto currency Monero, on the other hand, protects privacy when paying. t-online explains the background.

The rolls at the bakery are quick with the EC card paid. Many people book their vacation comfortably from the couch with the Visa or Mastercard and more and more customers are using it for online shoppingPayment service provider like Paypal or Klarna.

What many people are not aware of: Whenever we have our money spend, we leave traces. Anyone who buys a lot online or who discovered contactless payment in times of the Corona crisis gives Banks, Credit card companies, but also third-party providers comprehensive insights into their own purchasing habits.

But there is another way: One Cryptocurrency has set itself the goal of more privacy and to bring anonymity into the payment processes - Monero. You can find out what this is all about here.

What is Monero?

Monero is onedecentralized cryptocurrency. It has existed since 2014 and is one of the ten most important crypto coins. Monero differs from the other major cryptocurrencies in three approaches:

  • more anonymity and privacy in the payment process,
  • a low-computation mining process,
  • goal of equality the user community

At Payments With Monero, third parties can provide details about the recipient and sender as well as the total not free see. Anyone who has precise insights into the Transactions would like to have explicit authorization.

So not everyone can do it on the Blockchaintrack every payment, only authorized people. The abbreviation for a Monero token is XMR. The price for an XMR was $ 227 in February 2021, Monero peaked in 2018 with a price of more than $ 400.

How does Monero work?

There is also one behind Monero Blockchain, just like with the largest and most famous cryptocurrencies Bitcoin and Ethereum. In contrast to Bitcoin, the algorithm behind the blockchain at Moneromore economicalso a lowerComputing power is needed.

Like Bitcoin, Monero also works with the so-called Proof of work - Miners have to solve a complicated arithmetic problem to get a block on the Blockchain to encrypt and for that as a reward Coins to obtain. This principle led to the fact that Miner for bitcoins more and more Computing capacity need to solve the arithmetic problems.

Because the more Bitcoins are created, the more difficult the tasks are. In some countries, therefore, have downright "Mining farms" educated - the simple users can now hardly afford to be an active part of the Network to be.

How can I create Monero?

A Specialty from Monero is that every user with a off-the-shelf computers about his graphics card XMRcan generate. This is made possible by the more economical algorithm behind Monero: This one is significantly less computationally intensive created. Thedifficulty At Monero, the number of tasks does not increase over time, but depends on the number of active users in the network.

Also unusual: The Miner can determine how big a block should be on the blockchain - as long as it is in the median of the last 100 blocks. Miners can therefore do something larger blocks on their computers and something like that bigger profit achieve.

As with others Cryptocurrencies the reward decreases with each block. The limit at Monero is a total of 18,132,000 XMR. This point becomes likely 2022 can be achieved. Unlike with Bitcoins, however, new ones can still be used XMR coins arise.

The border only signals that the reward for the miners levels off at a constant value and does not decrease any further. From this point on, every miner gets for everyone sealed block 0.6 XMR paid out. Unlike Bitcoin So there is no cap on the coins and thus no natural shortage.

What makes Monero so anonymous?

As a Monero user, you can access the anonymity leave the currency. The transactions are from the outside not visible, unlike Bitcoin, for example. Sensitive data like receiver, Channel and total are only stored encrypted on the blockchain.

who the Transactions wants to see, so needs one key. There are two ways of doing this with the Monero blockchain: the private key and the so-called View key. While the private key is available to the recipient and the sender, the View Key can also third view the blockchain transactions.

In addition, Monero is on circular transactions, the so-called RingCT. While with other crypto currencies, the currency goes straight from the sender to the recipient, takes Monero winding paths. The algorithm behind the RingCT allows multiple users groups together.

Afterwards, a transaction can only be assigned to one group, the individual user can himself and his Transaction amount thus in the group "hide". Analyzing the individual payments is then associated with a lot of effort. The anonymity the crypto currency Monero is also making it more popular with criminals on the Darknet. So demanded about Cyber ​​criminals in hacking attacks already XMR as ransom.

Where can you buy Monero?

The Cryptocurrency you can buy on a total of eight exchanges, including two of the largest Crypto exchanges:

Coinbase, also one of the largest stock exchanges, made a conscious decision to Monero not to be listed for the time being. According to the US company, Coinbase shies away from the direct confrontation with the US authorities. Because the American regulatory authority has to trade with Monero no rules passed yet.

Should this be the case, ask Coinbase a listing in prospect. The stock exchangeBittrex based in Liechstenstein, however, took the Data protection coin in January 2021 from the offer without comment.

Alternatively, you can also use CFDs trade with Monero - but here you are only speculating about the Course history and own no coins the cryptocurrency. Some crypto exchanges like eToro offer the CFD trading with Monero on.

Does Monero have a future?

That depends on the regulation the Crypto markets in the future. With increasing digitalization, the need of many customers increases their privacy continue to protect. Monero could benefit from this desire as the Payments so that are not trackable - similar to the popular one Cash

But anonymous Cryptocurrencies are always more Regulators a thorn in the side. The ECBhas already found out about the lack of regulation of Bitcoin complained - although this is clear more transparent is as Monero.

The fear that criminal Making payments via the cryptocurrency could go unnoticed in the following years Forbidden lead in individual countries. In that case there would be a lesser one Trading volume and investors would have to come up with a clear Price slump calculate.