Monero flaunts some very unique qualities that make it the best currency to acquire. Here are its exclusive properties that are provided to the crypto by its CryptoNote algorithm.
Opaque transactions
While you are dealing with Monero, you will be able to enjoy complete control over your transactions. This happens because your identity is private and anonymous and no one will be able to detect how and on what you are spending money on.
Decentralization
All wallets and nodes are equally eligible to verify Monero coins.
Untraceability
Monero coins cannot be traced back to the blockchain because of the high encryption that’s used.
The benefit of fungibility
Unlike any other crypto on the market, Monero is entirely fungible. Fungibility is defined as it follows: a good or asset’s interchangeability with other individual goods or assets of the same kind.
Monero was explicitly created in order to address the problems of traceability and non-fungibility that are plaguing all the other cryptocurrencies. With Monero’s privacy of data, the transaction trail is basically non-existent, and as a result, there is no concept of bad Monero or good Monero; hence they are fungible. All coins have the same market value regardless of the time and place.
Monero’s ASIC resistance
Monero is not exactly ASIC (Application Specific Integrated Circuit) resistant. This is because the cost of manufacturing ASICs for Monero will be sky high and this is not feasible at all. ASIC resistance means that your crypto is more equitably distributed as there’s no centralization of mining due to ASICs bumping out the GPU miners. Monero works on CryptoNote system, and it uses CryptoNight as a hashing algorithm. This action prevents the creation of mining pools, and it makes even distribution of the currency possible.
Ring signatures
Monero uses a particular ring technology in order to protect users’ privacy on the input side of transactions. A ring signature is a digital signature in which a group of possible singers is merged together in order to produce a distinctive signature which will be able to authorize a transaction.
Long story short, Monero uses the ring signature technology to help senders mask the origin of a transaction by making sure that all inputs are indistinguishable from each other.
Dynamic scalability
The scalability of cryptos is one of the hottest topics these days in the cryptosphere. Unlike Bitcoin which has a self-imposed block size limit of 1MB, Monero has no such pre-set limit, and this gives the crypto the quality called dynamic scalability.
Darknet markets, a controversial subject
One of the arguable use cases that Bitcoin had and which gave it utility and as a result, value was the Silk Road, and later the darknet markets. Monero itself has seen high demand on modern darknet markets. While there are various factors that go into the value of a crypto, having high demand and utility for darknet markets generates value beyond the one that’s brought on only by speculators. Monero’s first significant jump in market capitalization and speculative trading value is a result of its addition to a major darknet market, AlphaBay.
It’s true that darknet markets are often taken offline, but the market that they serve is resilient, and of course, new ones continue to rise. These are frequently adding Monero as an alternative to Bitcoin, and the reason is more than obvious – the need for convenient and private ways to transmit value online, this is what will continue to drive more and more demand. Companies have been able to make a business out of tracing transactions on the Bitcoin blockchain, this is not possible on Monero’s blockchain.
While some cryptos aim to be regulatory-friendly, Monero specifically works to make tracking and any other forms of privacy invasion impossible or at least extremely difficult.