With Bitcoin introduced in 2009, the cryptocurrency market started shifting towards decentralization of funds. Decentralization refers to the idea of having a network or system that operates on a peer-to-peer basis, without a central authority controlling or managing it. This means that transactions are processed and verified by network participants leading to increased security and transparency. Decentralization also enables censorship-resistant transactions and allows users to retain control over their own funds, paving the way to financial independence and making cryptocurrency an attractive means of investment. Monero cryptocurrency, in turn, one of the best options in terms of decentralization ever existed on the market as it solves the transaction traceability problem.
In this article, we will discuss Monero cryptocurrency, its distinctive features and how it ensures complete anonymity for users.
What is Monero (XRM)?
Monero (XMR) is a very popular, privacy-focused cryptocurrency that uses cryptographic techniques to hide the identity of the sender, recipient, and amount of transactions. It is an open-source, decentralized currency that aims to provide secure and untraceable transfers and is famous for its fungibility and accessibility.
The Monero blockchain is quite opaque — it hides crucial transaction details like the recipient or the sender’s identity or the transaction amount, ensuring full anonymity when transacting in Monero. Besides, Monero uses a proof-of-work consensus mechanism and is designed to be resistant to ASIC mining, making it accessible for individual miners.
So, what’s the example of the enhanced Monero privacy? Let’s say when you buy Bitcoin from an unreliable source or when you buy it on Coinbase, these Bitcoins can be told apart. When you buy Monero from different sources, however, these coins are completely identical.
This is what makes Monero such a popular cryptocurrency among experienced crypto holders.
How does Monero work?
To maintain complete privacy and anonymity on the blockchain, Monero uses two basic principles — stealth addresses and ring signatures.
Stealth addresses are a privacy feature in blockchain technology that allows for increased anonymity in transactions. They are used to create unique, one-time addresses for each transaction, making it difficult for external parties to track the flow of funds between participants. The stealth address is generated using complex algorithms, and it is not possible to determine the recipient’s real address from the information available on the blockchain. However, blockchain participants can still use a single public address for receiving payments in another crypto, like Ethereum. If they wish to use Monero, users will generate a private view key and a private spend key.
A ring signature is a type of digital signature that allows a member of a group to sign a transaction on behalf of the group, without revealing which member actually signed it. In a Monero transaction, the sender uses a ring signature to conceal their identity among a group of possible signers. This makes it difficult for outside observers to determine which member of the group actually signed the transaction, providing a high degree of privacy for the sender.
You can also accept Monero for your business if you don’t wish to reveal the transaction origin for a number of reasons. Check out the Plisio cryptocurrency payment gateway and integrate the payment gateway API to accept Monero, Bitcoin, Litecoin or other crypto you wish.
Basic Monero Features
You just learnt the basic principles the Monero cryptocurrency is based on and what makes it so decentralized and untraceable. Still, these are not all the features offered by Monero blockchain. Let’s sum up what makes Monero special:
When it comes to security, Monero is definitely the best crypto you can find. Monero uses stealth addresses and ring signatures to obscure the identities of the sender and recipient in a transaction, operates on a decentralized and opaque network while using cryptographic algorithms to secure its transactions, making them tamper-proof.
2. Control Over funds
As the Monero blockchain is completely decentralized, it means that no one but you have access to your funds. All the transactions are private and untraceable, so no one will know who sent the funds, how much and when.
All Monero coins are interchangeable, which means they can be interchanged with each other and are completely identical, no matter how you bought it and where. Even though almost all of the cryptocurrencies are fungible, Monero is 100% fungible.
Monero has a scalable blockchain that can handle a high volume of transactions. The Monero blockchain has the unlimited potential to grow, which means that you don’t have to pay a heavy fee when the network is busy. The dynamic scalability of the Monero cryptocurrency makes using the Monero blockchain quite efficient in terms of transaction cost. Monero adjusts its block size dynamically, allowing for faster processing of transactions when necessary.
5. Multiple Keys
Monero uses a system of multiple keys to enhance the security of its transactions.
View Key: A view key allows a user to view their transactions and balances, but does not allow them to spend their funds;
Spend Key: A spend key is required to initiate transactions and transfer funds from a Monero wallet;
Seed Key: The seed key is used to generate both the view key and the spend key, and serves as a backup in case the wallet is lost or damaged;
Private Key: The private key is a secret key that is used to sign transactions and provide proof of ownership;
Public Key: The public key is used to receive Monero and can be safely shared with others.
How to Accept Monero
If you are convinced that Monero is a great crypto to work with, you can start accepting it for your small or medium-sized business. The Plisio cryptocurrency payment gateway will be a great shot for you as it allows for accepting Monero, while the competition cannot offer the same. Register on Plisio to get a free account and a free crypto wallet, complete any necessary verification steps and integrate the payment gateway with a very flexible API provided by the platform. 18 available cryptocurrencies, 12 e-commerce plugins and all for a very modest fee starting from 0.5%. Start accepting crypto now and grow your business in no time!
Please note that Plisio also offers you:
- Zen Cart
- Easy Digital Downloads
4 libraries for the most popular programming languages
19 cryptocurrencies and 12 blockchains
- Bitcoin (BTC)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Tron (TRX)
- Litecoin (LTC)
- Dash (DASH)
- DogeCoin (DOGE)
- Zcash (ZEC)
- Bitcoin Cash (BCH)
- Tether (USDT) ERC20 and TRX20 and BEP-20
- Shiba INU (SHIB) ERC-20
- BitTorrent (BTT) TRC-20
- Binance Coin(BNB) BEP-20
- Binance USD (BUSD) BEP-20
- USD Coin (USDC) ERC-20
- TrueUSD (TUSD) ERC-20
- Monero (XMR)