Monero (XMR) Vs Bitcoin (BTC) – Features and Comparison
Monero is one of the many cryptocurrencies in the market today. It is open source, scalable, and decentralized. While bitcoin focuses on a transparent blockchain and IOTA focuses on removing transaction fees altogether, Monero has a completely different USP : complete privacy.
This cryptocurrency, launched in 2014, follows a unique approach that gives a hundred percent anonymity to both the sender and the receiver, the amount of money transferred and also in the process hides your wallet balance, and your other transaction history.
Monero, unlike Bitcoin, does not use a transparent blockchain but rather an opaque one, using a method called as ring signatures.
These ring signatures are essential in making Monero completely private and anonymous. It achieves this by means of redundant transactions.
For example, A has to transfer a certain amount to D. While in normal bitcoin transaction this would just include reduction of wallet balance of A and addition of wallet balance of D, this is not the case in Monero. Dummy transactions of different sizes are sent from A to B and C, who then in turn transfer the same to D.
Thus in a large enough exchange network the number of such redundant transactions would be so high that effectively identifying the sender and the receiver would be impossible. This is reminiscent of traditional banking where transferring money does not make your other transactions, or total balance a public knowledge.
Monero is also fungible. What this means is that every coin of Monero can be used for every other coin. This feature is not present in bitcoin. Thus, if some bitcoins that you possess have been used for illegal activities they can be made obsolete or devalued. This is one of the biggest criticisms of bitcoins, and is once again absent from Monero.
Also as Monero can be mined using normal computers, they bypass the need for mining pools and the problem of not being mined at all when transaction fees are less. This ensures that the Monero is completely viable for nano transactions, which account for the largest chunk of transactions.