Monero — the Choice of Crypto Scammers? What is XMR, and How Does this Coin Work
Due to the peculiarities of this altcoin, some crypto exchanges even have refused its listing. But why is it so radical? Does the XMR token have any advantages, who uses it, and in what areas can it be used for a good cause? Let’s find everything out now!
In early June, the US Federal Bureau of Investigation recovered approximately $2.3 million of the $4.4 million that Colonial Pipeline paid the hackers in the form of a ransom. The funds were transferred to the attackers’ crypto wallets in Bitcoins. Thanks to this, they were tracked down.
More knowledgeable criminals are now demanding a ransom not in Bitcoins but in another coin — Monero. In the case of Monero, the blockchain hides the wallet address, the amount of transactions, the name of the counterparty, and this is what crypto scammers want.
Bitcoin operates on a public blockchain, transactions that can be tracked in real-time using various services and blockchain observers. It means that the movement of funds in Bitcoin does not go unnoticed. In addition to the addresses used in the transaction, the payment amount also remains public. Monero is different as it runs on an anonymous blockchain.
What is Monero
Monero (XMR) cryptocurrency was created based on the ByteCoin token blockchain, developed in 2014. ByteCoin is the first cryptocurrency to use the CryptoNote protocol. This protocol includes mechanisms that make the blockchain completely anonymous.
Until now, most Monero developers have not revealed their names. Notable developers include Riccardo “Fluffypony” Spagni and Francisco Cabanas.
CryptoNote provides complete anonymity to users thanks to the following technologies:
- ring signature that allows you to find out the number of coins sent and received but hides the addresses;
- ring transactions, in which the transaction time, the involved participants, and the payment amount are hidden and known only to the transaction participants.
Monero owners can create a particular “one-time” wallet for making a payment to protect themselves further. Such addresses allow you to hide the connection between the wallets of the participants in the transaction. This technology is called stealth addresses.
Regulators vs. Monero
The creators of Monero have developed a dynamic block system that allows you to confirm transactions and keep fees on the network low quickly. The system works in such a way as not to create queues from transactions. If unconfirmed transactions begin to accumulate, then the block size may increase, but not more than twice the initial size.
The total supply of Monero tokens is limited (18.4 million digital coins). But the developers have provided a mechanism that will replenish the lost tokens and keep their number in circulation at about the same level. From May 2022, the blockchain will add 0.6 XMR every two minutes.
Typically, the seed phrase that is used to restore access to a cryptocurrency wallet is generated from a set of random English words. Monero has the ability to generate a seed phrase in different languages to mislead crypto scammers when trying to access the wallet.
The future of Monero and anonymous coins
Despite the struggle of regulators with Monero, anonymous coins might have a future. Token developers can justify its use for the greater good in areas where anonymity is an advantage, not a disadvantage. An example is the sphere of charity, where people often choose to donate anonymously.
Analysts agree that it is impossible to ban Monero. The supranational nature of cryptocurrencies discourages censorship even at the global level, not to mention attempts to ban in certain jurisdictions.
Anonymous cryptocurrencies will remain reserved for those who understand technology, know how to “stay out of the limelight,” and know how to enter the darknet. Monero has no plans to become a cryptocurrency that grannies will use to pay in supermarkets at the checkout.
Monero has a very tight-knit community that believes in revolutionizing through decentralization. This is tremendous support. They manage to adhere to the principles of true decentralization in its most ideal form. A community like Monero is precisely what many projects can only dream of.
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