What is Monero (XMR)? Guide for Beginners

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Bittime - This is one of the crypto coins that has quite a name and prestige, namely Monero (XMR). Understand more about Monero (XMR) in this article.

What is Monero (XMR)?

Monero (XMR) is one of the best-known and most respected  cryptocurrencies in the crypto world.

Launched in 2014, Monero was designed to provide additional privacy and security to its users. This crypto asset uses advanced cryptographic technology to hide transaction details, addresses, and amounts involved in each transaction, making it difficult for outsiders to trace.

History and Evolution of Monero (XMR)

The Beginning of Monero

Monero was first announced in April 2014 by a developer who goes by the nickname "thankful_for_today". 

The project is based on the source code of Cryptonote, a privacy-focused crypto protocol. 

Monero's main goal is to overcome privacy weaknesses found in other cryptocurrencies such as Bitcoin.

Growth and Acceptance

Since its launch, Monero has experienced rapid growth and become one of the top cryptocurrencies by market capitalization. 

Monero coin has been accepted by the crypto community as one of the best in terms of privacy and anonymity.

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Monero (XMR) Key Features

High Security and Privacy

One of Monero's greatest features is the high level of security and privacy it offers its users. 

Monero transactions cannot be traced back to the sender or recipient, and the amount of the transaction made is also hidden.

Ring Signatures and Stealth Addresses technology

Monero uses advanced technologies such as ring signatures and stealth addresses to mix transactions, making it difficult for outside parties to trace transactions to their source or destination.

Environmentally Friendly Proof-of-Work

Monero uses a proof-of-work algorithm called CryptoNight to secure its network. 

This algorithm is designed to give CPU miners an edge and prevent domination by miners with specialized hardware, thereby making the network more decentralized.

Active Developer Community

Monero is supported by an active and passionate community of developers who are constantly working to improve the protocol and its functionality. 

Such community support includes introducing continuous security updates and fixes to maintain user security and privacy.

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Differences between Monero (XMR) and Bitcoin and Ethereum

Monero (XMR), Bitcoin (BTC), and Ethereum (ETH) are three major cryptocurrencies that have fundamental differences in their technology, purpose, and nature. 

Here are the main differences between Monero, Bitcoin and Ethereum:

1. Main Focus

• Monero (XMR): Monero is a cryptocurrency known for its high privacy and security. Monero's main goal is to provide completely private and untraceable transactions. By using technologies such as lightweight cryptographic hash functions (ring signatures, stealth addresses, and RingCT), Monero hides transaction details, including the amount transferred and the identities of the recipient and sender.
• Bitcoin (BTC): Bitcoin is the first cryptocurrency created and the most recognized in the world. Bitcoin is more focused on financial freedom and decentralization. Its main goal is to provide a payment system that does not require a central authority such as a bank or government, and allows users to carry out transactions directly without intermediaries.
• Ethereum (ETH): Ethereum is a blockchain platform that allows developers to build and run decentralized applications (dApps) and smart contracts . Ethereum not only focuses on financial aspects like Bitcoin, but also aims to be a decentralized infrastructure that supports various blockchain applications, including finance, digital identity, gaming, and more.

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2. Technology Used

• Monero (XMR): Monero uses special privacy technologies such as ring signatures, stealth addresses, and RingCT to hide user transaction details. This makes Monero transactions completely private and untraceable, ensuring user privacy and security.
• Bitcoin (BTC): Bitcoin uses open and transparent blockchain technology. Every Bitcoin transaction is recorded on the blockchain which is open for anyone to see. Even though the user's identity is kept secret by using a crypto address, Bitcoin transaction history can still be followed and analyzed.
• Ethereum (ETH): Ethereum also uses blockchain technology like Bitcoin, but the addition of a smart contract feature allows developers to write code that executes automatically when certain conditions are met. It enables the development of complex decentralized applications on top of the Ethereum platform.

3. Scalability and Transaction Capacity

• Monero (XMR): Monero has a lower scale compared to Bitcoin and Ethereum. Monero's average block time is around 2 minutes with smaller block capacities, limiting the number of transactions that can be processed at one time.
• Bitcoin (BTC): Bitcoin is notorious for its scalability issues that limit the number of transactions that can be processed in a single block. This causes delays and high transaction fees during times of spikes in network activity.
• Ethereum (ETH): Ethereum has also experienced scalability issues, primarily due to the growing popularity of decentralized applications (dApps) built on top of it. Ethereum plans to switch to Proof of Stake (PoS) consensus and improve scalability with the release of Ethereum 2.0.

4. Community and Adoption

• Monero (XMR): Monero has an active and loyal community, primarily due to its focus on privacy and security. While not as popular as Bitcoin, Monero has a strong user base among those who value financial privacy.
• Bitcoin (BTC): Bitcoin is the most recognized cryptocurrency and has the largest community in the world. With widespread adoption and acceptance by financial institutions and the general public, Bitcoin plays an important role in the global financial movement.
• Ethereum (ETH): Ethereum also has a large and active community, especially among blockchain developers and technology lovers. Ethereum has gained widespread adoption for the development of dApps, non-fungible tokens (NFTs), and decentralized economies.

Thus, Although Monero, Bitcoin, and Ethereum are major cryptocurrencies, each has its own unique focus, technology, and characteristics that differentiate it from each other.

Monero stands out in privacy and security, Bitcoin in financial freedom and decentralization, and Ethereum in decentralized application development and smart contracts.

Conclusion

Monero (XMR) is one of the leading cryptocurrencies that offers a high level of privacy and security to its users. 

With advanced features such as ring signatures and stealth addresses, as well as an active developer community, Monero continues to be a popular choice for those who prioritize privacy in their crypto transactions.

How To Buy Crypto From Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.