A peer-to-peer version of electronic cash that runs on computers worldwide without needing to rely on central authorities such as banks or payment processors.
It has been designed to prevent users from spending the same digital coin twice.
How does monero generate it’s anonymity?
Monero uses a blockchain that ensures every transaction is recorded on a public ledger of all transactions called the “blockchain”.
Although there are many theories about how this works, the simple answer is that blockchain has mathematical formulas that make transactions indecipherable to anyone other than those using the system.
Because these equations are unbreakable, the blockchain serves as a proof that the transfer of digital coins was done between two separate parties.
How does it work with a server?
The blockchain uses a computational algorithm that ensures all participants in the system have a view of every transaction which is necessary to build the reputation system.
When it comes to the ability to perform a specific task, such as deleting a transaction, all of the computers that were holding the data that needed to be deleted needed to be aware of this fact.
Because blockchain participants were not all aware of this data, there was no possibility for the transaction to be deleted.
Does monero come with a wallet?
Yes, monero comes with a client program to manage the digital cash.
Like other cryptocurrencies, Monero is also available in a digital “wallet”.
The wallet can be purchased with fiat currency or from cryptocurrency exchanges or various wallet providers.
What about the fork?
Due to Bitcoin having a strict set of rules which was decided upon in November 2015, which put a limit on the size of blocks on the blockchain.
In Monero, there is no such set of rules. The transactions made are not completely reversible due to the fact the solution to the equations to protect the transactions is open source.
Following an outcry by users of both coins, the two coins were split in August 2016.
This had the effect of moving about 50% of the Bitcoin supply from the main blockchain to a new “forked” version called Bitcoin Cash.
This, however, led to more conflict between users of both coins as it had the effect of a much smaller number of Bitcoin being mined from the new fork.
Another fork has been mooted with the founders of Bitcoin issuing a warning about the dangers of a major crisis within the virtual currency.
They have said that users of the digital currency need to be prepared for a “chain split” which could cause a new currency to be created.
They told CNBC that this “replaces all the coins that were at one time in circulation, and it creates two versions of bitcoin.
“At this point it’s not clear what the value of those coins will be.”
The currency’s two most well-known wallets, Blockchain and Coinbase, announced they would halt bitcoin deposits due to this fear.
What are some of the benefits of using Monero?
As with other cryptocurrencies, monero is not backed by any government, or central bank.
However, many of the services that allow users to transact in the currency are banks or other institutions.
In an email to CNBC, the community developer for the currency said that “there are no governments involved in the creation of Monero”.
Some of the benefits of using the currency is that it has higher privacy than any of its major competitors.
It also has lower transaction fees than other coins, which are in the region of $10, depending on the exchange rate used.