Just like the cryptos mentioned earlier, Monero (XMR) is also a virtual coin, also called cryptocurrency. The coin was launched in 2014 and is therefore relatively young compared to, for example, Bitcoin and Ripple. Monero has a completely different approach than, for example, Bitcoin and should therefore not be called an alt coin. They are derived from the Bitoin protocol and Monero seems to be opposed to this.
Monero also deviates from Ethereum and Ripple, for example, because they focus primarily on the transaction and are therefore a kind of payment network, where Monero does in fact focus on the currency itself.
That all sounds very nice, but this does not immediately make you wiser, does it? That’s right, to be honest, I think the whole story of Monero is also mysterious. But if I look further into it, I suspect that that is precisely the whole structure of the network! You can read why I think that below.
What makes Monero unique?
As said, Monero finds themselves unique, and they are somewhat opposed to other cryptos. An agreement is that this coin also works with a BlockChain, or ledger. Furthermore, every transaction must be verified and recorded in the BlockChain. This is also done through minen, where the community validates a transaction and writes it in the ledger. The coin is set up on the basis of three pillars:
Monero stands for complete anonymity, so also for its users. Although every transaction is recorded, they use far-reaching technology to hide all data from the transaction. For this they use three different technologies:
Ring signatures: hide the identity of the sender (payer) of the transaction
Ring confidential transactions (RingCT): hides the amount of the transaction
Stealth addresses: hides the identity of the recipient
The data is therefore recorded in the ledger but is completely protected by this technology. It is also not possible to do a transparency transaction. In this Monero deviates from Bitcoin, with the latter the transactions are always transparent and visible to everyone (in principle).