“Bitcoin”  has been a successful implementation of the concept of p2p electronic cash. Both
professionals and the general public have come to appreciate the convenient combination of
public transactions and proof-of-work as a trust model. Today, the user base of electronic cash
is growing at a steady pace; customers are attracted to low fees and the anonymity provided
by electronic cash and merchants value its predicted and decentralized emission. Bitcoin has
effectively proved that electronic cash can be as simple as paper money and as convenient as
Unfortunately, Bitcoin suffers from several deficiencies. For example, the system’s distributed
nature is inflexible, preventing the implementation of new features until almost all of the network
users update their clients. Some critical flaws that cannot be fixed rapidly deter Bitcoin’s
widespread propagation. In such inflexible models, it is more efficient to roll-out a new project
rather than perpetually fix the original project.
In this paper, we study and propose solutions to the main deficiencies of Bitcoin. We believe
that a system taking into account the solutions we propose will lead to a healthy competition
among different electronic cash systems. We also propose our own electronic cash, “CryptoNote”,
a name emphasizing the next breakthrough in electronic cash.
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Monero Mining: An Introduction to Entering the Privacy Coin Mining World
Monero (XMR) continues to gain attention amongst the cryptocurrency community as a solution for transaction privacy. Founded in 2014, the project has quickly ascended as the leader of privacy coins. If you’re interested in mining Monero, here are the details you need to know.
Reasons for Mining Monero
- Cooler temperatures: Mining Ethereum of other Ethash-based cryptocurrencies, for example, is much warmer at around 12-15 degrees Celsius higher. BTC’s Equihash algorithm also requires more energy to run a mining rig. Since Monero requires less power and less heat is generated, your mining rig should have a longer lifetime compared to trying to mine some other cryptocurrencies. Overall, this should also mean that Monero/Cryptonight algorithm mining operations are lower than mining specific for most other popular cryptocurrencies using different algorithms.
- Price Value: The price per XMR has skyrocketed in a short time. In May 2016, prices were less than $1 per XMR. In late April/early May 2018, prices are closer to $250 per XMR. While this could, of course, go up or down drastically, prices have generally remained above $100 since November 2017.
- Committed to Decentralization: Currently, it is much easier for hobbyist miners to start mining XMR due to a recent algorithm change that focuses on a clear mission of ASIC resistance. In an era where ASIC has led to increased entry-level mining costs, Monero is making XMR easier for more people to mine. We’ll examine the recent ASIC resistance battle more in a dedicated section below.
- Exchange Availability: Because XMR is considered to be one of the top cryptocurrency projects and is ranked consistently within the top 15 of the market cap rankings, it is a currency that people trade often. In turn, this liquidity will give miners the opportunity to sell XMR rather easily on almost any cryptocurrency exchange.
- Less Hardware Required: Since Monero requires less hardware than mining for other cryptocurrencies, this makes the entire process of making your own XMR mining operation cheaper and easier to accomplish.
Reasons Against Mining Monero
- No ASIC option: Yes, this is also the same as the third reason for why you should mine Monero. Essentially, Monero’s ASIC-stance can be a good thing or a bad thing depending on your perspective. For most people who don’t have the resources to fund large ASIC mining operations, not having an ASIC option is a good thing. For those people that want to run an ASIC-based enterprise-level Monero farm, this is a bad thing. As of April 2018, ASIC mining with Monero is practically impossible to do.
- Other Privacy Coin Options: If you are a miner who likes to HODL, Monero could very well go up in value in the future. However, other mineable privacy coins might be better options as they could have more value growth than XMR over time. There are a lot of other up-and-coming privacy coins which are looking to surpass Monero’s technology and market cap.
This article by Delton Rhodes was originally published at Coincentral.com