ViaBTC | The King in the “Shadow”: Monero

I. How Monero was born

Monero is a forked coin. Initially, someone nicknamed “N1C0las van Saberhagen” launched the CryptoNote protocol, and Bytecoin was the first cryptocurrency that was built on top of this protocol. However, as Bytecoin diminished, a user by the name of “thankful_for_today” managed to split a new chain from Bytecoin via a hard fork. Subsequently, the new chain launched Monero in April 2014. One resolution approved by community voting changed its name from BitMonero to Monero, which is still in use today.

II. How Monero is mined

Like Bitcoin, Monero also adopts the PoW consensus mechanism, but it uses CryptoNight as its algorithm, which was upgraded to RandomX in 2019. CryptoNight is not ASIC-friendly. Furthermore, while many coins have embraced ASICs and are opposed to resistance, the Monero community has taken a contrary view. To help increase ASIC resistance, Monero has previously executed hard forks every 6 months, slightly altering and improving the algorithm. This led to the upgrade to RandomX at the end of 2019. As such, specialized ASICs that were specifically designed to mine cryptos based on certain algorithms were rendered useless, which means that users can mine Monero through CPU and GPU with regular home PCs.

III. The appeal of Monero

If the world only needs one crypto, three years ago, you would have picked Bitcoin. However, along with the boom of cryptocurrencies like Ethereum, users are no longer so sure about their previous answers. However, if only one anonymous crypto is needed, then Monero would be most people’s choice in today’s crypto space.

*From April 2020 to April 2021, Monero’s transaction volume soared from about 10,000 tx per day to approximately 23,000 tx per day (source: www.getmonero.org)
*From April 2020 to April 2021, the Monero hashrate went up from 1.21GH/s to 2.29GH/s (source: www.getmonero.org)

Conclusion

Noted for its privacy protection features, Monero is also controversial because of privacy. At the moment, countries including the United States, the United Kingdom, Japan, and South Korea may all ban or rigorously regulate Monero. As such, exchanges and mining pools have had to delist the crypto. Moreover, MineXMR, the largest pool focusing on Monero, recently announced that it will cease XMR mining operations on August 19, which is thought-provoking. In short, as people place a greater emphasis on privacy, the demand for Monero will go up, and its value will be recognized by more users.

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