Monero (XMR) FAQs
Monero is a cryptocurrency that runs on a privacy-enhanced blockchain. Unlike Bitcoin, which is fully transparent, Monero works to make wallets and transactions completely anonymous. It enables fast, private transactions between any two parties in the world with a Monero wallet and Monero (XMR) currency available.
While it is more private than other cryptocurrencies, it uses similar underlying blockchain technology with open-source code and community-driven development.
What Is Monero?
Monero is a privacy-focused cryptocurrency. Like Bitcoin, Ethereum, and other popular currencies, Monero is an open-source project with a large community of contributors. Monero is unique in that it’s designed to keep wallets and transactions completely anonymous, including to network members, developers, and miners.
Monero launched in 2014 with a philosophy focused on security, privacy, and decentralization. New blocks are created every two minutes, and there’s no maximum block size, leading to faster transaction times and lower costs than you see with the original Bitcoin network.
For cryptocurrency enthusiasts that want to learn more about the technology that makes everything work, Monero is a good starting point. It’s relatively easy to use and interact with using a GUI (graphical user interface) or command-line-based (CLI) wallet, and it supports just about any type of device you have lying around.
What Makes Monero Different?
There is a lot about Monero that is similar to many other cryptocurrencies. It’s an open-source project that is entirely permission-less. This second feature is potentially world-changing. There is no authority that can stop you from using a cryptocurrency.
This means that those without access to modern banking facilities can take part in a digital economy in the way they never could before. All they need is an internet connection and a device to connect to it. There are literally millions of people around the world that lack access to banking facilities but have smartphones and local Wi-Fi hotspots. India is a prime example of a country with many of these “unbanked” citizens.
The main thing that gives Monero value is its privacy features. No one can link you to a Monero cryptocurrency transaction. This makes it a favorite currency for those who are concerned with privacy for a variety of reasons. Not all these reasons will be illegal, although some obviously will be.
Another very important feature of the Monero cryptocurrency that relates to its privacy is that it is entirely fungible. Don’t worry, I’ll explain what I mean by this!
It’s possible to track Bitcoin transactions from one user to another. Depending on how the user uses Bitcoin, you might not be able to tell their identity, but you can follow each Bitcoin from address to address.
This means that a user can tell if a certain Bitcoin was involved in a crime.
Thanks to the advanced privacy features of Monero, no one can tell which transactions each coin was actually involved in. It would be entirely impossible to link a single Monero coin to a past crime. There is no transaction history associated with any Monero coins. This means they are fungible!