Monero (XMR) is an open source cryptocurrency that can be run on different operating systems in a decentralized and proprietary manner.
We are, once again, faced with a digital currency such as IOTA or Litecoin. Therefore, it allows transactions without using legal tender money. In addition, privacy is a primary objective, which has caused some legal problems, but also a good reputation.
Being open source means that any programmer can contribute improvements. In addition, since it can be used in a decentralized manner, it avoids the intermediation of central banks, something that does happen with central bank digital currencies.
History of Monero
Nicolás van Saberhagen (a pseudonym) publishes in October 2013 the protocol on which Monero (XMR) is based. The following year, the cryptocurrency platform received an attack that affected its transactions, a problem that was quickly resolved, returning to normal.
In 2016 its market capitalization and transaction volume increased significantly. This was helped by a market called “AlphaBay”, which operated in the “Dark Network” but with illegal actions, for which it was closed in 2017 and affected said price.
The “Confidential Transactions” privacy algorithm and “Ring Signatures” were implemented later, reinforcing this feature and bringing reputation and benefits. Shortly thereafter, it also reduced its transaction fees considerably, to compete with others.
Let’s see some of its most relevant features.
- The first, already mentioned, is privacy. Thus, Monero’s priority is that his transactions are private and anonymous, something that he shares with others such as Litecoin.
- On the other hand, although commissions have fallen, they are high compared to others.
- Users need a client program or wallet. This is used to carry out transactions in this virtual currency.
- It uses two different types of keys, the view key and the spending key, these being important for your privacy.
- It has a higher number of transactions per second than Bitcoin, due to its larger block size.
- Safety is another primary objective. In addition, it goes hand in hand with privacy, since both seek to protect the user.
To finish, we offer the price of one year of this cryptocurrency. We have presented two graphs, one with the value and another with the contracted volume.
We can see that the price was decreasing until December 2021, when it began to grow. If we look at the trend line, it is decreasing and with a coefficient of determination (R squared) close to one, which indicates that the line seems to predict quite well.
Regarding the volume, we see that it follows a decreasing evolution, but with various peaks over time. Thus, the most pronounced occur between April and June 2021 and April 2022. We see that, for a simple analysis, these two graphs provide a lot of information about Monero.