Monero

Reviewed by Sujaini | Updated on Aug 26, 2020

Introduction

Monero is a digital currency which offers users and their transactions a high degree of anonymity. Unlike Bitcoin, Monero is a decentralized peer-to-peer cryptocurrency, but Monero is defined as private digital cash, unlike Bitcoin.

Monero was created as a Bytecoin fork in April 2014. A fork happens when the original cryptocurrency is divided into two, just to create another version using the open-source formats that are prevalent in most cryptocurrency designs. Most forks are formed to address the flaws of the parent currency and to create better alternatives.

Understanding Monero

Monero includes a feature called the ring signature, which blurs the origin of funds to make them practically untraceable to the parties involved in the transfer. The feature ensures that each Monero transaction between two parties is grouped together with other multiple transactions which occur among other unrelated parties. Monero handles transactions in a distinct way. It splits the amount transferred into multiple amounts and treats each split amount as a separate transaction.