Crusher of the Month – Monero – December 2017 - Crush Crypto

Crusher of the Month – Monero – December 2017

In the Crusher of the Month series, we will write about a coin/token that we have the most conviction in each month. The time frame will be around 1 month, or until we publish the next Crusher of the Month. In December 2017, our Crusher of the Month is Monero, ticker XMR.

As of December 12, Monero is the #9 most valuable cryptocurrency with a market cap of $4.7 billion, but we believe it has the potential to climb even further over the next year and beyond because it is, in our view, the best cryptocurrency for financial transactions.


Brief Introduction of Monero

Monero is a cryptocurrency that was launched in 2014. The use of ring signatures is one of its defining attributes. In a ring signature, a group of users sign off on a transaction, but only one user in the group actually owns that monero.

If anyone wants to track a particular transaction, they can see that one user in the group sent the transaction, but they do not know which user sent it specifically. Therefore, it is nearly impossible to trace transactions on the Monero network.

There is a new block generated on the Monero network every 2 minutes. 0.3 monero is generated every minute, or 157,680 every year. This translates to just over 1% inflation in 2017, and the rate will gradually decrease as the supply of monero gets larger.

Monero has a dynamic block size structure, so that block size can expand automatically to accommodate higher transaction volumes so as to keep transaction fees low. 

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Why do we like it?

Increasing Scrutiny from Government Leads to Rise in Privacy Coins

With the surge in popularity in cryptocurrency in the past year, governments around the world have been keeping a close eye on it. Many countries are introducing or planning to introduce restrictions or regulations to control as well as collect taxes from the boom. Not to mention, cryptocurrency investing is a gray area in some countries in which regulators may deem certain coins or tokens to be securities.

As a result, we believe cryptocurrency users will become more and more concerned with their anonymity in the use of cryptocurrencies. Very few people want to have their financial transaction history exposed for others to see. Therefore, we believe privacy coins will have wider adoption in the near future.

Monero vs. Other Privacy Coins

We believe Monero is superior to other privacy coins mainly due to their private-by-default feature. On the Monero network, everything is hidden unless the sender chooses to reveal certain information – this is the opposite of other privacy coins.

If only a small percentage of the transactions in a network is shielded, it makes those transactions stick out like a sore thumb. This is why we believe the mandatory privacy nature of Monero is the best structure to maintain absolute privacy.

Below is a comparison of Monero and other major privacy coins:

Dash uses CoinJoin and can take a long time for the partners to mix different transactions.
ZCash has less than 400 fully shielded transactions a month, making it very easy to trace transactions on the network.
PIVX works the same way as Dash but with less partners, so it takes even longer to mix transactions.

Robust Development Roadmap

Monero is an open source project without the backing of any centralized organization. Any developer can contribute to the project and some even receive funding from the community if there is enough support.

There are regular, scheduled hard forks to upgrade the protocol. So far, the community has been very united and none of the hard forks were contentious. As a result, Monero has been able to improve and make big changes over the years.

Here are some of the major developments for Monero in the near future:

  • Shrinkage of transaction sizes by over 80%
  • Multisignature support
  • Mobile wallet
  • Kovri development which hides IP addresses, making Monero completely anonymous
Increasing Adoption

Video Summary


More Information

Website: https://getmonero.org/

Reddit: ​https://www.reddit.com/r/Monero/

GitHub: https://github.com/monero-project 

Interview with Riccardo Spagni, lead maintainer of Monero, by Jimmy Song: https://www.youtube.com/watch?v=FRdGe9kNBRI 

Interview with Monero team by Crypto Rand: https://medium.com/@cryptorand/interview-with-monero-team-xmr-9c94e56ad912 

Weekly newsletter on Monero development: http://monero-observer.com/


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