According to Monero’s site: Monero is a secure, private and untraceable currency system. Monero uses a special kind of cryptography to ensure that all of its transactions remain 100% unlinkable and untraceable. In an increasingly transparent world, you can see why something like Monero can become so desirable. In this guide, we will see the mechanics behind Monero and see what makes it so special.
What is Monero? The Ultimate Beginners Guide
The origins of Monero : Back in July of 2012, Bytecoin, the first real life implementation of CryptoNote, was launched. CryptoNote is the application layer protocol that fuels various decentralized currencies. While it is similar to the application layer which runs bitcoin in many aspects, there a lot of areas where the two differ from each other.
While bytecoin had promise, people noticed that a lot of shady things were going on and that 80% of the coins were already published. So, it was decided that the bytecoin blockchain will be forked and the new coins in the new chain will be called Bitmonero, which is was eventually renamed Monero meaning “coin” in Esperanto. In this new blockchain, a block will be mined and added every two mins.
Monero is headed by a group of 7 developers of which 5 have chosen to remain anonymous while two have come out openly in public. They are: David Latapie and Riccardo Spagni aka “Fluffypony”. The project is open source and crowdfunded.
Special features of Monero
So what is it about Monero that makes it so hot and in-demand. What are the unique properties that the CryptoNote algorithm gives it? Let’s check it out.
Property #1: Your currency is yours
You have complete control over your transactions. You are responsible for your money. Because your identity is private no one will be able to see what you are spending your money on.
Property #2: It is Fungible
Another interesting property that it gains, thanks to its privacy, is that it is truly fungible. What is fungibility? Investopedia defines fungibility as follows:
“Fungibility is a good or asset’s interchangeability with other individual goods or assets of the same type.”
So, what is fungible and what is non-fungible.
Suppose you borrowed $20 from a friend. If you return the money to him with ANOTHER $20 bill, then it is perfectly fine. In fact, you can even return the money to them in the form of 1 $10 bill and 2 $5 bills. It is still fine. The dollar has fungible properties (not all the time though).
However, if you were to borrow someone’s car for the weekend and come back and give them some other car in return, then that person will probably punch on the face. In fact, if you went away with a red Impala and came back with another red Impala then even that is not a done deal. Cars, in this example, are a non fungible asset.