Bitcoin gave the world digital money. The ability to transact in large quantities around the world without the need to obtain permits or use intermediaries is truly innovative.
But for all its advantages over local currencies, Bitcoin now seems to be used only for certain transactions:
- it is not private;
- transactions are usually slow;
- constantly getting more expensive.
It becomes more and more difficult to update and add new functions to the protocol, which prevents the introduction of innovations and advanced technologies.
Then came Monero:
ü private by default with untracked transactions;
ü it has an adaptive block size;
ü has its own codebase.
It is not just another Bitcoin clone. Even its developers are mostly anonymous. Monero is accepted by many crypto services and organizations. Is this all too good to be true?
Why Bitcoin has low privacy and how Monero dealt with this problem
Bitcoin operates on a pseudonym basis, which means that users can perform transactions without providing their data. Instead of using personal information like banks, Bitcoin provides addresses to which coins can be sent. The problem is that addresses, along with transaction information, are stored in a public registry.
Although users can make transfers without providing information about themselves, we now know that the Bitcoin blockchain is openly viewed by analyst companies. These organizations are capable of de-anonymizing transactions with a high degree of accuracy.
Unlike Bitcoin, where you have to do something to ensure anonymity, Monero has set privacy by default. Untracked transactions and anonymity are logged.
An additional benefit of anonymous and untracked transactions is the interchangeability of Monero. This means that you cannot tell one coin from another. Bitcoins can be corrupted.
For example, if an exchange has been hacked and money is stolen, such coins are tracked and blacklisted by exchanges or sellers. Trading with such Bitcoins is unprofitable, which creates great inconvenience for users. Monero’s untraceable nature solves this problem.
Monero vs Bitcoin: Key information
Released in early 2014, Monero is still catching up with Bitcoin, which has been around since 2009, which explains a lot. The trust rating is tilted not in favor of Monero, and now it takes only 9th place among all cryptocurrencies.
Bitcoin has had a lot more time to build its network, and it will not give up its primacy so easily. Nevertheless, it would be wrong to compare these two developments in terms of capitalization – Monero has its own niche, different from Bitcoin. Thought it is not a problem to convert xmr to btc.
Currency has established itself as an alternative for people who want to ensure the privacy of their transactions or use the black market. Bitcoin no longer attracts such an audience, who quickly lost interest in it, realizing that Monero is several steps ahead.
Hard forks pose a danger to Bitcoin, as they demonstrate key disagreements and make innovation controversial. When it comes to protocol updates, Monero has a hard fork policy every 6 months. All users receive timely warning and must update their software, thereby increasing the speed of the upgrade.
Monero has a dynamic block size that adapts to the requirements of the network, as opposed to the limited block of Bitcoin. With dynamic dimensions, you also get dynamic fees. It takes about two minutes to mine the middle Monero block.
The centralization of miners that has arisen due to ASIC systems is a problem that Bitcoin has not been able to avoid. As practice shows, the currency cannot cope with centralization.
Monero uses ASIC-resistant data mining algorithms, which means that coins can be mined using standard processors and graphics cards that ensure decentralized mining.