If you are interested in looking at all the altcoins available and find yourself asking “what is Monero all about?”, then this article will help you gain a better understanding.
What is Monero?
Monero (XMR) is a cryptocoin launched in April 2014 that runs on a all operating systems, including Windows, macOS , FreeBSD, Linux and Android. Like all cryptocurrencies, Monero records transaction in a public ledger.
What sets Monero apart from other crypto-currencies such as Bitcoin, Litecoin and Ethereum is the focus on privacy by designing it to obscure details of the transaction by hiding the identity of the sender, the recipient and the amount of the transaction made.
The negative aspect of this privacy is that Monero is attractive to those wishing to use crypto-currencies for illicit transactions.
Monero also uses a different algorithm to most Cryptocurrencies, CryptoNight proof-of-work hash algorithm, which does not allow for users to trace the transactions in the ledger back, which is possible with currencies such as Bitcoin. Even the actual amount of the transaction is shown as less than the actual amount, and no record of sender and buyer is available for public view.
This is known as an opaque blockchain. Users need wallets to transact with Monero which can be downloaded on the currencies website at https://getmonero.org
Monero Mining Hardware
Mining XMR (Monero) is considered to be more profitable than many of the other cryptocoins and can be done by anyone with a CPU or GPU. The software required for XMR mining can be found on XMR Stak (https://github.com/fireice-uk/xmr-stak/releases). More information on XMR mining will be discussed in follow up articles as well as information on the Monero mining hardware required to build a rig.
XMR Mining Pools
A mining pool is where a group of crypto-miners combine their resources to mine more blocks at a faster rate sand see a quicker return on their investments. Mining pools can be focused on a single currency available for miners to choose or multiple currencies. There are a wide variety of XMR mining pools to choose from. Many of the bigger multi-pools, such as Nanopool, also support Monero mining.
These pools use a variety of payment methods such as PPLNS and PPS+.
Monero Cloud Mining
Cloud mining is when miners lease the Hardware and software from a provider instead of owning their own rig. This is very different to pool-mining as the resources are not combined in monero cloud mining. Most cloud-mining providers will allow you to mine for any currency you choose as long as they have the hardware and software available.
Exchanges allow you to trade one cryptocurrency for another based on the current value of the coins. Not all exchanges will trade Monero, so you’ll have to find a reputable Monero Exchange before you can start trading.
Because of the privacy element of Monero, it has been linked to illegal incidents such as the Ransomware scam Wannacry where the operators converted their takings into Monero. Monero has seen substantial growth since its launch, but much of this growth us been linked to the less savoury elements of the internet such as drug dealers (https://www.wired.com/2017/01/monero-drug-dealers-cryptocurrency-choice-fire/) and other cybercriminals (https://cryptocurrencynews.com/daily-news/altcoins/monero-cybercriminal-altcoin/).